Commodities, such as gold bullion, should be the place to go for investors escaping the dollar in the current economic climate, it has been claimed.
The dollar hit a new low today (March 17th), continuing its three-year decline as investment in gold hits a record high.
Following the announcement that JPMorgan Chase is to buy rival investment bank Bear Stearns for a remarkably low price, investors again rushed to store their assets in gold as a reliable commodity and long-term safe haven, reports Forbes.
Consequently, gold prices soared to $1,032 an ounce as the dollar sank to its lowest in 12 years against the yen. Prices were also pushed up by continuing record oil prices, according to the magazine's website.
Jim Rogers, chairman of Rogers Holdings, told Bloomberg of his faith in commodities over currency.
"Throughout history, the place to be, under duress, is in real assets," he said. "Everyone listening should get out of the dollar."
Commodities like gold are in their seventh year of price gains, thanks to global inflation and the cutting of interest rates by the US Federal Reserve.
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