Saw this on another thread. Cut out a few things but none about gold. Just makes you wonder where WGR is heading..
Gold Jumps to Record as Inflation Outlook Fuels Investor Demand Share | Email | Print | A A A
By Nicholas Larkin, Pham-Duy Nguyen and Kim Kyoungwha
Oct. 6 (Bloomberg) -- Gold rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth.
Gold futures climbed as high as $1,038 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.6 percent against a basket of six major currencies.
“Gold is acting like the ultimate currency,” said Chip Hanlon, president of Delta Global Advisors Inc. in Huntington Beach, California. “Central banks are following the same monetary course and trying to stimulate and inflate their way back to growth. Everyone’s concerned about the dollar, but it’s not like you can hate the dollar and fall in love with the euro or the yen.”
Gold futures for December delivery climbed $17, or 1.7 percent, to $1,034.80 an ounce at 9:36 a.m. on the Comex division of the New York Mercantile Exchange. Prices may reach $1,400 within six months, Hanlon said. Gold for immediate delivery in London gained as much as 1.9 percent to a record $1,036.60. The metal gained 17 percent this year.
“Gold has just begun its ascent,” said John Brynjolfsson, the chief investment officer of Armored Wolf LLC, a hedge fund in Aliso Viejo, California. “As central banks print more and more money, the private demand for gold as an investment and inflation hedge is destined to grow. It’s pretty clear that gold will be at $2,000 by 2012, and it could happen a lot faster.”
An ounce of gold now buys about 60.3 ounces of silver in London, according to Bloomberg data. That’s down from a high of 84.4 ounces on Oct. 10, which was the most since March 1995.
WGR Price at posting:
45.0¢ Sentiment: LT Buy Disclosure: Held
