Stock markets plummet but gold still increases in value
Thanks to Jason Dean in Beijing, Martin Vaughan in Singapore and Richard Bourdeaux in Moscow for their August 3, 2011 Wall Street Journal on Page C3 entitled “Central Banks Join Rush
In the midst of what appears to be a worldwide recession Central Banks are increasing their gold reserves and relying less on the dollar and other currencies. Since the Dollar is showing less resilience banks are buying up gold at a rate of over three times what they normally would. This trend happens because when consumers loose faith in the stock markets they tend to buy valuables like gold and silver which will rarely loose value, even in the worst of markets. With so many people being negatively afflicted by the sour market it seems apparent that there will be another worldwide string of bankruptcy filings. Hopefully wiser investments, such as gold, will help future investors to keep their money and financial stability.