Record Gold rises to maxima of all the times
07-12-2010 golden marketGold rises to maxima of all the times!
The historical record of the gold dates back to 07-12-2010 to 1.432,50 Dollars the ounce.
The golden price has touched the few one on Tuesday, the 07-12-2010th, historical maxima to 1.432,50 Dollars (intradía Comex) the ounce in the contracts with expiration in February, 2011 due to the suspicion to the currency Dollar, and being impelled by his investment character I shelter in epoch of crisis and stock-exchange falls, overcoming this way the previous golden records.
Record Prayed in Dollars - 07-12-2010
A record quotation of the gold must be understood as a result about the suspense of the markets by the economic recession and the fear of a marked inflationary upturn with the half term for the side effects of the plans of economic stimulus and the injections of liquidity.
The golden tenancy is considered to be one of little forms of preserving the wealth and to the proper patrimony during the worst financial crisis from the Big Depression.
In particular, the golden ounce, traditionally considered like a value refuge before the inflation, has reached his maximum record to 1.432,50 Dollars, because the investors are afraid that the enormous bundles of economic stimulus and bank rescue of the United States and Europe possibly debilitate to the Dollar and cause inflation. That does that the persons look for sure refuges, what is reflected in the entry in gold.
One hopes that the prices of the gold should touch this year 2010 new maxima. The consensus is that in the long term all the rescues that we see, it is in the automotive industry, the bank industry or others will generate inflation and that would be positive for the gold.
Evolution Boasted I pray in Dollar - from 1975 to 2010
Evolution Boasted I pray in Dollar - Last 10 years
Evolution Boasted I pray in Dollar versus Dow Jones from 1985 to 2010
Why is inflation afraid the (hiper)?
The golden demand is increasing at the time that the debt of the American Government touches record levels and the Federal Reservation (FED) supports the interest rates close to 0 %.
Experience of the past:
The USA in March, 1980: The inflation rose to an annual valuation of 14,8 %, after a previous increase of the gold throughout the 4 previous years and to have touched a record for 873 Dollars in January, 1980.
Current consequences:
Dan Greenhaus, economic strategist chief of Miller Tabak and Co in New York, said: "The gold predicts the inflation instead of being a coincidental indicator judging by his upward gust before 1980. At present there is nothing that he says that the inflation will rise to historical maxima. But the gold can rise much more from here. If the growth returns, the inflation also will do it.”
“The Government of the USA will have to accept an inflation more raised to reactivate the economy.”, said Frank McGhee, principal operator of Integrated Brokerage Services LLC in Chicago.
Francisco López, of of X-Trade Brokers, assures and concludes on the increase of the monetary offer, on the part of the principal economies of the whole world, to reactivate the economy: "This has an effect boomerang. When really an economic recovery is stated, the inflation is going to rise strongly, there are going to be the prime matters those that turn into refuge and the gold is going to be one of the principal assets.”
Marc Faber, president of the signature of advice and management of funds Marc Faber Limited: "The inflation generated by the efforts of the Federal Reservation (FED) to prop the American economy up will bring terrible long-term consequences. The Government increases the money supply as earlier it had never done it, what will reduce the foreign investments in the United States and will debilitate more the quotation of the dollar. When there is inflation in the system — defined by a growth of the offer of money and of the credit — the coins weaken. If you have a problem that arose like result of an excessive growth of the credit and the indebtedness in the system, it is not possible to solve it accumulating even more debt.”
Daniel Sack, agent of Investec Global GSF Gold in Citywire, says: "The price of the record gold (in real terms) only has come to half of his previous maximum, after the rally lived in the last 8 years. If it it fits for the inflation, the previous historical maximum of 1980 for 850 dollars would be equivalent to 1.844 current dollars.” According to the different estimations, the number changes, and following John Williams de Shadow Government Statistics the real price of the gold ssría in approximately 7.267 dollars the ounce.
The gold has risen to more of the triple in the last 8 years, in which the Dollar fell down 67 % opposite to the Euro.
Alan Greenspan advertió already in 1966:
“The abandonment of the gold standard made possible that the estatistas were using the bank system as an instrument for an unlimited expansion of the credit. Without gold standard, there is no way of protecting the savings against the inflation.”
