When Nothing Else Matters, Gold Does!

Gold has long been perceived by many to be a long term investment safe heaven. Some even think that the timing in buying gold is not important, as the metal always tend to appreciate in value over time, especially when all else fails.

Yesterday was a classic example where the price of gold shot up by a whopping 10% in one day, due to investors switching to this piece of classic metal as a result of the worsening global investment climate triggered by the worsening US Financial crisis and credit crunch! A number of high profile takeovers and bankruptcies in the U.S. have certainly caught the attention of global investors in terms of guessing which financial institution may be the next to fall from grace! So instead of putting up with the risks, the theme of yesterday's sentiment appeared to be "liquidate first, decide later". Which explains why global markets (led by Down Jones) had another free fall yesterday.

Nevertheless, bear in mind that the price of gold has fallen by around 25% from mid July 2008 to about USD740/ounce recently. It is no coincidence that gold prices dipped after the recent major correction of crude oil prices and the recent appreciation of US Dollars. For the smart investors, many had exited gold upon the anticipation on crude oil movement. Who says timing is not important?




Some analysts even claim that yesterday's rise could potentially spell another major bullish trend for the price of gold. If you believe in this prediction, perhaps it's right time to buy gold again?