The European Union has been dealing with a burgeoning debt crisis since the end of last year. Its weakest economies, including that of Portugal and Greece, along with the financial problems of such countries as Ireland and Spain, who have been greatly affected by the international recession, have rendered the European debt crisis a long-term battle. In fact, this financial crisis had led to worldwide ramifications. However, those involved in various sectors of the gold trade, including investors, are enthused about the resulting rise of gold prices today.

Historically, gold has provided a hedge against economic uncertainty. In these times of seemingly never-ending economic instability, investors from the typical doomsayers to Wall Street tycoons are taking part in investing in solid assets, most notably in gold. Whether through gold bullion bars, coins, certificates, derivatives, exchange-traded products, mining company investments, or any of the other various investment vehicles, gold is becoming a mainstream and essential ingredient in international investment portfolios. Gold has become easier to buy than ever through the previously mentioned investment opportunities. While exchange-traded funds have become increasingly popular over the years, many investors still consider the more straightforward gold bullion bars the ultimate hedge against economic uncertainty.

New York money manager, David Einhorn, said, “In recent years, we have gone from one bubble and bailout to the next. Our gold position reflects our concern that our fiscal and monetary policies are not sufficiently geared toward heading off a possible crisis.” Most recently, it is the European debt crisis that has inadvertently augmented gold prices today.

It is true that gold buyers have often been motivated by their fear of government collapse. What has changed is how commonplace it has become across a wide spectrum of investors. Conservative investor Daniel J. Arbess has stated that, before the current economic crisis, he never would have looked seriously at an investment in gold. With spiraling deficits around the world, he has lost confidence in fiat money. Arbess said, “Indebted countries may soon be forced to choose among three politically difficult alternatives: sharp cuts in expenditures, debt default or printing money to pay off debt.” As proven by the growing European debt crisis, the third option seems the most likely. As fiat money is no longer backed by any form of solid asset, putting more of it into circulation will further ignite inflation, and further drive up gold prices today.