Gold soars to new all-time record on fears of financial instability

Wednesday, October 7th 2009 - 05:17 UTC

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The price of gold has hit a new all-time high of 1,043.77 US dollars an ounce after a decline in the greenback boosted the attractiveness of metals to investors. Copper prices also rose above 6,000 USD a ton, as the weaker dollar made metals cheaper for non-US investors. Read full article

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neil rogers
I suspected some time ago that more than one country holding large stocks of $US were desperate to get rid of them. China and the oil producing countries are obviously buying Gold and paying for them in US$.
By doing this they, firstly: unload their US$ without flooding the money markets and causing a panic sell off of US$ thus causing a rapid drop in the value of the US$.
Secondly: they are buying a secure, useful easily traded commodity.
Thirdly: it opens the door for them to dump the US$ as a reserve currency and change over to the Euro.

President Obama must be a worried man right now.
Oct 08th, 2009 - 03:01 am - Link - Report abuse 0
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