Prices of gold touched an all time high record $1500 on Tuesday, breaking a crucial psychological barrier as traders look for investments that are believed to be safe in times of turmoil.
Investors consider gold as the safest way to invest money in the time of economic or political crisis.
The hike in value can be related to the track record of current market turbulence that has made it imperative for the investors to look for a substitute to the fragile U.S. dollar. Gold got all the attention.
Yesterday, the higher prices were due to the dour outlook on U.S. debt. On the basis of the uncertainty around the country’s monetary issues, Standard and Poor’s dropped its perspective for America’s debt to “negative”.
Gold commodities to be supplied in the upcoming months touched a record of $1500.50 an ounce.
Past few months have shown a constant boost in the prices of gold blamed on the disturbances created in the global market due to the parade of unsettling world events.
The start of the year has been quite unpleasant for the entire world and traders from world over are actually compelled to take into account the effects of Japanese natural disasters. Not to forget the hike in the prices of crude oil and a series of revolt in the Middle East and Northern Africa.
So this would mean that the dollar is worth a whole lot less than it was a few years back when gold was $250.00 Keep those printing presses rolling boys. Whohoo Weimar Republic here we come! Seriously its time to look at the future, hyper inflation is not far away.