The current financial turmoil is likely to cause the banking system to collapse and major multi-national corporations to be brought to its knees. Savers and investors are now fleeing from the Stock market. Investors prefer the safe havens that are gold and silver prices as their preferred investments. Today, gold prices have reached unprecedented heights. Today’s silver prices are now at their highest point since 1979, and gold has surged to a record nine year high.
Because the banks are not able to guarantee their futures, people worry about how they will manage their money. The paper that financial products are written on is often not worth their value. This is not new, but similar events have occurred in the past. This is due to the increased sophistication of financial markets, and the multitude of financial products that millions have invested in. The average American man on the street today is far more dependent upon the banks than he was back in the 1930’s. We have many investments, pensions, mortgages and other financial products that are dependent on long-term financial security.
The supply and demand of gold today is much like oil. Investors are seeking gold. The central banks and the mining companies are keeping sales back, which is pushing the price higher. The price of gold for immediate delivery increased by $84.67, 11 percent, to $864.42 on yesterday. Today’s gold prices will rise further this year to $1000 an troy ounce.