Gold and silver prices have been hitting record prices as investors continue to worry over the numerous financial issues. Concern over the European debt crisis and inflation has pushed gold prices close to $1500 and silver to $40, the highest it has been in 31 years. The increase in price for gold and silver may also be due to the United States budget dilemma, as the deadline for the budget deal comes closer. The dollar slid in value, thus making gold and silver less expensive for other currencies.
Investors often buy gold and silver as a safeguard against economic problems, seeking an alternative investment through economic uncertainty. A survey by Bloomberg found that 15 out of 18 traders, investors and analysts predicted that bullion, precious metal in bar form, would rise this week. Analyst Yingxi Yu said to Reuters, “The commodities market seemed to have regained a life of its own…so far this year commodities are relatively unshaken by bad news on the macro front.”