Gold futures, as well as silver rates and other precious metals, strike a record excessive as major economic shifts within the U.S. And abroad occurred. Marketwatch reports that gold went over $ 1,400 per ounce for the first time on the Comex of the New York Mercantile Exchange, a new history. Monday trading saw gold futures hit a high of $ 1,407.20. Source for this article – Gold futures hit record high, investors urged to jump in by Personal Money Store.
Gold started by going down
Monday showed that over the weekend from Friday's closing price of $1,397.70 per ounce, there had been a drop in gold futures. $10 was how much it went down. There was also a raise in currency value. This was for the dollar of course. There was a historic lift though in gold, silver and copper prices because of the European debt in Greece, Ireland and Portugal.
Sector goes crazy with Federal Reserve bond purchasing
In the next eight months, the Federal Reserve can be spending $600 billion in bonds. This has caused many people to start buying precious metals rather than keeping all of their paper money. The currency values are not all heading down. This is what Marketwatch explains. The United States of America Dollar rose .5 percent against rival paper currencies. Due to underperformance from Greece, Ireland and Portugal bonds, the euro was lost.
The significance of the gold standard
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 market expectations about inflation, deflation and future currency values" could help set up a better economic yard still, 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 still a thin industry into a more orderly one." Currency values being tied to something more tangible would make the values more important.
Greater silver and copper rates too
Based on Marketwatch, silver rates went up. Meanwhile, copper prices rose to $3.96 per pound in December delivery figures.
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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