In Times of Economic Troubles the Price of Gold is Rising

The price of gold is rising. Not so amazing if you see that the value of the euro is going down. And all of this thanks to the European country Greece that was not able to implement national budget restrictions and recently had to be rescued by the rest of the European Union (EU). Billions and billions of dollars are going to Greece in order to save the country. In times of economic troubles - and this is a biggie - gold becomes a last resort for investors to put their money safe.

The countries in the European Union are obliged to keep their budget deficits within 3 percent. This way the euro would keep its strength. That agreement has been infringed right from the beginning. Not every country is able to control its political forces though. Since the European Parliament has no real power, fines cannot be handed out; only pleas...

It is not only Greece that is in trouble; Spain and Portugal are the next countries the EU has to rescue. The Mediterranean countries tend to pay their civil servants far too much salary - together with jobs for life - and do not put away enough money to pay out the pensions to their seniors. So it are the West- and North European countries that have to bail these countries out.

You can imagine that the rest of the EU is not in favor to hand out billions here and billions there. At least not without any strict guarantees; although everybody knows guarantees are worth nothing when it comes to the point. They look nice on paper though.

The financial markets know all this as well and that is why the euro is going down like a brick in the water. Together with the European governments having to rescue Greece and possibly Spain and Portugal that means that all European people are now fearing for their private finances. Those who have been scrimping and saving can wave their money partly goodbye; our pensions will not be what they promised to be when we started the pension plan.

This is where gold comes in as our last resort too... Not only for the rich and famous, but also for the common man. Everyone can buy gold on the internet or through sales persons these days. Just remember that you buy bullion gold. Coins are very nice for collectors but not worth as much in the future as the good old physical gold. With the value of gold being stable for centuries and climbing in worth as well the owners of physical gold secure their financial future.