Gold is now an alluring investment for reasons that the global financial market is gloomy and uncertain, and the greenback has tendency to go weak.
Sitting on the brink of a collapse of the world banking system, we really have very few choices to move on investments in order to lower risks and avoid losses.
Historically, gold has always served as a safe haven in any financial storm. Since the US dollar is losing shine due to the bleak outlook of US's economy, gold is fast taking over as an investment choice.
As US may stagger into a recession in 2009, the Fed is poised to cut rate further to boost the economy. A potentially loose monetary policy does not bode well for the dollar. Simply put, the greenback may head downwards in 2009.
Gold and greenback are relative to each other, meaning they move in reverse order. If the dollar appreciates, gold will come down in price and vice versa.
A potentially weak dollar, therefore, makes gold glitter even more.
Some of our local banks offer gold account service. You may add gold to your portfolio and track the gold price.
14 hours ago