Los Angeles, CA – With U.S. politicians at a stalemate over the 14.3 trillion dollar deficit just days before the debt default deadline, economists and financial analysts alike are predicting a downgrade of the United States’ credit rating. President Obama made comment that U.S. lawmakers’ indecision to raise the debt ceiling is a “dangerous game” and such indecision would cause a “deep economic crisis”. Many economists have voiced the same concern in that if an agreement is not reached to raise the debt ceiling, the results could cause a massive blow to the stocks and bonds market. At the same time, the implications of a U.S. credit rating downgrade would likely cause the treasury rates to increase by 60 to 70 basis points, raising borrowing cost by approximately one hundred billion dollars a year.
The unresolved debt discussions combined with a potential U.S. credit rating downgrade has causediInvestor fear and bewilderment. As a consequence, the value of gold has surged to record highs this week, making it a continued go-to asset for investors to protect their financial wealth.
Gold reached above $1620.00 on Tuesday, likely due to the economic uncertainty surrounding the U.S. debt ceiling crisis. Bayram Dincer, a financial analyst for LGT Capital Management, stated that “precautionary investment demand is supporting gold and silver” as a result of U.S. Debt/credit downgrade anxiety. In addition, HSBC Securities analyst James Steel made the supporting comment: “Gold, along with a few select currencies, is increasingly the go-to asset as investors seek it out for its safe-haven properties.” He continued to say that”the weakness in the U.S. dollar is reinforcing the gold rally”. Gold has traditionally been a very trusted investment to secure financial assets, especially in troubled economies.
With gold at an all time high and much uncertainty revolving around the United States debt crisis, many investors are moving their paper backed financial portfolios into an individual retirement account holding physical gold. Investing in a gold IRA can prevent loss of financial wealth from inflation and economic turbulence.
For more information on starting a Gold IRA account today, contact American Bullion and learn how to receive up to a $250 bonus with a new self-directed Gold IRA account.
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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.