Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Correct into Bitcoin Happy Thanks Halving - Earnings Season Buying Opps - 4th July 24
24 Hours Until Clown Rishi Sunak is Booted Out of Number 10 - UIK General Election 2024 - 4th July 24
Clown Rishi Delivers Tory Election Bloodbath, Labour 400+ Seat Landslide - 1st July 24
Bitcoin Happy Thanks Halving - Crypto's Exist Strategy - 30th June 24
Is a China-Taiwan Conflict Likely? Watch the Region's Stock Market Indexes - 30th June 24
Gold Mining Stocks Record Quarter - 30th June 24
Could Low PCE Inflation Take Gold to the Moon? - 30th June 24
UK General Election 2024 Result Forecast - 26th June 24
AI Stocks Portfolio Accumulate and Distribute - 26th June 24
Gold Stocks Reloading - 26th June 24
Gold Price Completely Unsurprising Reversal and Next Steps - 26th June 24
Inflation – How It Started And Where We Are Now - 26th June 24
Can Stock Market Bad Breadth Be Good? - 26th June 24
How to Capitalise on the Robots - 20th June 24
Bitcoin, Gold, and Copper Paint a Coherent Picture - 20th June 24
Why a Dow Stock Market Peak Will Boost Silver - 20th June 24
QI Group: Leading With Integrity and Impactful Initiatives - 20th June 24
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Back Near Record Nominal Highs in EUR and GBP

Commodities / Gold & Silver 2009 Nov 19, 2009 - 06:15 AM GMT

By: GoldCore

Commodities

Best Financial Markets Analysis ArticleGold reached new record nominal highs in dollars yesterday and reached $1,146/oz overnight and has since pulled back slightly. Gold is currently trading at $1,136/oz. In EUR and GBP terms it is trading at €764/oz and £680/oz respectively.



The poor housing data from the US and President Obama's warning regarding the surging US public debt led to falls in equities, bonds and the dollar yesterday as gold reached new record nominal highs at over $1,150/oz. Importantly and significantly, gold is also back near record highs in EUR, GBP and many major currencies (gold's record nominal high in euro is €782/oz and in sterling it is £690/oz - London PM Fix on 20/02/09). Thus, gold is not 'cheaper' in other currencies as it is rising in all currencies in the last week, month, YTD, 1 year, 5 year etc. (as per EUR and GBP Performance tables below).

Similarly, the last time gold was in a bull market and rose 25 fold in dollar terms, was in the 1970s - but it also rose massively in sterling (£20/oz to £300/oz), German marks and in all major currencies. Concerns about the long term outlook for the value of fiat currencies and of the threat of inflation is leading many investors and savers internationally to look to have an allocation to the store of value and financial insurance that is gold. While there are concerns about the dollar, it is important to remember that there are also concerns regarding the value of the euro, sterling, yen and other currencies due to the ultra loose fiscal and monetary policies being pursued internationally, and yet it is estimated that allocations to gold remain less than 1% of global assets suggesting that talk of a gold rush and gold mania is overstated and there is room for further diversification into gold.

Demand for gold remains robust, especially investment demand, with the World Gold Council reporting that demand for gold has gone up 15% in the third quarter (from Q2 09) to 800.3 tonnes. Investment demand (excluding central banks' demand) was down from the third quarter last year but it should be remembered that demand for gold in Q3 08 was at record levels. While jewelry demand remains weak, investment demand remains robust with government mints and refiners recording record sales and with hedge funds, pensions funds and central banks all looking to gold's store of value qualities.

Silver
Silver touched $18.56/oz overnight. Silver is currently trading at $18.26/oz, €12.28/oz and £10.94/oz. Silver looks like it has broken out technically and the very favorable supply and demand fundamentals (see our Commentary section) will likely see silver comfortably back above $20/oz by year end. Silver remains a fraction of its nominal high in 1980 and remains very undervalued from a historical perspective.

Platinum Group Metals
Platinum is currently trading at $1,445/oz and palladium at $370/oz, while rhodium is trading at $2,600/oz.

This update can be found on the GoldCore blog here.

The Bullion Services Team

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

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'

GoldCore Archive

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


Post Comment

Only logged in users are allowed to post comments. Register/ Log in