German short selling ban raises fears of Eurozone sovereign default
Despite lack of direction over the last 2 or three days, Gold and other precious metals are looking good as the turmoil in global currencies looks set to continue.
Announcements of austerity plans from Spain and Portugal have failed to quel a good deal of scepticism about the Euro zone economy and currency. Combine this with the German ban on the short selling of bonds, which some analysts have taken as a signal of a looming Eurozone sovereign default, and some European investors are taking this as a sign big trouble.
Swiss refinery Argor-Heraeus have reported a tenfold increase in the demand for small Gold Ingots and minted bullion items since March 1st 2010, as Eurozone small investors flee their currency for precious metal. The increased Demand is almost exclusively European according to Bernhard Schnellmann, Argor's director.
In contrast while BullionSupermarket.com, which serves english speaking markets has seen demand increase around 20% in the same period.