Gold & silver prices could soon rise even further as a weak US economy and concerns that Greece may default on its overseas loans, is pushing investors to choose reliable places to keep their wealth.
That said, opinions within the investment sector are divided as to whether the price of gold will continue to rise indefinitely. The news that George Soros has sold in the region of $800 million of gold has many analysts re-evaluating their position. When an investor with such a keen nose for markets thinks the price of gold is hitting its peak, maybe there is a hope the price will come down soon. Equally, there are those that believe that while every market bubble has its ‘blow out phase’ – the moment when the price goes through the roof – the gold price still has some way to go; and there are also a hardcore of financiers who point to the fact that gold has been a currency for people for at least a couple of thousand years and will always be the investment of choice. It’s solid, it’s dependable and it carries its own intrinsic value, all factors which they say mean that the price of gold will never be too high.
Whatever the future holds, there can be little doubt that the astronomic price of gold is leading to some never before seen behaviours. Over the past few months there have been stories of jewellery manufacturers boiling their rugs to recover gold dust and installing waste water filters in order to capture traces of gold left on workers hands. Some pawn brokers are no longer reselling antique gold jewellery, favouring instead to immediately send it on to refiners for a quick profit in a time when the public can no longer afford to buy it.
Oh, and the hills around San Francisco are presently hosting some 4000 prospectors hunting for gold in streams, echoing the first gold rush of 1842. It's a mad world.