It's getting easier to convince the average American to buy gold… You can thank the plunging euro currency for the new state of affairs.
Back in December, we identified the classic "1-2-3 trend change" in the euro… and we've highlighted its demise nearly every week. The pan-European currency just struck its lowest low since 2006. It now sports one of the most gruesome charts you can find anywhere. Why is this currency plunge bullish for gold?
Americans occasionally hear about an odd currency crisis happening far off in Thailand, Zimbabwe, or Argentina. But the current crisis in Europe is much more real…
Europe is as developed as the U.S. Many Americans have relatives there. Europe is home to familiar names like Ikea, Volkswagen, Shell, Nokia, and Nestle. All this makes hearing that the region's currency is crumbling different than hearing about problems in Thailand… and it works to get folks nervous about the U.S. dollar… which, like the euro, is managed by a spendthrift government.
We doubt the euro's decline will cause every American to run out and buy gold. But it will cause many "fence sitters" to take notice. Paper currencies are under immense and growing debt loads. The decline in the euro will cause many Americans to visit the nearest bullion dealer to buy a few ounces. Long term, this is bullish for gold.
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