In conclusion our main point is that we think it is important that one understands how the «Eurozone
debt crisis premium» impacts the gold market and the ramifications that price movements caused by the changes in this premium have on how one analyses and trades gold.
This is obviously a large simplification, but we are merely trying to make the point that changes in fears over the PIIGS and the subsequent «Eurozone
debt crisis premium» is more like changing the intercept of the gold bull market trend than the gradient.
After all changes in the price of gold, whether due to changes in the «Eurozone
debt crisis premium» or any other factor, are still changes in price and so impact our gold positions.
We think it is important to understand how changes in this «Eurozone
debt crisis premium» impact the gold price.
This caused an increase in the «Eurozone
debt crisis premium» and therefore an increase in gold prices.
This is what we are defining as the «Eurozone
debt crisis premium» and the erosion of this premium contributed to the 8 % fall in gold following the bailout.
Without the «Eurozone
debt crisis premium» gold prices would still follow on the path set by the fundamental factors that move gold significantly and sustainably over the longer term, such as quantitative easing.
Not exact matches
Our measure of the U.S. equity risk
premium — one gauge of equities» expected return over government
debt — has fallen since the global financial
crisis.
Currently, in the Euro Zone ex UK, the equity risk
premium is already above levels seen in the European
debt crisis in 2011 and closing in on the 2009 highs of close to 900 basis points.
Borrowers issued the fewest bonds in Australia in almost three years last quarter as Europe's budget
crisis roiled markets, driving up yield
premiums, while the nation's banks used record term deposits to cut
debt offerings.
Therefore, rather than coughing up the monthly fee for an insurance
premium, concentrate on keeping the revolving
debt so low that you won't be under great stress if you do suffer a financial
crisis.