Despite the best efforts of governments, central banks and financial institutions, public confidence in the world economy continues to erode. Repeat reassurances to savers that their money is safe and the banks are solid are not being heeded.
As one French equities trader said: “I think the most important thing in this crisis is to regain confidence banks and depositors alike.” Only one European government, Ireland, has put into laws full guarantees of bank depositors’ money.
It has been criticised as disproportionate, but this Irish bank customer seems pleased with his government’s actions when he said: “They are gonna walk us through this so that’s it. I feel a lot safer.”
The financial crisis has boosted business for precious metals traders. Some are selling, cashing in as the gold prices rise, others are buying, worried about their money in banks:
Gold trader Patrick Merson said: “I have been doing this job for 30 years, and, for the first time I’m seeing a real atmosphere of fear and people now are not even interested in making a profit they just want to hang on to what they’ve got.”
As the economic news became gloomier, the price of gold rose 6% in September, but experts warn that in the past it has been a poor long term investment and when the crisis ends people could find themselves with an asset that’s falling in value.