Investors turn to gold to protect wealth
September 30, 2008 by Personal Liberty News Desk
The current economic turmoil on Wall Street makes it more difficult than ever to know where to store your precious cash.
Now, it seems that many investors have been turning toward gold as a safe haven for their wealth.
Paul Walker, chief executive officer of research firm GFMS, told Bloomberg that investment in the metal could rise to a record high during the next six months.
"The physical market is extremely strong," he said. "Investment demand is driving prices higher. What we have seen over the past couple of weeks is a flight to quality."
Following the rejection of the government’s proposed $700 billion bailout by the House of Representatives, the demand could grow even higher.
Gold futures increased on Monday following indications that the bailout plan would fail, according to MarketWatch.
Meanwhile, the stock market dropped sharply on the same news. Bloomberg reports that Standard & Poor’s 500 Index fell by the highest amount since 1987, while the Dow Jones Industrial Average saw its steepest tumble since September 12, 2001.
The news agency estimates that U.S. equities lost nearly $1 trillion of value on Monday.