When Greece announced its banks would be closed June 29, the U.S. stock market responded with the Dow falling 350 points and the S&P 500 Index down 2 percent. Not coincidently, the price of gold bullion rose as stocks fell. It’s a regular occurrence.
During times of economic uncertainty, gold is seen by many as an economic safe haven. And the crisis in Greece certainly qualifies in the uncertainty category. As a member of the European Economic Community, the collapse of the Greek economy could destabilize the entire region.