Gold Hits All-Time High for British Investors
While there is now much talk about gold making an all time high above $850 an oz. for British investors, in terms of Pounds Sterling, gold has already made an all time high.
The gold market actually made its all time high in Pounds on October 29, 2007. Trading above $794 per ounce, the metal recorded a Morning Fix of £385.12 in London – beating the previous all-time high of £382.73 made on 12th May 2006 – before dropping 0.8% from the top as the Wall Street open drew near.
In US Dollar terms gold closed at $807 last Friday so it is not that far away from the all time high price of $850 oz. achieved in Jan. 1980.
Gold will probably make highs far above the old record of $850 this bull market cycle. The fall of the US Dollar, which may well turn into a true panic sell off at some point within the next year or two, is helping to support higher prices. With nothing backing up the value of the dollar except for decreasing faith in the US government the future of the dollar looks to be bleak.
Physical demand continues to be strong for gold. The expanding economies of China and India have increased the number of people in those countries who can regularity add to their gold holdings. Demand has generally been strong , even at higher prices, across most of Asia and the Mid East.
We are probably not far from a push to $850 in the gold market. While a move to $850 and slightly above would probably bring some short term selling into the market, after a brief pull back we likely will see much higher prices. $1,000 an oz. is not an unreasonable forecast within the next six months.
Some gold bug analysis are already talking about prices well above $2,000 an oz. Hopefully, that forecast will not be achieved as if it did it would probably coincide with a world of trouble far beyond the present world of trouble.
However, that said even at $800 plus you probably should be buying some gold. Just in case.  Â
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Once again gold hit some record highs this week, and central banks around the world are planning rate cuts.
Hi Money for Gold,
Thanks for visiting and for your comment.
Yes, these days the central bankers seem to want to please the politians more than worry about inflation and price stability. It’s an ill wind brewing in world financial markets.
Should be super bullish for gold though.