Golden Truth Blog: by Superior Gold Group

Greek default could have worldwide ripple effect

Tuesday, March 16, 2010

- By John March

The world financial community is considered likely to take at least some action in the coming weeks to bail out the Greece economy because of the impact a default could end up having.

Greece has been dealing with a financial crisis brought on by a deficit larger than its official had previously acknowledged, and which has undermined economic confidence throughout the European Union. A handful of other EU states have also been experiencing serious debt problems, which has invited speculation about the state of financial affairs in the United States, especially in regard to the deficit.

For example, an article from U.S. News and World Report notes if Greece were to default on its debt, it would likely reduce American exports because the dollar would be expected to rise against the Euro in the event of such a scenario. A stronger dollar would be likely to result in more expensive U.S. exports, damaging the economy in the process.

The news magazine also quoted one financial expert as warning that the higher interest rates brought on by a Greek default would potentially bring back the financial crisis and make any lingering economic difficulties worse. A Greek default could potentially make lending and borrowing around the world more expensive.

Also, the article added that even if Greece does benefit from a bailout by its neighbors, it won’t necessarily stop the economic problem because there is no guarantee that wealthy Greeks will stop withdrawing their money from the country’s banks and will otherwise stay committed to its financial system.

In the United States, concerns about the debt are more long-term in nature but they remain a very real concern in light of a federal deficit that will come in at $1.6 trillion this year on the way to exceeding $14 trillion.

Looking ahead, it already costs the U.S. government hundreds of billions of dollars just to make interest payments on the national debt each year, which invites speculation among financiers about how long this situation will be sustainable.

While government officials downplay the idea that the U.S. debt will eventually become unmanageable or subject to default, the threat is substantial in the longer term and could be one reason for investors to talk to some silver and gold dealers about what their options may be.

John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.

If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.

Friday, March 19, 2010

- By Bruce Sands

Silver mining remains an important part of Idaho’s economy, with a significant new operation set to get underway later this spring.

This week, Silver Falcon Mining announced that it will commence operations at its Diamond Creek Mill facility on April 19. Since last fall, the company has been preparing for this date by acquiring permits, making site improvements and taking other steps.

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Tuesday, March 16, 2010
The Social Security system continues showing signs of strain.
- By Superior Gold Group
One reason to consider investing in dealer gold has long been concern about whether the U.S. government will be able to fully fund its obligations to the Social Security system in the coming years.

This is especially the case when considering a recent report from the Associated Press about the $2.5 trillion in IOUs the federal government keeps in Parkersburg, West Virginia for the Social Security system.

The report noted that for the first time in more than 20 years, the Social Security system is expected to pay out about $29 billion more in benefits than it collects in revenues. However, the IOUs that are the subject of the AP report have already been spent on other government spending priorities.

For the past two years, the government has run a deficit in excess of $1 trillion, and the national debt is expected to pass $14 trillion later in the year. Worse, it remains to be seen if there is enough political will in Congress to tackle a crucial topic that has been called the “third rail” of American politics over the years.

Given the financial chaos that a U.S. debt default would cause, let alone an inability to pay out Social Security benefits, those who invest in precious metals may find themselves well-protected against any possible market fluctuations.

News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.

Wednesday, March 3, 2010
Gold remains attractive to both sellers and buyers.
- By Bruce Sands
The ongoing strength in the dealer gold market is being fueled by a mix of economic uncertainty, increased industrial activity in some countries and a growing middle class in emerging nations like China and India.

Prices have enjoyed a run-up for much of the past decade, in part because gold has long been seen as a traditionally safe option for investors wary of trusting their money to a shaky stock market.
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Tuesday, March 2, 2010
The FDIC reminded people this week that their deposits are safe in institutions that it insures.
- By John March
Amid ongoing worries about the economy and the stability of the financial system, the Federal Deposit Insurance Corporation reminded Americans that their bank deposits are safe.

In its announcement, the FDIC encouraged people to keep their money in deposit accounts at banks that it insures, adding that deposits up to $250,000 are covered.
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Friday, February 26, 2010
Silver offers good long-term investment potential.
- By Bruce Sands
An Idaho-based silver and gold mining company has announced a significant boost in its 2009 levels of production and proven reserves.

According to Coeur d’Alene Mines Corporation, its total silver production in 2009 stood at 17.7 million ounces, marking a 47.3 percent increase over the 12 million ounces that were mined in 2008. The company’s proven silver reserves at the end of 2009 were 269 million ounces, which was said to be a 16 percent increase over the previous year.

The company’s gold mining efforts have also been doing well in the past year. Total gold production for 2009 was 72,112 ounces, marking a 56.4 percent improvement from 2008, when the company mined 46,115 ounces of the precious metal.

As far as proven gold reserves go, Coeur d’Alene indicated that it saw a 26 percent increase last year to 2.9 million ounces. Significant progress has also reportedly been made at three new precious metals mines held by the company, all of which are projected to have a long life.

Demand for dealer gold and other precious metals has continued to hold up in recent months and is projected to do as industrial applications requiring these commodities continue to pick up pace in various economies around the world.

News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.