Friday, April 15, 2011

Greek 10 Year Going Parabolic

Greek 10 Year Chart, Courtesy Bloomberg
If you are wondering why gold and silver have been powering relentlessly higher, a look at Greek debt should be sufficient explanation.  Greece, Portugal, and likely Spain will have to leave the Euro before this is said and done.  Greece was supposedly solved via bailout last May, and yet its 10 year is going parabolic, last touching 13.83!
A renewed Euro debt panic, and the dollar cannot even muster a technical bounce! 
Silver and gold are in the process of replacing the dollar as the ultimate safe haven currencies.  Imagine what the gold and silver markets will look like in US dollars when the US treasury yields resemble this Greek chart!  That day is rapidly approaching! This is why any dips in gold and silver must continue to be bought.