GIG-OS ENGLISH: How can gold cushion the fall of the Greek economy?

How can gold cushion the fall of the Greek economy?

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After the referendum of early July Greece has distanced itself from its relationship with gold, though the precious metal always keeps an ace up its sleeve to help economies in every sort of situation.

What use can make the Greek people of gold now? What about the government? Read on and find it out!

Experts on economy all over the world have shared a wide variety of views on the situation of Greece and the scenarios that both possible answers could lead to, in the global market as well in the gold market. Nonetheless, the issue that should have reached an end long ago, still hangs in the air.

The negative situation of Greece has been supporting gold prices since the Troika put a deadline for the debt payment. But faced with the impossibility of paying the debt without literally breaking the banks, the position of the Hellenic country nowadays is far from being cut and dried.

Now the question is whether the almost unanimous “OXI” (the “no) to the Troika's ideas will compound the misery of the country or will truly help Greece reach an agreement that doesn't lead into disaster.

The whole situation has led to a loss of credibility in the euro that has attracted investors towards the dollar. Given investors seek for short-term returns, the appeal of gold has also faded and the demand for gold has been sluggish since the beginning of the summer month.

A mass of shareholders seem cautious with the growing trend the dollar shows, as bull markets tend to be followed by a crash and the U.S economy is not as strong as it should to fully support the currency. Therefore, many resort to the argument of gold being a natural economy parachute to take whenever the rest of currencies are in free fall.

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