Greece averts immediate default, gold bumps up
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By Jeremy Holcombe Contributing writer for Goldco Direct and End the Lie Well, like we said, it has come down to the 11 th hour over in Greece. It seems that, at least for now, Greece avoided an immediate bankruptcy by winning strong acceptance from its private creditors for a bond swap deal. This new bond swap deal would help eat into the huge debt that Greece has and also help clear the path for a new bailout deal. Following this news, gold bumped up a little in price, gaining almost $8 earlier in the day and going into the weekend with at least some momentum. The situation in Greece is much worse than most people think. Newly released data shows that the economy shrank 7.5 percent in 2011, making that the fourth straight year of recession in the country. Seeing as they were brought into the eurozone under false pretenses with the help of Goldman Sachs, this isn't all that surprising. The newest bailout and bond agreement was received nicely by investors, but poorly by Greek citizens, who think the bailout deal is a sham that will put more Greek people out of work in the long run. We will have to wait and see on that one, although it has become obvious that the austerity measures being imposed on Greece will likely be painful for most. "Greece has today got a clear opportunity to recover. But the precondition is that Greece uses this opportunity," said German Finance Minister Wolfgang Schaeuble in a news conference. "It would be a big mistake to give the impression that the crisis has been resolved. They have an opportunity to solve it and they must use it." While something indeed had to be done to get Greece out of this hole – and this is the option right now, we will have to wait and see how this plays out over the long run. Hopefully the new bailout deal will allow the country a new start and new opportunity, which would, in turn, ease the minds of economies and markets all over the world. Gold and other precious metals have actually performed pretty well through all of the eurozone issues. We have seen the prices of gold and silver fluctuate quite a bit, but at no point did anyone ever think that either one of the metals would collapse. Hopefully you got invested into some gold during this time, as the prices were low and bargain hunters were on the prowl to invest in the yellow metal for a chance at a huge return sometime in 2012, as gold is suppose to make a run at $2,000 per ounce according to many an analyst. This latest news out of Greece may give it the footing it needs to make that run, or at least the stability it needs to slowly make its way towards the $2,000 per ounce mark that many thought would be impossible only a matter of years ago. The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct . Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.