There is a definite connection between currency values and also 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 high of $ 1,405 early Monday on the Comex of the NY Mercantile Exchange. Gold reached a peak of $ 1,407.20 in Monday trading.
Gold went down a little in the beginning
Trading began Monday with a loss of as much as $10 from Friday’s closing price on gold futures ($1,397.70 per ounce). There had been also a raise in currency value. This was for the dollar of course. But dark clouds of European debt – particularly in Greece, Ireland and Portugal – massed on the horizon, giving gold prices, silver prices and even copper prices a historic lift.
Changes within the sector with the Federal Reserve bond getting
Numerous buyers decided that selling paper currency and switching to precious metals was a good idea considering the Federal Reserve decided to buy $600 billion worth of bonds within the next eight months. The currency values aren't all going down. This is what Marketwatch explains. The United States Dollar rose .5 percent against rival paper currencies. The euro, however, experienced a marked decline, thanks to bonds from Greece, Ireland and Portugal came under performance pressure.
Re-instituting a gold standard
World Bank President Robert Zoellick has suggested the re-institution of the gold standard ought to be a topic of significant discussion at the upcoming G20 conference in Seoul, South Korea. "Employing gold as an international reference point of sector expectations about inflation, deflation and future currency values" could go a long way toward establishing a practical economic yardstick, said Zoellick in a recent Financial Times op-ed piece.
James Cordier, a portfolio manager at Optionsellers.com agrees. A standard of gold would "stabilize gold and turn what is nevertheless a thin sector into a more orderly one." Not only that, however currency values would benefit, as it would be tied to something to something more tangible.
Seeing increased silver and copper amounts
Silver prices went up to $27 an ounce, Marketwatch explains. Meanwhile, copper prices rose to $3.96 per pound in Dec delivery figures.
Articles cited
Marketwatch
marketwatch.com/story/gold-retreats-silver-keeps-on-rallying-2010-11-08
Is it government manipulation – or luck?
youtube.com/watch?v=-eIIS0itYiI
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