by Jan Skoyles, TheRealAsset.co.uk
Gold continued to decline this morning as further news of Cyprus’ bailout were revealed. It seems that one euro-country crisis does not make gold an instant safe-haven. Having said that, reports from Cyprus via Twitter suggest that Cypriots are now turning to gold brokers in a desperate bid to sell their gold in order to get cash – once again gold is there when you need it, and is worth something.
As further events such as capital controls, bailouts and defaults make their way around the Eurozone gold will continue to prove itself as a safe-haven, something which is clear in its price drop today being cushioned by on-going Euro worries.
The way the gold price reacted yesterday however after Dutch finance minister Jeroen Dijsselbloem reportedly said Cyprus is a ‘template’ for EU bailouts. Funnily enough stock markets began tumbling and gold took an upward journey. The reaction in the stock markets is really quite astonishing – that they could really believe Cyprus was just a one-off seems quite amusing. And naturally gold went up, just think what it will do when they really do need to use Cyprus as a template.
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