Is the price of gold set to hit $1000?
Gold has often been seen as a safe haven investment in troubled times and UBS, the leading stock market giant, would appear to agree with this comment. The company has released a study on the price of gold suggesting a rise from $700 an ounce to more than $1000 an ounce during the course of 2009 as more and more investors look for those "safe haven" investments.
The fact that gold was one of the best performing investment assets during 2008 and looks likely to follow suit in 2009 perfectly reflects the ongoing concerns in investment markets around the world. Those looking for a change in the economic environment could do worse than watch the price of gold which has historically reflected investor confidence and pessimism in equal measures.
There is no doubt that 2009 will be a challenging year for stock markets around the world as economists look for light at the end of the tunnel and the end of the worldwide recession. However, those looking for a sharp turnaround are likely to be disappointed with governments around the globe struggling to contain deteriorating economic conditions and seeing reduced tax receipts. Governmental debt around the world has increased substantially in 2008 and is set to follow suit in 2009 leading to eventual tax rises in the not too distant future.
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