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All That Glitters - The Gold Rush
by Joseph Ernest September 22, 2010
Newscast Media --For the fifth consecutive session, gold hit a record high after the Federal Reserve signalled it was on the verge of injecting fresh cash into the economy, which knocked the dollar as investors shifted to gold.
American Eagle Gold Bullion Coins made by the US Mint and have a higher resale value, as for gold bars, PAMP Suisse gold bullion bars made by the PAMP Mint, are the way to go.
Several people purchase gold for different reasons. If one is looking at investing, one should stay away from the Numismatic coins which are traditionally for collectors and would sell for about one third of the purchase price.
Another precious metal that gained traction is Silver, which also hit a 2-1/2 year peak and edged closer to its highest in 30 years as investors sought cheaper safe-haven assets, which was reflected in the largest one-day inflow of metal into the iShares Silver Trust in 10 months.
Spot gold hit a new record of $1,296.10 an ounce and was bid at $1,293.75 an ounce at 1357 GMT, showing a 0.6% gain on the day. U.S. gold futures rose $21.00 an ounce to $1,295.30, having hit a contract high at $1,298.00.
The metal is benefiting from concerns over the stability of the financial system and the outlook for fiat currencies. While dollar weakness, a typical driver of gold, is lifting prices, the metal's appeal as a safe store of value has broadened.
"This is not just about the dollar any more," said Pau Morilla-Giner, senior portfolio manager and head of alternative investments, equities and commodities at London & Capital..
"This is about any currency that is used and generated in a country with massive dislocations, an excess of sovereign debt and a weak banking system. And now, for the first time in history, all major Western currencies have that problem."
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