In the atmosphere of continuous credit crunch and financial markets’ turbulence, where the price of gold is heading? In case you ahven’t noticed, it’s heading North. Not surprisingly, considering the fact that the Congress rejected the Presidential Bill aiming at calming the financial markets, and injecting liquidity into the banking sector. This made the shares far less safe, and far from being a safe harbor for investors.
Enter the gold traders. They will try in the next few days, to make sure that those investors who abandon shares, go for the gold stocks rather than the cash. It shouldn’t be too difficult, if one considers the historical data at hand. Price of gold (or rather its rise) is just the indicator of how risky the other investments are…
