While the West argues over bonds, China is buying Gold
Author: David Levenstein
JOHANNESBURG -
After hitting a six-week high on Monday gold prices have eased slightly due to the lack of physical demand as markets closed in China, Singapore, Malaysia and Indonesia for the Chinese Lunar New Year. Gold prices climbed to their highest level since mid-December 2011 as investors eyed uncertainties surrounding Greece’s debt crisis and increased tensions in the Middle East. The euro hit a two-week high versus the dollar, mainly due to strong Spanish and French debt auctions.
It seems that although representatives of Greece’s private creditors left Athens on Saturday without a deal on a debt swap plan that is necessary in order to avert a disorderly default, some progress has been made on the details of the plan during talks between the Institute of International Finance (IIF) and Athens. Charles Dallara, the managing director of an association of more than 350 global financial institutions says the biggest loss the bondholders are prepared to accept is in the region of 65%-70%. But, why do these financial institutions demand anything. Don’t they understand that Greece is bankrupt and that Greek bonds have become worthless? When these financial institutions bought Greek debt, they thought they were very clever purchasing such high yielding bonds. Now that they have lost, they want some of their money back. It is the same as asking a croupier for your money back after you have lost on a bet at the casino. It is insane! They cannot now blame somebody else for their poor judgment a year or two ago. The loss therefore belongs to them.
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Categorised as: Gold News
what on earth is a safe haven?surely, a haven is safe by definition, or maybe there are unafse havens – please give examples.