Raising anxieties due to the sluggish growth in the US as well as Chinese economies, the ever-worsening sovereign debt catastrophe in the Eurozone, in addition to the S&P’s US credit rating downgrade Friday are all placing much of the worldwide investors’ community into a situation which was never experienced before.
The present economic environment in the western world is an indicative of the 2008 Crash and the much understandable panic that we’re again approaching towards the Great Recession 2.0 that drove down markets around the globe all over again Monday morning. Excepting the expensive metals markets where gold prices broke its past record of $1,700 an ounce to reach a high of $1,721.70 close at $1,718.20 an ounce. Silver prices also surged up, although not as much high as gold’s. The white metal hit a high of $39.85 an ounce, and closed the day at $39.13 an ounce. Silver price only increased 1.85 percent compared to gold’s 3.23 percent, an indication that the market is showing the chance of reduced industrial demand as suggested by the declining price of crude oil as well as base metals like copper.