Money and Metals

CNN Money reports on the days metals markets. "Gold awoke from a week-long slumber to hit a new 25-year peak on Friday as investors actively bought metals again, pushing platinum to its highest level in nearly 26 years. After starting the week setting new highs, gold traded quietly until late on Friday afternoon when it suddenly jumped 1.5 percent to score a fresh peak of $556.50."

"Platinum, used mainly to clean auto exhaust emissions, rose largely on speculative buying, although worries about supply are also a support to the market, dealers said. 'The recent move above $1,000 is mostly driven by speculative buying,' Barclays Capital said in a report."

"Platinum demand has now outstripped supply for eight straight years, thanks to robust consumption by car manufacturers in Europe where diesel engines continue to gain market share. Until recently, only platinum could be used for both diesel and gasoline catalysts."

"Silver was hot on gold's heels, gaining just over two percent to $9.20 from $9.00. 'I hear there is some quite good buying in investment products and we are seeing very good demand for bars here,' one German trader said."

"Investor interest in exchange-traded gold funds (ETFs) has soared since the end of 2005. These products, traded on some of the world's major stock exchanges, give investors a share of a bar of gold. Analysts estimate the five ETFs now hold some 384 tons of gold, equivalent to the gold reserves of Russia."

"'Gold is more and more becoming an insurance policy against any type of disruptive risk and most portfolio managers believe that gold is an asset which should not be missed in their portfolios,' Frederic Panizzutti."