The price of gold has now risen above $1500 an ounce. Instability in the Middle East affecting oil prices and uncertainty over the global economy have led the price of gold higher than it has ever been before.
After Standard and Poor’s downgrading of US debt the price of gold rose immediately. It seems that concern over the world’s financial recovery and media frenzy is pushing investors towards the gold safe haven.
Whether the cost of gold continues to rise largely depends not only on investors but also on how well founded the anxiety over the global economy is. Providing there are no more major revelations or events regarding the stability of global finance then it is likely that investors will calm down and the price of gold will drop.
However with mounting concern in Europe over Greece potentially defaulting on their loans this summer it seems like anything is possible. The price of silver has also risen dramatically to a thirty one year high for much the same reasons as gold. Investors are looking for a safe and stable investment but the question on everyone’s mind is how long these high prices can be maintained.
