Gold is regarded as a safe haven for investments. It is a scarce commodity. It is said that if you collect all the Gold excavated all-throughout history it would be the size of a standard tennis court (length x width x height).During times of a recession or fear in the market speculators usually flock to Gold. As per my previous posts I have given my analysis of the markets and the effects on the global economy. As Gold crosses never before seen levels it is proving that the economic events taking place are in fact serious and should be feared.
Gold (XAU) crosses $1,000
Mmmm…from $35 in 1970 to $1000 in 2008. Market must have been in fear and recession for 37 years then…of paper money!
freemarketman- I like your analysis. A rise of 30%+ in the price of a commodity that rarely moves is interesting in itself. Again, I am only referring to the sudden percentage increase over a short period of time. Interestingly, as I posted later the previous high in the 70’s would be valued at above $2000 in todays standard.
Spot Gold today has reached $1030, global instability has been seen across the globe (see todays posts), the world’s stock markets have dropped. Federal Reserve drops rates on a Sunday, and aids a company in a buyout! The Fed is using tools (to boost the economy) not used since the ‘Great Depression.’
It is very interesting where the price could be headed if they are talking about $150 barrel of Oil this year?