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Gold News Review
The worldwide sovereign debt problems are unprecedented. Many originated in the differences between the stronger and the weaker economies within the Eurozone. Artificially constructed, the Euro is an experiment imposed by politicians on economists in several countries, of which some were not ready for it. These countries had then to be protected by stronger economies against default. The Central European Bank issued out large quantities of extra money to buy government bonds, following the Keynesian model in an attempt to avoid crisis. But the situation evolved differently and the prices of bonds went up. Meanwhile, the Federal Reserve of the United States also issued out extra dollars to cover for some of the country’s debts. The measure had similar effects, which added to the worries that worldwide hyperinflation was a possible scenario. The investors’ trust in paper money naturally dwindled under such circumstances. Due to its special situation among commodities, gold price is a sensitive mirror of this situation. Since 2001 gold market is in a bull phase, with a constant increase until 2008. In 2008 it went down 30% very sharply, but the drop was still milder than in the case of other commodities. Gold price resumed its increase shortly after that, and this appreciation went on until September this year, resulting in a stunning increase of 170%. The 16% drop which occurred in September caused worries about the bull phase for gold being over. Anxious voices predicted a bubble coming, while analysts dismissed this theory. The figures were compared with the last known bull phase known for gold, which occurred in the 1970’s. In 1974 gold price dropped 50%, and then resumed its growth, until it set record values. What happened after September seems to confirm the predictions of analysts: gold price has resumed its steady growth. The on-going world crisis has outcome a particular awareness among investors concerning the evolution of gold price. Starting with professionals and ending with common people, everybody is looking for an alternative to financial insurance related to paper money. Physically allocated gold sells very well under these circumstances, as gold bullion is the only truly risk-free form of possession, that is easy to store, to carry and to trade. Specialized traders offer gold bullion that is certified by the London Bullion Market Association (LBMA) and offer free storage in their own secure vaults. Article Directory: http://www.articledashboard.com When deciding to invest in gold you should take into consideration buying gold bullion coins from Gold Made Simple, which have 99.9% purity. |
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