I mentioned this would happen sooner rather than later. This shouldn’t come as any big surprise. Watch the money.
NEW YORK (CNNMoney.com) — Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe’s debt crisis and the pace of the global economic recovery.
Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold closed at a fresh record high of $1,248.70 an ounce Thursday.
NEW YORK (CNNMoney.com) — Foreign governments have been getting in on the recent gold rush, driven by continued fears about Europe’s debt crisis and the pace of the global economic recovery.
Those concerns have been propelling the precious metal to record highs over the past 18 months. In fact, gold closed at a fresh record high of $1,248.70 an ounce Thursday. Central Banks Join Gold Rush
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Well, when there are more buyers than sellers, prices go up
I just wonder how long tis will last in the face of lowering demand from traditional sectors such as the jewellry market, but as long as central banks and other players are diversifying into gold as a risk hedge, this game has a long way to go.
Kevin,
Keep in mind that people said the same thing about the stock market (Dow Jones) when it was at 1,000 in 1980. At the time people were having “Dow 1k Parties” This was after the general equities market was in a prolonged multi year bear market, from around 1966 – 1980.
The forces at work in gold are beyond what most want to even comprehend. Not saying you, but most people’s thought process goes something like ‘Gold must be in a bubble because it’s acting like RE or 95-00 tech.
Bonds, as a whole aren’t attractive and they’re not safe. Anyone who bought bonds from 1980 to 2005-7-8 hardly ever lost money, because they were in a secular bull. Going forward anything beyond a 5-7 year maturity will get scalped, once the titanic is done turning and rates rise without pause.
What is happening in the global currency markets – like the Euro, overburdened debt obligations across the board, is not resolved overnight. Gold will be in play for years to come as these things are secular in nature. They’re not worked out yet.
People either adapt or they find someone or something to blame or complain about.