Gold futures hit record high, buyers advised to jump in

Gold futures hit a new history as the global economic scene continues to boil with turmoil. According to Marketwatch, Gold for Dec delivery went up $ 7.20 per ounce to an all-time excessive of $ 1,405 early Monday on the Comex of the New York Mercantile Exchange. It soon peaked at a high of $ 1,407.20 per ounce.

Gold went down a little at first

Trading started Monday with a decrease of as much as $10 from Friday’s closing price on gold futures ($1,397.70 per ounce). Not coincidentally, the currency value of the dollar rose. There had been a historic lift though in gold, silver and copper prices due to the European debt in Greece, Ireland and Portugal.

The Federal Reserve’s bond buying excursion spun the market like a top

Numerous investors decided that selling paper currency and switching to precious metals had been a good idea considering the Federal Reserve decided to buy $600 billion worth of bonds within the next eight months. Yet currency values are not in complete free fall as yet, accounts Marketwatch. Against other paper currencies, the U.S. Dollar rose .5 percent. Because of underperformance from Greece, Ireland and Portugal bonds, the euro went down.

Re-instituting a 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 will be where this happens. A Financial times piece is where Zoellick talked about this. He said, "Employing gold as an international reference point of market expectations about inflation, deflation and future currency values" in making an economic yardstick available.

James Cordier, a portfolio manager at Optionsellers.com agrees. We'll see what a global gold standard does. It could "stabilize gold and turn what is nevertheless a thin market into a more orderly one." The value of currency would be more accurate also. It would be tied to something tangible which helps.

Silver and copper prices also shot up

Marketwatch reports that silver rates went up toward $27 an ounce. The Dec 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

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