Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
The European market was the biggest influence in the price of gold over the month of February, and the week ending on the 27th was no exception. This week, the Ukraine situation, the “Grexit,” and Russian mining all contributed to a short drop and a strong rebound, with gold closing out the week at $1,212 per ounce, up from the Monday price of a flat $1,200 per ounce.
Gold entered the prior weekend on a drop thanks to the Greek government agreeing to come to terms with a debt restructuring plan. On Monday, however, talks broke down and some creditors began a run on European banks in the fear that it was past time to get the most out of the Euro. Thanasis Koukakis, financial editor of the Estia newspaper, reported that if outflows reach levels of one billion Euro or more, the EU will need to institute capital controls.
Tuesday saw gold sink to a weekly low based on U.S. economy news that appeared more bullish than bearish, a running trend in 2015 that’s seen a strong dollar mitigate the value of gold overall. A report that the U.S. economy added 300,000 jobs in February sent gold tumbling down to below $1,200 per ounce for the first time in three months.
The picture on Wednesday was far better for gold investors, thanks to news out of Russia that indicates a diminishing supply in the short term. Petropavlovsk, the second-largest gold mining company in the nation, warned that it would go bankrupt if it could not gain rescue financing from investors. Gold rose $5 in one day on the news.
Thursday proved to be a continuation of the rising tide, with gold gaining a further $8 per ounce. The Philadelphia Gold and Silver index announced that the price of gold had leaped 3.6% in the course of February.
Friday proceeded much as the two days prior, with gold closing out the week having gained $12 overall since Monday. Analysts like Mike Niehuser of Scarsdale Securities noted that the increase in global insecurity reflected positively for gold throughout the week, claiming that “gold continues to have a store of value in uncertain times.”