Investment

Gold Coins

There is one major reason why investors around the world are flocking to buy gold – security. At a time when financial markets around the world are shaky at best coupled with debt crises in America and abroad, investors are rightly seeking the safest haven for their investment. As you have seen over the past week or so, gold has been the hottest commodity around with skyrocketing prices. Market fears drove gold prices up to $1800 per ounce, even if only for a short time. It may be time to buy gold.

Let’s revisit two Friday’s past and consider how those market changes affected gold. The latest volatility started when S&P downgraded the US credit rating. While there was much speculation as to how the market would react on the following Monday regarding the downgrade, no one certainly imagined that the Dow Jones would drop 634 points. Within 72 hours, gold skyrocketed up to $1800. It was only as the market began to rebound that the price dropped slightly. (more…)