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Investors have already lost trillions of dollars for the last couple of months and are now getting heavily engaged into seeking a safe haven for their money. As usual this turns out to be gold. The precious metal has served as a store of value during the previous recessions; it will definitely do it once more. So the gold rush has begun. What will be the result? Price of gold will go up. Last quarter results on growth are even worse than the results from the previous three quarters, which indicates that things are not going in the right direction yet. Obama says that the crisis will go deeper and analysts claim that the worst part of the recession is still ahead of us. If this is so, then people have a good reason to worry about the future of their money. That is why they choose to save. However, with these low interest rates and high bankruptcy rates in the bank sector, people choose to trust the most trustworthy thing around – GOLD. When I first noticed economists speaking of a possible recession some five-six months ago the price of gold was $730. I began to look around and inform myself on the economic indicators of recession. And it was more than obvious that the recession was already a fact. I stopped watching the evening news because there they would say that we are doing great even though some problems seem to be emerging in the economies of most countries. Prime minister of Bulgaria said that the recession will pass us by without even touching us, and few minutes after that the news guy would say that the workers from at least five different sectors of the economy are initiating strikes because they are losing their jobs. Of course this has nothing to do with a recession… What was more ridiculous is that most people did not notice these paradoxes. Then I explained to my roommate that if I were a wealthy investor I would buy gold because its price will definitely go up. He asked why. Because people will wake up pretty soon and will start buying gold to protect their savings in the best possible way. Naturally, many people noticed the same thing I had noticed and started buying gold. The current price of gold is $930. Fortunately for those who believe in gold, things are not going to get any better soon, which means the price of gold will go even higher. It may surpass the $1000 limit by more than a hundred.
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