Wednesday, October 7, 2009

Gold Jumped to Record High Today

Picture from goldsilver.com

It beats the $1033.90 record set in March 2008.

And we ain't see nothing yet!

“Gold is acting like the ultimate currency,” said Chip Hanlon, the president of Delta Global Advisors Inc. in Huntington Beach, California.

“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.”

“Gold is not just seen as an inflation hedge here in the U.S. but is rather acting as a hedge against all currencies,” said Dan Greenhaus, the chief economic strategist at Miller Tabak & Co. in New York. “As your currency depreciates in value, the consumer has less purchasing power and therefore it costs more to buy the same number of goods. Gold in inflation-adjusted terms is well below its highs.”

Think everyone is jumping on to the gold bandwagon yet? Unfortunately, (or fortunately for investors), not yet. For every 3 of these dudes above (they're called gold bugs by the anti-gold crowd) supporting higher gold prices, there'll be 1000000000 people opposing them.We will know gold mania has come to town when the media starts to talk about it everyday.

Silver is gonna follow soon. Other commodities will do well too. Read Jim Roger's books if you want to know more. He also talks about why many people shun/look down on commodities. He's a multi-billionaire investor based in Singapore.

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