GoldPaq

Stable Ground

The shaky American dollar has increased the demand for gold as a solid investment.

Fixed pricing and a worldwide market means that the price of gold should remain strong and could potentially go much higher than the $1000 dollar landmark.

Bear Stearns Sells for Pennies on the Dollar

The recent purchase of the Bear Stearns Investment Bank by JPMorgan Chase & Co. further confirms the economic trouble the US faces.

In his article Gold Rises on Bear Stearns Buyout, Stevenson Jacobs of the Associated Press gives us some insight into how the JPMorgan Chase & Co. purchase has an effect on the price of gold.

“JPMorgan Chase & Co. said Sunday night it would buy Bear Stearns for $236.2 million — or $2 a share — in a deal worth a fraction of the investment bank’s book value…”

The threat of a recession and a crashing housing market has people nervous about their finances and concerned about banks in financial trouble.

Investors Seeking Stability

The Federal government is discounting interest rates and implementing tax breaks in an attempt to re-stimulate the flagging economy.

In response investors are seeking safer and more stable investments (like gold and precious metals) as a opportunity to keep their dollars worth something.

The Future Price of Gold

Although the price of gold is rising sharply, can it go much higher?

Gold is worth a lot right now, and people are selling their unused jewelry worldwide.

Could it be worth it to hold onto yours in the hopes of a higher peak in the future?

If you are sitting on a safe worth of gold bullion, wait it out because the price is likely to rise higher.

For the rest of us who have small pieces of jewelry and scraps to sell, waiting for the price to go up could only bring us a few dollars more and may not be worth the bother.

Plus, there are environmental factors to consider.

A heightened demand will have consequences as it initiates a gold rush the likes of which the world has never seen

Recycling what you don’t use helps keep up with demand without paying the high price of mining operations.

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