Next, key information on the history of the quotation of the gold from the decade of 1970:
* I wither, 1971 - The president of that time of the United States, Richard Nixon, eliminates the parity of the dollar with the gold standard current with minor modifications from the Agreement of Bretton Woods of 1944, which established a valuation of fixed conversion for an ounce troy of gold for 35 dollars.* In August, 1972 - the United States devaluates the dollar to 38 dollars for golden ounce.* In March, 1973 - Most of the big countries adopt a system of floating exchange rate.* In January, 1980 - The gold touches a record for 850 dollars for ounce. A strong inflation for the high oil price, the Soviet intervention in Afghanistan and the impact of the Iranian Revolution they do that the investors get overturned to the metal.* I wither, 1999 - The gold falls down to minimum for 251,70 dollars for fear to which central banks limit his reservations in golden ingots and the mining companies bandage gold to be protected before the landslide of prices.* In November, 2005 - Gold overcomes the few one 500 dollars for the first time from December, 1987, when it touches 502,97 dollars.* On May 12, 2006 - The prices of the gold rise to 730 dollars for ounce. Funds and investors inject money into the prime matters for the regression of the dollar, a rise of the oil prices and political tensions for the nuclear ambitions of Iran.* On March 13, 2008 - Contract of referential gold quotes to more than 1.000 dollars for the first time on the American futures market.* On March 17, 2008 - Gold to the few one reaches his historical record for 1.030,80 dollars for ounce. The future Americans also touch a record for 1.033,90 dollars.* On September 17, 2008 - Gold to the few one raises almost 90 dollars for ounce, the biggest profit in one day, because the investors who look for a sure refuge in the middle of a collapse of the markets of actions.* On February 20, 2009 - The American futures of gold and the few gold overcome 1.000 dollars again for ounce. The investors resort to the gold in moments in which big economies enter recession and the stock markets collapse.* On October 05, 2009 - George Soros:
“A few banks are the brake of the United States practically in bankruptcy!”.
The popular investor George Soros has joined the voices that they exclaim that the recovery in the United States is going to be slow and painful. Nevertheless, from his point of view, the principal culprits are a few almost broken “” financial institutions.NEW RECORD OF THE GOLD
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* 07-12-2010:
TO 1.432,50 DOLLARS INTRADIA.
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* 09-11-2010:
TO 1.424,30 DOLLARS INTRADIA.
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* 08-11-2010:
TO 1.413,30 DOLLARS INTRADIA.
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* 05-11-2010:
TO 1.398,00 DOLLARS INTRADIA.
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* 04-11-2010:
TO 1.393,40 DOLLARS INTRADIA.
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* 14-10-2010:
TO 1.387,80 DOLLARS INTRADIA.
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* 13-10-2010:
TO 1.375,70 DOLLARS INTRADIA.
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* 07-10-2010:
TO 1.366,00 DOLLARS INTRADIA.
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* 06-10-2010:
TO 1.351,00 DOLLARS INTRADIA.
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* 05-10-2010:
TO 1.342,60 DOLLARS INTRADIA.
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* 01-10-2010:
TO 1.320,80 DOLLARS INTRADIA.
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* 30-09-2010:
TO 1.315,80 DOLLARS INTRADIA.
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* 29-09-2010:
TO 1.312,50 DOLLARS INTRADIA.
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* 28-09-2010:
TO 1.308,70 DOLLARS INTRADIA.
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* 24-09-2010:
TO 1.301,30 DOLLARS INTRADIA.
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* 23-09-2010:
TO 1.297 DOLLARS INTRADIA.
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* 22-09-2010:
TO 1.297 DOLLARS INTRADIA.
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* 21-09-2010:
TO 1.291 DOLLARS INTRADIA.
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* 20-09-2010:
TO 1.284,80 DOLLARS INTRADIA.
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* 17-09-2010:
TO 1.282,50 DOLLARS INTRADIA.
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* 16-09-2010:
TO 1.277,70 DOLLARS INTRADIA.
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* 14-09-2010:
TO 1.274,80 DOLLARS INTRADIA.
TO 1.268,70 AT THE END OF THE MARKET.
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* 21-06-2010:
TO 1.266,50 DOLLARS INTRADIA.
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* 18-06-2010:
TO 1.260,90 DOLLARS INTRADIA.
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* 08-06-2010:
TO 1.252,40 DOLLARS INTRADIA.
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* 14-05-2010:
TO 1.249,50 DOLLARS INTRADIA.
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* 12-05-2010:
TO 1.238 AT THE END OF THE MARKET.
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* 11-05-2010:
TO 1.232,50 DOLLARS INTRADIA.
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* 03-12-2009:
TO 1.226,10 DOLLARS INTRADIA.
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* 02-12-2009:
TO 1.217,90 DOLLARS INTRADIA.
TO 1.212,50 AT THE END OF THE MARKET.
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* 01-12-2009:
TO 1.201,63 DOLLARS INTRADIA.
TO 1.196,00 AT THE END OF THE MARKET.
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Sources:
GFMS Ltd, World Council of Gold, Department of Investigation of Prime Matters, database Reuters.
Jeffrey Nichols, Administrative Manager of American Precious Metals Advisors:
“I believe firmly that the gold is going to rise very much, much more in the next years, at levels that many people think that they are unimaginable. But the markets do not climb in constant form over a lot of time and, when the whole world jumps on board, surprises can appear”.
Related article: Record prayed in Euros
07-12-2010
