Gold Reaches New Record Highs and Silver Reaches Record 30 Year Highs on U.S. Dollar Weakness

By: GoldCore

Gold rose to new record nominal highs and silver to 30 year nominal highs again this morning as the dollar weakened and there were renewed concerns that large banks may have to raise more capital. Gold's rise is not solely a dollar story with gold rising to near record nominal highs even in the safe haven currencies of the yen and Swiss franc. Gold rose to 112,537 yen an ounce in trading in London this morning, the highest price since June 28.

Gold is currently trading at $1,376.70/oz, €977.70/oz, £859.60/oz.

Cross Currency Rates at 12:30pm GMT.

Gold prices in India, the largest Importer and consumer of bullion, surpassed 20,000 rupees ($453) per 10 grams for the first time, spurred by gains in global prices of the metal. Demand in India and throughout Asia has remained robust in recent days despite the record nominal highs. Gold prices in euros (see chart) have begun to move up again despite the recent euro strength against the dollar. With the challenges facing the Eurozone economy and the European Monetary Union far from over, gold in euros will likely reach new record nominal highs again if the euro again comes under pressure.

Gold in EUR - 180 Days (Daily).

The challenges in the eurozone are likely to see gold in euro terms play catch up with the dollar gold price in the coming months. Gold's appreciation in euro terms has been even more gradual than gold in dollar terms since 2000 with an annual return of just 11% per annum.

Gold in USD, Gold in EUR - 10 Years (Daily).

Silver surged 3% yesterday and is up another 1.5% today. The gold silver ratio continues to fall with one ounce of gold now buying just 56.5 ounces of silver. Silver remains less than half of its nominal record high of 30 years ago and is attracting value buyers.
The ratio of gold to silver dropped to the lowest since August 2008 as investors sought a protection of wealth in the metal that may also benefit from economic growth. The ratio is now the least since before the collapse of Lehman Brothers Holdings Inc. in 2008. It remains well above the ratio in 1980 of 15 ($850/$50) when the Hunt Brothers cornered the very small silver market.

Silver

Silver is currently trading at $24.31/oz, €17.26/oz and £15.18/oz.

Platinum Group Metals

Platinum is trading at $1,705.50/oz, palladium is at $595/oz and rhodium is at $2,175/oz.

This update can be found on the GoldCore blog here.

Mark O'Byrne
Director

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.