Los Angeles, CA – A disappointing unemployment report and continued non-productive debt talks amongst congressional parties have caused US stock markets to plummet in the opening days of the new US fiscal year. On July 7th, the US Bureau of Labor reported that unemployment rose to 9.2% in the month of June with only 18,000 jobs being added to the economy. Over 6 million Americans have been on continued unemployment benefits for 27 weeks or longer, costing the government billions of dollars this year alone.
In addition to the US employment problem, the continued talks of tax increases and social security cuts in order to raise the US debt ceiling have stirred fears of a double dip recession. With the August 2nd deadline the US faces to raise the debt ceiling or face default, President Obama has ordered everyday discussions amongst congress this week to resolve the issue. Yet until Congress can agree on a legitimate solution to the US debt ceiling, the eminent fear of debt default continues to cause financial decline in the stock market.
Despite job growth angst and economic uncertainty, one continual silver lining in the financial market is not silver but another precious metal; gold. On Monday, gold rose to a near record high at $1555.20 an ounce, making it a frequent go to investment to secure investor’s retirement portfolios.
For the past decade, investing in gold has become an increasingly popular trend. With incentive-rich retirement plans such as a Gold IRA, many investors are finding peace of mind with gold’s monetary stability as well as capitalizing on gold being in a bull market. Some market experts believe the value of gold may reach $2000 by the end of 2011, which is a substantial increase from the value of gold circa 1998 (less than $300 an ounce).
Considering the weak job market and the debt woes of the US, many proactive and austere efforts will be needed to prevent a double dip recession and to get the economy back on track. Unless the US figures out a more permanent solution to the debt crisis and rising unemployment rates, investor confidence will continue to diminish. Because of such uncertainty, more and more investors are placing safe bets in precious metals such as gold that will continue to provide financial security throughout the United States’ economic turbulence.
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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.