Gold Prices Soar as Investors Flea Stocks

Today was one heck of a day as the price of gold hits $1000 an ounce again and the Dow drops over 100 points to the low 7000's.  Investors around the world are tired of seeing their money erode in paper assets, and with the weakness in the Euro as a result of the economic decay in countries like Ireland and Greece dragging on the rest of Europe people are looking for the stability that only gold can offer during times like this.  It is amazing to look at some of the major U.S. companies that have seen huge drops in capital, companies that were powerhouses only a year ago such as Bank of America which has dropped from $196 billion to less than $25 billion and General Electric which was close to $350 billion last year to roughly $100 billion now.  Gold prices on the other had have soared in recent months.  With the kind of capital destruction that many have witnessed in their portfolios, one wonders how long it will take for people to ever gain the trust to invest in paper assets again.  Would you rather have your assets priced in paper or priced in gold after all.  Gold has been a store of value far longer than paper assets have in history.  As a matter of fact gold is still being found today in the tombs of Egyptian mommies.  Compare that to the longevity of paper stocks.