In the aftermath of the elections for representatives in the EU Parliament gold prices are looking for direction. Following the initial blow, it was obvious that eager buyers invested heavily in the market and prevented prices from dropping further. All things considered, this is good news for consumers.
The message that voters from 28 countries sent to their governments was clearer than ever: the EU cannot survive without a wide and prosperous middle class. All European leaders unanimously agreed that changes must be made, andChristine Lagarde (IMF’s Managing Director) made statements pointing at the same direction. The gold market could not stay impervious to this message.
However, although a large number of European citizens cast a vote of protest, intolerance and even despair, the majority did not question the EU’s status quo, but rather suggested their leaders should wake up, start doing their job and take measures to support the submerging (as opposed to emerging), and in some cases vanishing middle class.
Needless to say, Europe’s economic crisis is no news to the average gold investor, so those who could afford it saw this reaction of gold prices as a buying opportunity. A lot of analysts claim that western investors have lost their interest in gold, but in fact nothing could be further from the truth.
Investing in gold remains the best option
Gold has been acknowledged as the most solid, risk free long term investment, an integral part of any investment portfolio, a safe haven for your savings. The concept of gold bullion’s value is etched in the minds of all Europeans from the UK to Greece and Cyprus. Many of us have received gold Sovereigns as gifts since birth, many have come into gold bullion from their parents or grandparents, and millions have invested in gold in times of prosperity in order to preserve their savings.
On the other hand, the on-going economic crisis in Europe has lead millions of investors to reluctantly part with their gold to cover their needs, while others never had the chance to buy gold as they could never afford it.
Still, gold bullion is no longer a luxury item intended for the world’s plutocracy; it is a strong investment tool used by people of the middle class to safeguard their financial future, and there are still millions of people in Europe who are determined to do exactly that.
This week started with a very exciting session. Gold prices moved in a $10 range, initially dropping at $1,240 per ounce, then leaping at $1,250, finally closing at $1,243.50. Checking the 24-hour chart of this session, we can easily draw two very useful conclusions. The first is that the market is testing support and resistance levels, indicating-along with other factors- that the price dive stops here, at least for the moment and the market is looking for direction.
The second and most important conclusion is that the market is finally moving, and that is good news for the savvy investor who knows how to benefit from a lively market.
Monitor the gold market through the site of coininvest.com and take advantage of great buying opportunities.