15 SEP 2010
Gold has surged to a new high as the prospect of inflation reared its ugly head in the United Kingdom on bad news from a report indicating a weaker-than-expected eurozone industrial production. Germany and France, despite sovereign debt fears, have been able to manage anemic growth but today’s data signals a slow down.
On Tuesday the gold price traded as high as $1,261.90 and as low as $1,246. “The U.S. dollar index was adding 0.03% to $81.90 while the euro was losing 0.19% to $1.28 vs. the dollar. The spot gold price was rising $14.30, according to Kitco’s gold index,” writes Alix Steel for The Street.
Silver also experienced a boost today. The precious metal was up 14 cents to $20.31. Earlier this month, spot silver trading reached its highest point since March 2008.
“While silver has many of the same investment attributes as gold, it enjoys the added advantage of industrial demand. And as a currency alternative, silver is more practical. It’s been used as a currency, most notably by the United Kingdom (pound sterling). The French word for money is argent, or silver. In fact, the United States and Great Britain were both on a silver standard up until the 1800’s,” explains Gabriel Wisdom, writing for Forbes on September 8.
Market observers believe silver prices will soon rise on speculation that JP Morgan is in the process of winding down its proprietary trading operations. “In the past years, compelling evidence of silver and gold price manipulation by JP Morgan has been found,” writes Elisheva Wiriaatmadja.
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