Gold No Longer Safe To Invest

TEMPO.CO, New York - Gold prices continued to decline, as the current gold investment is therefore not the prima donna. Gold Investment is now too risky and the corresponding assets like stocks and other commodities. So far as gold as a safe haven now begins to fade.

Gold luster grow dimmer after the price fell below U.S. $ 1,600 per ounce. Precious metal prices fell in overnight trading around U.S. $ 35 per ounce trpy its so touching its lowest level since the beginning of the year as a stronger U.S. dollar (U.S.) and the ongoing concern of the political upheavals in Europe.

Commodity price of gold for June contract fell U.S. $ 34.6 (2.1 percent) to a level of 1604.5 per troy ounce in New York commodity exchanges overnight. The gold price had actually fallen by over U.S. $ U.S. $ 1,595.5 per ounce. Sian Asia electronics market, the price of gold back down $ 12.1 (0.75 percent) to U.S. $ 1592.4.

The price of gold in today's logammulia.com Rp 534 000 per gram, lower than the price at the beginning of last March, which had reached Rp 560,000 per gram.

The price of gold has risen in recent years with the strength of the euro against the U.S. dollar. Gold (the safest place to park, to mutual funds) as a safe harbor considered because it is safe from the pressures of inflation and deflation that makes the price had risen above the level of U.S. $ 1,900 per ounce.

But now the popularity of gold as a safe harbor began to fade, the price continues to fall below $ 1,600 per ounce. Europe's protracted debt crisis and the slowdown in global economic recovery, making gold less attractive.

If the new European crisis began, gold becomes the target of investors to avoid the risk held that the price goes in the last 11 years. "Now the price of gold was not able to pitch alone and should be a close fight with other asset markets to be," said Andrew Wilkinson from, economic strategist at Miller Tabak & Co..

The decline of the yellow metal prices can not be separated from the stronger U.S. dollar against the euro. With the strengthening dollar gold price would be expensive for investors who hold currencies other than dollars. Dollar index against six major currencies closed higher overnight rivals 0.134 points (0.17 percent) to a level of 79.849. Asia and the market to bounce back this afternoon, 0.261 points (0.33 percent) to a level of 80.11.

"The volatility of the dollar only as a weaker euro can be seen," said Adrian Ash, BullionVault Head of penelirit. "But the effect on stock markets, commodities, and most sharply in the precious metal is to spread. Currently there is a fear that the investment is very high at all," he said.

The U.S. dollar strengthened against the euro tends to be as secure as the local investors to invest in order after the elections in several European countries. Moreover, after French President Nicolas sakozy are still in power was defeated by a challenger from the Socialist Party, Francois Hollande.

The decline in gold prices lead to falling prices of other metals. Silver futures for July fell 66 cents contract (2.2 percent) to U.S. $ 29.46 per troy ounce. This level is the lowest price since January.

Platinum prices also fell $ 21.8 (1.4) percent to U.S. $ 1,508.3 per ounce. Palladium prices also corrected USR 24.95 (3.9) percent to U.S. $ 622.85 per troy ounce. and copper prices also shrunk 10 cents (2.5 percent) to U.S. $ 3.68 per pound.