The Price of Gold and Bankruptcy
Bankruptcy Trends and the Price of Gold
This week the price of gold hit an all time high (again). Gold hit just over $1,300 an ounce. Analysts have long looked to the price of gold to determine economic trends. What can the price of gold tell us about bankruptcy trends?
The price of gold generally tells us whether the economy is doing well or not so well. The reason for this is because during tough economic times those who have disposable income will seek safety in gold and get out of their dollars. The price of gold also is an indicator of inflation rates. A high inflation rate means the Federal Reserve is creating money and pumping it into a fledgling economy. An all time high in the price of gold tells us that the government’s stimuli and the Federal Reserve’s quantitative easing are not working. Gold continues to go up because the economy is getting no better.
This week’s all time high in the gold price tells us that there is more economic troubles ahead. The housing market, in spite of all of the government’s bills to stimulate jobs, save Wall Street banks, and bail out the housing consumer, has not recovered and recovery is no where in site. The commercial real estate market is a bubble just waiting to burst. The price of gold knows this which is why it keeps going up and up.
You can bet, therefore, that bankruptcies are only going to increase, not decrease. In fact, our opinion is that we have not even seen the beginning of the bankruptcy crisis. Although more and more Utahns are filing for bankruptcy we believe that the trend will only up.
At Salcido Law Firm, we are bankruptcy attorneys. When these tough times only get tougher, we’ll be there to help everyone possible start fresh with a bankruptcy filing, whether Chapter 7 or 13. Call us at 801.413.1753 for more information or email us to schedule a free consultation.