Thursday, November 17, 2005
Gold Hits 18 Year Highs
Bloomberg has a report on golds' new lofty levels. "Gold rose to the highest in almost 18 years in New York. Demand for gold coins, bars and bullion-backed shares rose 56 percent in the third quarter, the producer-funded World Gold Council said today. Gold sold in dollars has rallied 11 percent this year, heading for a fifth-straight annual gain."
"Gold for December delivery rose $7.80, or 1.6 percent, to $486.90 an ounce on the Comex. Investors and jewelers bought $12.5 billion worth in gold, or 838 metric tons in the third quarter, up 7.6 percent from a year earlier, the London-based World Gold Council said. Jewelry demand accounts for 73 percent of gold consumption."
"The Philadelphia Stock Exchange Gold & Silver Index of 13 producers, including Newmont Mining Corp., rose 2.02, or 1.8 percent, to 116.31 at 2:03 p.m.. The index has climbed 17 percent this year."
"Gold may reach $500 an ounce by the end of the year, Paul McLeod said. Some investors may sell for a profit when the metal reaches the $490s, he said. Gold last climbed above $500 an ounce on Dec. 11, 1987. Gold futures surged to $873 an ounce in 1980, when U.S. consumer prices rose more than 12 percent from the previous year."
"The announcement by the U.S. Federal Reserve on Nov. 10 that it would stop reporting data on the broadest measure of the money supply, or M3, triggered gold's rally this week, said James Turk. 'Not reporting M3 is the equivalent of General Motors not reporting how many cars it produces,' Turk said. 'The misstep will only hasten the rush out of dollars into the safety and security of gold.'"
"'The dollar's move up should not delude us into thinking the dollar is actually stronger,' Darda said. 'There seems to be a global move out of paper and into gold, likely the result of the major central banks of the world keep short rates too low for two long.'"
"Gold for December delivery rose $7.80, or 1.6 percent, to $486.90 an ounce on the Comex. Investors and jewelers bought $12.5 billion worth in gold, or 838 metric tons in the third quarter, up 7.6 percent from a year earlier, the London-based World Gold Council said. Jewelry demand accounts for 73 percent of gold consumption."
"The Philadelphia Stock Exchange Gold & Silver Index of 13 producers, including Newmont Mining Corp., rose 2.02, or 1.8 percent, to 116.31 at 2:03 p.m.. The index has climbed 17 percent this year."
"Gold may reach $500 an ounce by the end of the year, Paul McLeod said. Some investors may sell for a profit when the metal reaches the $490s, he said. Gold last climbed above $500 an ounce on Dec. 11, 1987. Gold futures surged to $873 an ounce in 1980, when U.S. consumer prices rose more than 12 percent from the previous year."
"The announcement by the U.S. Federal Reserve on Nov. 10 that it would stop reporting data on the broadest measure of the money supply, or M3, triggered gold's rally this week, said James Turk. 'Not reporting M3 is the equivalent of General Motors not reporting how many cars it produces,' Turk said. 'The misstep will only hasten the rush out of dollars into the safety and security of gold.'"
"'The dollar's move up should not delude us into thinking the dollar is actually stronger,' Darda said. 'There seems to be a global move out of paper and into gold, likely the result of the major central banks of the world keep short rates too low for two long.'"
# posted by Ben Jones @ 12:49 PM 
