Eurozone crisis will be the next big step up for gold and silver prices

Posted on 11 October 2011 with no comments from readers

Far from being put-off by the recent falls in gold and silver prices, ArabianMoney editor and publisher Peter Cooper is unrepentently bullish in this video produced by MyCityMyDubai.com with an interview by Sandra Mergulhão.

He thinks the eurozone crisis just has to be good news for gold and silver prices in the long-term with the creation of a large amount of electronic money boosting the money supply against the fixed supply of precious metals.

The freefall in the equities and the crisis in the euro zone have lead to the price of gold and silver to go up north, as it is the upside down approach  when it comes to the precious metal pricing. Similar was the situation when there was a crisis, which grappled Greece engulfing Spain, Italy, and Portugal; however, in the US they have an inverse relationship, as the Dollar value fall, the gold and silver rates sky rocketed, and when the dollar value strengthen the gold rates was somewhat range specific. In European countries, buying gold was considered safer form of investment, rather than investing in the risky equity markets.

The interesting components ruling the price of the yellow and silver metal made it to be linked to the interest rates prevailing in the markets, but to determine that with clarity there was a mixed response from many quarters. As they say the down under availability of the precious metal are getting reduced, however the prices have always remained focus on the availability of the metal in the exchanges worldwide. The future could be more of electronic money being pumped up in the economy in several countries, check this site, which is open to such experiment, and thus keeping a check in the gold prices with a fixed supply of the precious metal.

With the power struggle in the scenic Italian country, and prolonged political crisis affecting the economy, having ripple effect in the neighboring countries as well was getting a breather with the  price of gold and silver remain to be unaffected with all the commotion around, and they clearly outperformed to be the winning trade. In recent times with the dollar, prices rallying gold prices are slowly loosing the sheen. As the yield seems to have reduced than what it had a few days back, the price of gold  have started reducing, however in the long run they are hopping back to be in good demand.