Seems the lowered U.S. credit rating and eroding dollar have helped propel gold ~
An AP article said today — “Gold prices pushed to new heights Tuesday as investors digested the possible consequences of the lowered U.S. credit rating and Europe’s debt crisis on a slowing global economy.
The declining appeal of the U.S. dollar as a safe place to park funds and nervousness about flagging global growth have helped propel gold.
Some investors view gold as a safer bet amid rising worries about debt levels of the major economies and uncertain stock markets. Its value, unlike that of a currency, doesn’t hinge on whether countries can make their bond payments, or on the vigor of their economies.
Gold futures rose $29.80, or 1.7 percent, to $1,743 per ounce after setting a record price of $1,782.50 earlier in the day.
The metal’s price has more than doubled since the recession began in late 2007, and its climb accelerated this summer.
Gold is more than a currency substitute or an investment for scared traders desperate to latch on to an asset that isn’t losing value.”
Gold may get hit and knocked down a few times, but it will continue to rise as the dollar collapses. If you have US cash, it may be better to put it in a stronger currency, like Swiss Francs or even the CDN dollar.
Thanks Johannes! Interesting about the CDN – That makes sense since S&P still gives Canada and a few other countries a triple-A rating! ~
Thanks for posting this very interesting information, Coralina! It seems that gold has been the hot topic in financial circles for a while now, but the recent downgrade on U.S. debt by S&P has evidently spiraled the value of it upward again. As the federal government has almost made it illegal entirely to own, buy, or sell gold or silver, those who can would do well to move their money out of the U.S. dollar and into a stronger currency as Johannes has mentioned.
If the dollar collapses, I am not sure even gold or silver would be useful at all, as we would be reduced to the bartering system – and you can’t eat metals. Practical items may have far more worth than gold or silver.