It is difficult to believe that the much-anticipated Greek elections could have been so inconclusive in terms of the future of the euro and Economic and Monetary Union (EMU), but that seems to be exactly what has transpired.
Like the last round of elections in Greece, this election was extremely close, only this time the pro-euro party came out on top. So, as has happened so many times before, Greece has averted a decision on its economic future and the investment markets have breathed a sigh of relief.
But that sigh was a short sigh indeed. No sooner had investors digested the outcome of the Greek elections then new worries began to surface about Spain, a much larger, much more significant troubled economy.
If this seems like deja vu all over again, that’s because it is just that. Greece is muddling through, but the trouble is spreading elsewhere.
Nevertheless, before everyone forgets about Greece altogether, it is worth mentioning that many observers see Greece’s eventual exit from the euro as inevitable, no matter what the outcome of the election might have been. The economic and financial fundamentals remain the same. Greece is in a depression, with 22% unemployment, much higher among young people. Greece’s banking system is on its last legs. At some point, Greece will have to leave the euro and the crisis will be renewed in Athens, if not elsewhere even sooner…
It is just these types of crises that gold exists for. We have a reprieve. The crisis has been averted. Take advantage of the reprieve by accumulating gold investments before the crisis arrives in earnest.