Gold futures hit record as European bond sector collapses

There is a definite connection between currency values and the price of precious metals, and if today’s movement on gold futures is any indication, the world is experiencing a major shift. 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 NY Mercantile Exchange. Monday trading saw gold futures hit a high of $ 1,407.20. Resource for this article – Gold futures hit record high, investors urged to jump in by Personal Money Store.

Gold went down a bit at first

Friday's closing price on gold futures, which was $1,397.70 per ounce, went down $10 when Monday rolled around. The dollar went up in its currency value too. There had been 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 will be spending $600 billion in bonds. This has brought on numerous individuals to start buying precious metals instead of keeping all of their paper money. Marketwatch explains that currency values aren't going down too much. Against other paper currencies, the United States Dollar rose .5 percent. Due to underperformance from Greece, Ireland and Portugal bonds, the euro went down.

A gold-standard once more

The G20 conference in Seoul, South Korea is a place that World Bank President Robert Zoellick suggests the gold standard be discussed. A Financial times piece is where Zoellick talked about this. He said, "Employing gold as an international reference point of sector expectations about inflation, deflation and future currency values" in making an economic yardstick available.

James Cordier, a portfolio manager at Optionsellers.com agrees. A standard of gold would "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.

More individuals want silver and copper also

According to Marketwatch, silver prices went up. The Dec delivery figures are up too on copper. $3.96 per pound is now the price.

Citations

Marketwatch

marketwatch.com/story/gold-retreats-silver-keeps-on-rallying-2010-11-08

Is it government manipulation – or luck?

youtube.com/watch?v=-eIIS0itYiI