The price of gold surged around the world Tuesday, as investors looked for something – anything – safe to invest in to avoid the turmoil of shaky financial markets.
Hitting at one point $1,251.85 an ounce on the London Bullion Market, as well as $1,254.50 in U.S. gold futures (for August delivery), the metal also hit all-time highs in euros, Swiss francs and sterling.
The price surge comes in the wake of economic fears across the European Union, as various nations struggle with extreme debt loads, leading some investors to worry about inflation, governmental defaults and even the stability of the euro zone.
Still, there is one skeptic when it comes to the long-term reliability of gold investments. Robert Prechter, president of Elliott Wave International, told the Reuters Investment Outlook Summit in New York that the gold could easily plunge 40 percent if the European debt crisis sparks full-blown deflation.