Any major European default would take a lot of prisoners, but gold bullion and gold coins would get off Scott-free.

November 30, 2011 – Any major European default would take a lot of prisoners, but gold bullion and gold coins would get off Scott-free. With all the bread and circus of Black Friday here in the United States, the continuing trouble in Europe has largely slipped the American mindset. But this week, as the world gets back to work, the European sovereign debt crisis is raising yet another hydra head as Moody’s takes another look.

Gold has already done quite well, considering the problems in Europe. It is partially American bank’s exposure to bad bank debt on European balance sheets that propelled gold over $1,900 an ounce in August. That fear has proven itself founded in the past month as we have seen a major American financial institution declare bankruptcy after a bet on European debt.

For a moment, never mind a bank used its customer’s funds to make that bankrupting bet and that it was completely legal and allowed by the associated regulatory governmental body. And it’s not like there are many Americans out there who are currently out a total $1.2 billion of money they had assumed was safe in their bank accounts. That would teach anybody to invest in gold and to own physical gold in bullion and certified coins.

Unfortunately, that all did transpire with the MF Global bankruptcy. If Americans haven’t got the message about gold, they’ll get other opportunities. Now, as Moody’s declares that “the probability of multiple defaults by Euro area countries is no longer negligible,” and openly announces it has the ratings of multiple European countries in its crosshairs, we should prepare for the fallout here on American soil.

There are no two ways around it: American institutions are at risk and your money is not safe in American banks. We will see more of the consequences of the European debt problem in America. It is only a matter of time before these all play out. As banks are exposed to that risk, they will use any money in an American bank to feed the crisis in Europe the moment the bet goes bad. When banks need liquidity, they have it. The only problem is it belongs to their customers.

The message is not only a “head’s up” as to where the price of gold bullion will go under these current conditions or a desperate plea to use your money to buy gold coins. There is a fundamental problem with the money in America and the only way to safeguard yourself from it is with precious metals. Gold bullion and gold coins are a very effective, and a well-recognized, way to do that now.

Kevin Johnson

Senior Staff Writer – GoldCoin.net