On Tuesday, gold prices hit an all time high by climbing 1.5%. Most of the cause of the move is because of economic concerns that Congress wouldn’t (or couldn’t) come to an agreement as to the debt ceiling. Even though they have now come to a decision and an agreement to it all, investors are still concerned about the status of the U.S. credit rating. Even though Moody’s has stated that they will hold the AAA rating for the United States, that doesn’t mean that Standard and Poors along with Fitch will do the same.
Today, Wednesday, gold continued it’s climb on making a new high. today’s gold price is $1663.09 I expect it to continue to gain momentum over the remaining part of 2011 and quite possibly all the way to the elections.
Throughout the rest of this week, economic reports will be released and I wouldn’t expect anything good out of any of them. Initial claims, non-farm payroll, unemployment rate and consumer credit are the last of the major ones to come out this week. With these reports coming out as well as the looming condition of the country’s rating, gold will continue to climb and make wise investors a ton of money. Friday’s U.S. GDP data showed the economy stumbled in the first half of 2011 and came close to contracting in the first quarter.
We are not even into the recovery stage of this recession no matter what any politicians tells us. Some investors worried about the risk of a recession that could prompt the Fed to use more stimulus, feeding inflation. As it is, the Federal Reserve is already talking about what they can do to help get the economy moving again. With that thought alone with the possibility of QE3 and keeping interest rates low, investors are moving into the commodity sector. Silver has gained 3% in the last few trading days as well as other precious metals. The commodity (mainly gold) has always been a safe-haven for investor who are concerned about economic havoc.
The DOW has lost a lot of it’s gains made this year. The DOW lost 266 points on Tuesday and only gained back 30 point today. So now is the time to stop thinking about investing in silver and gold start owning silver and gold today.
If you’re not sure where to start with your precious metal purchases, take a look at a company I’ve been using for some time. Click here for my review of Straight Silver.
Search Related Tags: commodity sector, economy, Gold, interest rate, Investing In Gold
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says:
I have to agree too that gold for safekeeping is smart – especially with where the economy is going. Not where you are going to make money, mind you, but just one method to protect it. This is really fantastic!
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Twitter: cookingquinoa
says:
I agree – gold for safekeeping is smart – especially with where the economy is going. Not where you are going to make money, mind you, but just one method to protect it.
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It always amazes me that people keep buying into gold, when it’s not any more useful than it was a few years ago. Eventually, it’ll come back down to the usual ~$400/ounce mark, and a lot of people will be very unhappy.
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My grandmother always said to invest on gold: its value only increases in time so you can’t go wrong with this kind of investment.
Sure you have to make sure to also place your money in medium and high risks funds, but for safekeeping gold is king.
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