Thursday, 1 September 2011

Gold - Is It the Only Safe Haven Investment Left

With the economy so sour right now, investors seem to be selling out of the market and looking for other areas which have a safe haven status right now. Gold has been a very hot commodity lately along with silver. Over the last two years goal has been dramatically increasing in price and hasn't stopped.
With the insane increase in price, many investors are left are asking has Gold now lost it safe haven status. With the housing crisis, along with falling stocks, many investors were forced to sell out of the commodities to raise cash to cover all their mortgage losses from the Lehman Brothers collapse. Many investors are heading right now, but those that have money left are looking for possible investment opportunities right now.
The latest market sell off we have witnessed here in August, gold seems to be increasing in price in and taking on its current role as a safe haven for diversification play for people that feel they need to place their money somewhere safe. But is this really the wisest thing to do right now, especially with the volatility in the markets and the grey zone in the economy right now.
We seem to be experiencing the forth longest rally in gold since 1975. This has a lot of investors out there nervous especially people holding gold for the long-term. The price of gold bullion is also doing well, due to many hedge funds hinting that these commodities will do well in the coming years back in 2008. With the risk of inflation right now, and also U.S. dollar troubles, their predictions have actually played out quite well.
Although the price of gold has done well, and we are still in the Hangover of the credit crisis of 2008, many analysts now think that Gold is in a bubble. However there are still buyers on the sideline looking to get into gold and gold will really not be in a bubble until you hear the guy shining your shoes on the street he is ready to buy gold.
No financial crisis is created equal. It seems that a lot of the gold investors right now are buying gold and holding them for the long-term. Even buying it for the kids, and also for their grandkids for and for their retirement. With the trouble surrounding the U.S. dollar right now, gold still seems to be a favourite amongst investors.
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