Recent Gallup survey found that the American public thinks that the safest long term investment available to them today is gold. Here’s the breakdown of the survey:
28% chose gold
20% chose real estate
19% chose CDs
19% chose stocks/mutual funds
8% chose bonds
6% chose other/no opinion
This same survey was done in August of 2011 when the price of gold was near its all time high and 34% of those surveyed chose gold at that time. Because gold still holds the top spot after being much lower 8 months later, I would not be surprised to see the 34% number exceeded when gold is at $1900 again.
The gold market is a relatively small market and as money managers and the public become more engaged in the yellow metal, the price will make new highs along with the miners.
I don’t expect this dollar bounce to last too long, maybe a week at the most. That should give traders a few more chances at the miners at these lower prices.
With Europe falling back into recession and the US slowing, our prediction of more liquidity programs seems virtually assured.
Got gold?
Have a great trading day!