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Resource Clips

Posts tagged ‘record’

Another Day, another Record Gold Price

August 22nd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningIn what analysts are now calling a parabolic ascent, gold reached a new record today of $1,894.80 an ounce, Bloomberg reports. “Gold is strong in any and all currency terms, and it is now entering that stage when prices go parabolic,” said economist Dennis Gartman.

Other analysts were hedging their predictions. The Financial Post quoted Dundee Wealth economist Martin Murenbeeld saying, “I suspect that there is one hell of a correction to this most recent surge in the not-too-distant future. Yet such a correction will likely depend upon policy actions that policymakers are very reluctant to take. Meanwhile the crisis is rapidly widening, indeed with a rapidity equal to the steepness of the rise in the gold price.”

Murenbeeld added that the US and European fiscal crises could push gold past $2,400 an ounce by 2013 or sooner, surpassing the inflation-adjusted record of 1980.

While gold climbed 33% this year, silver rose 41%, reaching $44.055 today. “Silver is like a beta version of gold, but I think overall the market is simply looking for alternatives,” said Dominic Schnider of UBS AG. Platinum hit a three-year high of $1,894.50 an ounce and palladium $753.

The metals’ gain resulted from currencies’ pain as the yen and Swiss franc joined the dollar in its descent. Some speculators believe Japan and Switzerland will try to boost exports by devaluing their currencies.

by Greg Klein

Gold hits $1,880 as Markets tank

August 19th, 2011

Amid increasing concerns about the global economy, gold set another record price today, Bloomberg reports. This morning’s COMEX index saw gold open at $1,854 before reaching a high of $1,880.90. It was the longest run of weekly gains since April 2007.

“Gold is the currency of the world at the moment, with the world convinced that the monetary and fiscal authorities are likely to do nothing right and everything wrong when it comes to resolving the world’s current fiscal problems,” said economist Dennis Gartman.

Job numbers and home sales in the US fell, as did stock markets across Europe and Asia, while concerns rose about sovereign debt crises.

Gold has risen 31% in 2011, its 11th year of a bull market that’s the longest since at least 1920.

“Medium term, the disorder of the global monetary system and long-term inflation threat will amplify gold’s nature as a currency and an inflation hedge,” said China International Capital Corp analyst Cai Hongyu.

A Bloomberg survey suggested gold will continue its ascent next week. But the metal has yet to reach its inflation-adjusted price of $2,300, set during the panic buying of 1980.

by Greg Klein