Gold at new record again, silver closes on 30 year high
Gold at new record again, silver closes on 30 year high
The surge in precious metals prices continued overnight and this morning with gold making ever-new all-time highs and silver at around the best levels for thirty years.
Author: Lawrence Williams
Posted: Friday , 17 Sep 2010
LONDON –
After its breakthrough to a then new high point earlier this week, gold consolidated for all of a day at lower levels before continuing to surge upwards and this morning was only 1.4% below achieving the $1,300 many of the more conservative forecasters had predicted as a top for the year. If the surge continues that kind of level could be achieved very soon indeed, and continuing momentum could lead to even more optimistic levels being achieved in 2010.
Meanwhile gold’s less costly sister, silver, has been quietly getting very close to the $21 high point last seen in March 2008 – and is actually already above the high COMEX and LBMA settlement points of that month. The gold:silver ratio, which many analysts make a point of following, has come down a little further too to just over 61 at the time of writing indicating that silver’s momentum is even better than gold’s, but it had been having difficulty breaking through the $21 psychological level this morning, but if gold continues its upwards movement that level will be surpassed vey soon – it may even have happened by the time this article is published and read. While still well short of its all-time high of close on $50 of 1980 when the market was hugely manipulated by the Hunt Brothers, silver is at around the highest levels since that volatile year.
Silver price movement this week
The upwards moves have taken place as realisation has gathered that, despite politicians’ assurances to the contrary, the West’s economic malaise is continuing. Eurozone debt problems have resurfaced; U.S. economic data is far from encouraging as statistics fail to impress; money printing by governments is still poised to increase at an alarming rate; even Germany’s seeming recovery from recession now looks less firm than it did on some disappointing growth figures.
In short markets are nervous and the recession seems to be very definitely L shaped at best with double-dip talk gaining prominence again. The big investors are running scared and gold, and silver, are again seen as being the safer option to stocks and shares.
