Friday, May 7, 2010

Superior Gold Group - Stock market turmoil gives gold a boost

Recent setbacks in the stock market and with currencies like the euro have investors consulting with silver and gold dealers about precious metal opportunities.

The closely-watched euro zone debt problem is proceeding with few clear outcomes, as some financial analysts warn that the future of the currency itself could be at stake if budget problems in Greece, Portugal and other countries are not cleared up.

The stock market shed almost 350 points on Thursday amid investor concern about whether the Greek bailout package would be sufficient to stem an emerging sovereign debt crisis. Countries with high debt levels may be at increased risk for default if their borrowing costs are forced higher by concerns about their credit viability.

With these things in mind, a report from notes that gold went past the $1,200 per ounce mark on Thursday because investors were looking for a safe haven in light of fears in the stock market. Gold has long served as a safe haven investment during times of economic uncertainty.

The financial website also noted that gold prices have now hit their highest point since December 4, and that prices could eventually start to approach last year's high of $1,230 per ounce.