Lloyds Commodities: Greece default worries cause gold price to rise to one-week high

Oct. 4, 2011 - PRLog -- PALM BEACH GARDENS, Fla. – Investor concerns that Greece has come closer to a financial default have caused the price of gold to rise to a one-week high on Oct. 3.

“Investors are seeking a safe commodity in which to place their cash because of the uncertainty in Greece,” said Frank Gaudino, managing partner at Lloyds Commodities, a precious metal wholesale dealer based in Palm Beach Gardens, Fla.

According to the Comex, gold advanced $35.40 – about 2 percent – to hit $1,657.70 an ounce on Oct. 3. The price of silver increased 2.4 percent to $30.795 an ounce.

Greece has been under scrutiny for months over its debt. Fluctuating progress in Greece is often been at the root of precious metal vacillations. Investors are primarily concerned that default in Greece would shock the world’s financial system.

On Oct. 2, the Greek government announced that it wouldn’t meet its deficit targets for the year. This generated fear that the country would not be able to count on support from the International Monetary Fund, European Union and European Central Bank. Investors responded by leaving stocks and turning to safe-haven precious metals such as gold and silver.

Gold has historically attracted investors when the outlook for other assets is bleak. However, gold fell 11 percent in September – its sharpest monthly decline in almost three years.

“Consumers saw a good buying opportunity when the metal plunged from record highs above $1,900 an ounce last month,” said Gaudino. “Therefore, we saw an increase in physical demand for gold.”

Now as October commences, gold appears to be back on the upswing, with Lloyds Commodities predicting the precious metal will reach $2,000 per ounce before the year’s end.

“More investors than ever before are jumping on the gold bandwagon,” said Gaudino. “We invite investors to claim a piece of this lucrative pie by becoming an independent retailer with our precious metal wholesale business.”

For more information about how to get started as a new independent gold dealer with Lloyds Commodities, visit http://www.lloydscommodities.com/.

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About Lloyds Commodities

Lloyds Commodities is a wholesale dealer specializing in the purchase and sale of precious metals such as gold, silver, platinum, palladium and copper. Lloyds maintains relationships with worldwide suppliers, financing institutions, and investment bankers to maintain client equity. Lloyds has extensive back-office support for day-to-day operations -- including trade confirmations and statements -- allowing its retail clients to focus on expanding and marketing their businesses. For more information about Lloyds Commodities, visit http://www.lloydscommodities.com/.