American Bullion -- Gold Rises 5 Straight Sessions

Wednesday, March 03, 2010 at 12:00pm

March 3, 2010, Los Angeles – Gold bullion prices rose for the fifth straight session on Wednesday. Investors are buying Gold coins as an alternative to currencies. The dollar fell against the major currencies Wednesday after Greece's announcement that they would be putting into place austerity measures in an attempt to reduce its deficit by up to four per cent this year.

 "The market is looking for some security with gold," said Commerzbank analyst Eugen Weinberg. "The problems in the euro zone, and the problems in Greece, may well pull people into the gold market as they look for diversification and security." The increased volatility in the European currencies helped keep Gold bullion, priced in euro and Sterling, hovering near record highs on Wednesday.

Matt Zeman, a trader at LaSalle Futures Group in Chicago said, "Gold is going to become the currency of choice as people lose faith in fiat currencies, these countries continue to write checks that they can't cash." Investors concerns over Greece's ability to rein in its debt burdened economy and the UK's upcoming election uncertainties have taken their toll on the European currencies. 

Gold Core Ltd., a broker in Dublin, said in a report, "There are hopes that the Greek deficit cuts will stem the tide of the declining euro, concerns that the austerity measures being taken in Greece may soon have to be undertaken in other European economies and in the UK should lead to continuing safe-haven demand for gold."

Recent forecasts for Gold bullion prices to reach $1500 seem much more realistic as more and more countries reveal the weaknesses existing in their economies. In the shape the currency market is in, whether you consider your buying of physical Gold a flight to quality or as a safe haven investment, you would be right.