Given the disappointing outcomes of previous summits it is no surprise that investors moved back into gold today, seeking a safe haven from the fallout of what ever the European policymakers are likely to come up with this time.
The market was rather subdued, with gold only rising $4.70 per ounce, but the key is to look to the longer-term pattern.
What generally happens is that the world looks upon these summits with great hope as they begin.
Then, at the end of the summit, the attendees make a grand announcement about the wonderful agreement they’ve reached to solve Europe’s debt, economic and financial woes.
The markets breathe a sigh of relief…
…and then, inevitably, reality catches up and the summit agreement ends up being smoke and mirrors and, as a result, the markets despair yet again.
It’s much wiser to accumulate your gold investments now, before the inevitable happens yet again.