As the uncertainty over the financial condition of the world grows it comes as no surprise that investors are choosing to put their money into safe options such as gold and treasury bonds.
Gold could hit the $2,000 mark
There are suggestion from City analysts that Gold could hit the $2,000 mark before the year is out. That means it is predicted to rise from its current position of $1829.70, already a current high for the precious metal.
New figures for the price of gold show that had Gordon Brown not sold 400 tonnes of gold back in 1999 for £2.3 billion, Britain would have been £12 billion richer today.
US Treasury Bonds
Investors are avidly searching for a safe haven in this current economic climate and although they are hard to find they do exist.
US Treasury bonds are near the centre of interest at the moment as many feel that this is their safe option despite the large scale economic problems the US are facing.
The demand has been such for ten-year US Treasury bonds that the yield has dropped by 2% for the first time in almost 60 years, with investors happy to accept lower interest rates instead of the volatile equities market.
A point to note is, the last time government bond yields dropped by 2% was during the Great Depression, instigated by the Wall Street Crash of 1929.