Gold Price: How America’s debt ceiling affects the gold price

Gold Investment - 1 August 2011

Investors who own gold are excited about the gold price, which is affected by the debt ceiling issue. In the last 7 months, gold has increased in value by close to 14 percent and has reached highs of $1,614.40 per ounce. In one day the price of gold went up a whopping $12.09. In contrast, the stock market has only increased by 8 percent for the year as measured by the Dow Jones.

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Another factor that has significant influence on the price of gold is that there are concerns that the American government might default on its payments come August 2nd. This is the day that the Treasury expects the American government to run out of funds.

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Invest in precious metals today! Contact us for details.

While there is conjecture as to what will occur if the credit limit cannot be raised, most investors are of the belief that the stock market will not handle a default very well. This is why many of the investors are looking towards gold as an investment. The struggle to get the credit limit increased has caused tension in America and around the world.

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