Monday saw another massive drop in prices on the stock market in the U.S. and around the world. By the end of the trading day on Wall Street, the Down was down more than 600 points. Today could be yet another financial disaster for investors in the stock market.
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The drop in stock prices was expected after the 500+ point drop in the Dow on Thursday and a volatile day of trading on Friday. To compound matters, the U.S. Credit rating was downgraded from AAA to AA+ by Standard and Poors on Saturday. The credit downgrade by S&P may have been the “nail in the coffin” for the markets, already struggling after all of the squabbling in congress over the debt ceiling.
Gold prices hit new record highs on Monday as the price of Gold topped $1700 per ounce. Investors around the world sensing the global instability of stock markets, as well as global economies, are pulling their money from the markets and buying gold like never before.
Silver prices also continue to climb, reaching over $39 per ounce on Monday. For investors forced out of profitability by high prices in the gold market, the more affordable price of silver is an attractive option to protect their investments. Investors with smaller portfolios are dropping out of the stock market and buying silver if they are not able to buy gold.
The price of silver is still forecast to climb to the $100 per ounce mark in the near future. As gold gets closer to $2000, this will likely force more investors to turn to buy silver in order to see strong gains on their investments.
Oil prices dipped down into the low $80’s with all of the movement on Gold, Silver and the stock markets. The price of oil appears to have stabilized and is expected to climb again.