Gold sets sights on $900 as funds remain active buyers

Source: Gulf News

Gold surged to a record high just under $900 an ounce yesterday, powered by heavy buying by investment funds and helped by rising oil prices and a strong debut for Shanghai gold futures.

Platinum also set a lifetime high on positive fundamentals and tracking gold's rally. Silver touched two-month highs and was not far from its highest level in 27 years.

Spot gold jumped to $891.40 an ounce, surpassing the previous record of $881.10 reached on Tuesday. It was quoted at $885.0/$885.80 at 1133 GMT, from $878.10/$878.90 in New York late on Tuesday.

"This is an extension of the ongoing rally with very strong underlying interest in buying gold across geographic locations," said David Holmes, director of precious metals sales at Dresdner Kleinwort investment bank...

Read more: http://gulfnews.com/business/Commodities/10180734.html

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$1000 Gold anyone?

I'm definitely not saying that you are pumping gold. But as you know, there sure are a whole lot of places pushing it for the wrong reasons. Fears of inflation, currency devaluation, and other issues are valid.

There are now commercials on TV trying to get people to send their old "junk" gold jewelry and such in to be turned into cash.

I have a feeling that a lot of the sites promoting the purchase of gold are not doing it for the technical reasons to do so, but to herd people into bidding it up so they can sell later. I've seen ads telling people to buy gold now before it hits X. Not because it's a sound investment or that it has other uses, but to ride a potential wave.

All that said, I'm glad I saw this all coming, and got in at under $400 for gold and under $5.00 for silver. :-)

I divested my portfolio of Gold stocks during the last peak in Nov.


Investors have to be careful here as with any bubble... CAVEAT EMPTOR


However, what it does represent is complete and utter disdain for the $ at the moment.

I haven't sold the gold because I haven't thought of a better place to put the money yet that I feel will do better in the near term.

I don't see the dollar becoming stronger all of a sudden since we're not seeing any national policies to create jobs and production which can be used on items for export, etc.

Those jerks are constantly trying to fleece people out of their gold.

I'll be sending my dozens of scrap S.S. Central America gold coins over right away for recycling.

These stupid coins are old, so they must be scrap.

:-)

were unloading stores of gold? And some of the "experts" were saying that the days of gold were numbered?

also gold exploration company stocks ...