Gold futures strike a new record as the global economic scene continues to boil with turmoil. According to Marketwatch, gold futures eclipsed $ 1,400 per ounce for the first time on the Comex, a sign that currency values are in an excellent deal of flux. Monday trading saw gold futures hit a high of $ 1,407.20. Article source – Gold futures hit record high, investors urged to jump in by Personal Money Store.
Gold begun by going down
Monday showed that over the weekend from Friday's closing price of $1,397.70 per ounce, there was a drop in gold futures. $10 had been how much it went down. Not coincidentally, the currency value of the dollar rose. But dark clouds of European debt – particularly in Greece, Ireland and Portugal – massed on the horizon, giving gold prices, silver prices and even copper prices a historic lift.
Changes in the market with the Federal Reserve bond buying
In the next eight months, the Federal Reserve can be spending $600 billion in bonds. This has caused many people to start getting precious metals instead of keeping all of their paper money. The currency values aren't all heading down. This is what Marketwatch explains. Against other paper currencies, the United States Dollar rose .5 percent. Due to underperformance from Greece, Ireland and Portugal bonds, the euro went down.
The gold standard being restarted
The ides of reinstating the gold standard is something that World Bank President Robert Zoellick thinks needs to be discussed. Hopefully, the G20 conference in Seoul, South Korea could be where this happens. Zoellick said, "Employing gold as an international reference point of sector expectations about inflation, deflation and future currency values" could help set up a better economic yard nevertheless, accounts a Financial Times piece.
James Cordier, a portfolio manager at Optionsellers.com agrees. A standard of gold would "stabilize gold and turn what is nevertheless a thin industry into a more orderly one." Currency values being tied to something more tangible would make the values more essential.
More people want silver and copper also
They are closer to $27 an ounce now. The December delivery figures are up too on copper. $3.96 per pound is now the price.
Articles cited
Marketwatch
marketwatch.com/story/gold-retreats-silver-keeps-on-rallying-2010-11-08
Is it government manipulation – or luck?
youtube.com/watch?v=-eIIS0itYiI
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