Gold: Always Believe in Your Soul its Popularity is Indestructible

Summary: More positive news from the gold market as current economic sentiment has every investor worth their salt buying gold

Ah, the eighties, the best decade ever!  The best bands, the best lyrics and the best riots in the UK in centuries as the politicians of the day messed with the economy and people’s lives, and got things remarkably wrong.  It would seem that in terms of the latter, little has changed today, but in the face of all this economic uncertainty around the globe one thing is holding firm – and that’s the price, and therefore the value, of gold.

As stock markets around the world tumbled on Monday, gold rose 4%.  A yet further weakening of the dollar today has seen gold futures rise by more than twenty dollars – and the sentiment in the market would appear to be that the future is bright, the future is gold coloured – because greater numbers of investors are seeking safe haven assets for their cash.

Come on, wouldn’t you rather have a gold bar under the bed than all of your cash in a British, German, Spanish, Icelandic or US bank?  Exactly – and you’re not alone in thinking that gold is the future, according to the Vancouver Sun, mints around the world cannot cope with demand for the precious metal in coin form and the US mint has widened its freeze on gold coin sales.

As the world reels from what is unfolding before it in terms of economic instability, everyone agrees that no one knows what is going to happen next!  The only sure fire solution to secure against such uncertainty which breeds greater instability, is finding a safe haven for your assets that are on deposit.  And the safe haven de jour is gold – always popular in a crisis.  In terms of just how popular, according to a spokesperson from Canada’s mint: “we are filling demand as quickly as we can and getting the orders out there.  We are experiencing higher demand than last year.  It’s not just here, it’s at mints all over the world.”

James Moore, a precious metals analyst can concur, he has been quoted on MarketWatch.com as stating that gold “should look to make further gains in the coming days as flight-to-safety demand increases,” and so it is entirely possible that gold will now begin vacillating between the USD 900 to USD 925 range.  And as Peter Spina, president of GoldSeek put it, “the digital printing presses around the world are injecting incredible liquidity levels into the system as the financial system continues to crumble, this is clearly all very gold and silver positive.”

It seems that the popularity of gold is indestructible in these unprecedented times, and no one in their right mind is predicting that this situation will change any time soon.

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