GLOBAL FINANCIAL FEARS: Investors pump money into gold amid economic uncertainty

Tuesday, June 14, 2016
By Paul Martin

INVESTORS are ploughing cash into gold and other safe haven investments amid fears over the global economy.

Tue, Jun 14, 2016

The concerns have been sparked by a number of worldwide factors, including a decline in interest rate expectations in the US, according to experts.

As a result, demand has soared for investments that are traditionally considered a safe place to keep money in times of turmoil.

Investors are also unsure how the world financial system would look after a Brexit, and uncertainty always pushes nervous investors to safeguard money.

While Brexit would hit the stability of Europe, the global economy could still slip regardless of the outcome of Britain’s vote on Europe.

Gold prices are reaching their highest prices at around $1,280 an ounce, with experts saying the price could jump to $1,400.

During the economic crisis prices for the precious metal reached as high as $1,900.

At the same time, yields – or payouts – on trusted government bonds have fallen to record lows.

For the first time ever, German bonds (bunds) have turned negative – meaning investors are now in effect paying the German government to look after their cash.

UK government bonds (gilts) have also touched record lows in recent days.

Meanwhile, stock markets have plunged, as investors pull cash from riskier shares.

Experts say the fall in gilt yields is thanks to both Brexit uncertainty and concern for the global economy.

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