The huge rally came after the government moved overnight to rescue troubled insurer American International Group Inc. with an $85 million bailout loan. The Federal Reserve stepped in after AIG, teetering on collapse from losses tied to the subprime crisis and the credit crisis, failed to find adequate capital in the private sector.
The emergency measure came a day after Lehman Brothers Holdings Inc., a 158-year-old investment bank, filed for bankruptcy after failing to find a buyer.
Fearing more tightening of credit markets, investors reacted swiftly and began dumping stocks and socking money into gold, silver and other safe-haven commodities. Gold is especially attractive during times of crisis because the metal is known for holding its value.
Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said buying accelerated as rumors spread across trading floors that another financial firm may be in trouble.
Here is one thing to contemplate: 15 August 1971 the United States cut loose its currency completely from the gold anchor that had stabilised it since 1792.
At approximately the same time, people of the United States cut themselves loose completely from the scriptural anchor that had stabilised the country from its very beginning.
The subsequent economic and social volatility are blatantly evident on any graphs tracking such things. Each was a form of “I am my own god,” a sin dating back to the Garden.
Why is anyone surprised by the results?
Bart,
Me thinks your reaching a bit.
ICXC
John
Gold – honest money for honest people.