Investors Would Do Well to Accumulate Physical Gold and Silver as Alternatives to Paper Currency

by David Levenstein, IBTimes Gold:

After trading above $1640 an ounce last week, the price of gold fell after hopes for another round of quantitative easing was quashed when US Federal Reserve chairman, Ben Bernanke, failed to provide any hint of further monetary easing in his testimony on Thursday. However, on Friday prices rebounded as there were talks of an imminent bailout for Spain’s banking sector. Then, on Saturday, Eurozone finance ministers agreed to lend Spain up to 100 billion euros ($125 billion) in order to prevent the Spanish banking sector from collapsing. After a 2 1/2 hour conference call of the 17 European finance ministers, Madrid said the amount of the bailout would be sufficiently large to banish any doubts.

Spain has now become the fourth country to seek assistance since Europe’s debt crisis began. With the rescue of Greece, Ireland, Portugal and now Spain, the European Union and International Monetary Fund have now committed around 500 billion euros to finance European bailouts.

If anyone remembers, as recently as May 28, Spanish Prime Minister, Mariano Rajoy, flatly rejected any chance of outside help for distressed banks crippled by a huge exposure to the collapsed property sector. “There will be no rescue of the Spanish banks,” he said.

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