Stock Market Down, Gold Price Up, Why ?

When stock market goes down, why gold price goes up ? because investors, especially stock investors, need to move their fund from stock markets. There are two alternative Invest Tool: certificates of deposit ( CDs ) and gold investment.

1. certificates of deposit

When stock market is going down, the Fed usually cuts the interest rate. So if investors invest in CDs, they will get less return.

2. Gold Investment

Gold is a good investment, because in the long run gold price usually goes up and it's a liquid investment tool.

In normal condition, investors tend to split their investments in CDs and gold. But when financial firms, such as banks, are in crisis, so investors are reluctant to invest in CDs. Most of investors move their fund from stock market to gold investment. This is why gold price goes up while stock market goes down. http://goldinvesttool.blogspot.com/

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