Eventually, financial markets began to understand the severity of the debt crisis. Stock market sales accelerated as investors rushed to dispose of risky assets to move their cash to safety.
During the recent sale on the stock exchanges, the price of gold also fell and many media seized the moment to declare gold as another risky asset.
But is it really worth worrying about the falling price of gold along with stocks? By no means! The slight drop in gold amid a nearly $ 200 increase since July 1, 2011 is nothing compared to active stock sales. The key factors affecting the rise in the price of gold not only remain relevant, but have intensified further as the debt crisis puts all paper assets at risk and irrevocably.
The bullish gold market remains unshakable. The biggest drop in gold prices in this decade occurred during the 2008 financial collapse, when gold fell $ 250, but then rebounded rapidly. For investors with long-term investment in gold, the fall in 2008 was not noticed in the context of long-term trends. Although the price of gold fell 25%, many other assets suffered three times more losses than gold.