Sep 9, 2009

Gold Rush!

The price of gold hit a high of USD1005 an ounce in London yesterday. Gold had only hit this price level in only a few times of its history. Traditionally gold is a safe haven in times of trouble as investors moves out from stocks and bonds to gold and other metals.

Investor's rush to gold is a sign of nervousness and a fear of high inflation and economic recession and more so on the destabilizing of currencies and especially the US Dollar.

The Chinese government has been seen to be quietly buying into Gold and other metals as well as hoarding up on oil and other commodities and raw materials.

There are rumours that gold will continue its run to an all time record of USD1,200 and above. To me the rise in gold prices is viewed negatively as a climate of global uncertainty and the fear of an oncoming financial or economic crisis. The higher the price of gold the greater the fear.

Read Gold Rush II HERE
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