Gold - hard currency for tough times
In the passing week, the gold market anxiously awaited consequences of the tragic events in Smoleńsk, the earthquake in China and the closure of European airports caused by volcano eruption in Iceland.
In the face of such a difficult situation in the world, people started to speculate about gold being the most stable currency. The Bloomberg agency informed that at the end of the year, the price of the gold bullion would oscillate around USD 1,500.00/t oz.
At the beginning of the previous week, we could observe an increase in the value of gold caused by the declining exchange rate of a dollar. On Monday, one ounce of gold cost USD 1,163.50. The financial situation in the European Union stabilized itself, as a consequence of making a decision on granting financial aid to Greece. Ministers of finance in countries belonging to the euro zone obliged themselves to lend Greece 30 billion euro. This solution resulted in setting the EUR/USD exchange rate at the level of approx. 1.3550 and stabilizing the price of gold at the level of USD 1,155.00/t oz.
The situation related to the crash of the President’s airplane in Smoleńsk did not cause larger perturbation on the Polish gold market. Average price of the bullion remained on an average level of PLN 3,290.00 per ounce. In the Mint of Poland, a program titled “Golden Ounce”, which consists in systematic investment of funds in one-ounce bars of purest gold, enjoys increasing interest. The greatest advantage of the program is the purchase of gold at averaged prices and, as a result, smaller currency risk. Furthermore, the Client is entitled to a discount for prices from the current price list of the Mint of Poland and is offered more profitable terms of storing purchased gold bars at the treasury of the Polish Mint.
