Los Angeles, CA – The spot price of gold reached a record high this week, closing at $1607.90 an ounce on Monday. Up 13% from the beginning of the year, gold is headed for its 11th straight annual gain – nearly doubling in price since the global economic recession in 2008. This rise in value represents Gold’s longest winning streak since 1975 after U.S. and European debt concerns caused increased investor demand for financial security.
Global debt concern has been a driving force behind gold’s continual rise in price. At current, the U.S. debt situation is still in deadlock amongst government officials and is quickly moving toward an August 2nd default. In Europe, the Greek debt crisis in conjunction with fears over the direction of the Euro has European officials in equally as much of a rush to avoid economic disaster.
The U.S. Federal Reserve went on record last week saying it would take action if the U.S. economy looks to be in danger of stalling, but a third round of debt purchase would more than likely cause a continually weakened dollar and inflation. Many financial analysts believe if this type of government bailout occurs, gold may surge to over $2000.
Because of these economic fears, investors continue to convert their paper assets into gold, such as with a gold-backed IRA. The ever growing uncertainty surrounding U.S. and European debt has caused many savvy investors to look to the continued trend of gold to secure financial peace of mind.
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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.