Investors seek the safety of gold as deja vu sets in ahead of European summit

Starting tomorrow, Thursday, the European Union will start a summit that will be the latest episode in the “save Europe from financial armageddon” saga.

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.


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