It is expected that the current economic crisis and the impending bankruptcy of the Greek state would prompt investors to seek refuge in safer havens such as gold.
The Greek bankruptcy is approaching: by the end of June the Greek government will no longer be able to pay its debts. Recent reports from European politicians do not show any sign of a positive outcome. Not only the imminent Greek bankruptcy, but also the crippled credibility of the euro zone troubles investors. However, there is no tentative rise in demand for gold: the gold price barely moves, on the contrary, the gold price keeps declining and has been doing so since February this year.
Specialists indicate that many investors are especially worried about the opinion and actions of central banks and its impact on the economy.
The (strong) position of the dollar vs. the euro is making it less attractive for investors outside the US to invest in gold.
Forecasts predict a further decline in the price of gold and silver is also expected to decline in value. Furthermore, platinum and palladium have already declined in value.
There is another crisis-proof haven that can serve as an alternative for these precious metals: Diamond. Learn why investing in diamonds in times of crisis is a very good idea.