Gold and silver hitting two-decade highs

Both gold and sliver cracked highs that they hadn’t seen in two decades today. Gold hit the high $580s and silver was above $11.50. (Disclaimer: I own a little of both.)
Some reasons why the shiny metals are getting shinier, according to the news:

Buying by funds
Speculation surrounding a silver ETF coming on board
Increased demand in India and China
Falling output at some mines
Buying by central banks
Currency depreciation

Both gold and silver still have a ways to go before they hit their all-time highs. They have even further to go if you adjust for inflation. My crystal ball is in the shop like everyone else’s, but if you’d like a good discussion of gold, check out Gary North’s free newsletter series on gold. (Check the sidebar under Free Materials.)

You can get price information on gold and silver, as well as palladium and platinum, from Kitco. Also, Monex has bullion coin price quotes.

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6 Responses to “Gold and silver hitting two-decade highs”
By Dus10 on Mar 31, 2006 | Reply

A big reason is the decreased value of the U.S. Dollar. And that is not considered a bad thing, people. Beyond petroleum, a reduced value does many things for us. For starters, it will be more cost effective to buy American goods, and this is the case whether you are an American, or a foreigner. This means our trade deficit will reduce, and we won’t be buying as much from China/India. Also, in increases the value of precious metals. Go buy some metal and hope the U.S. Dollar declines… you will be rich.
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By gold commodity on Jul 22, 2011 | Reply

That’s not the sort of market summary that thrills very many folks, except, perhaps, about 99% of the folks who read The Daily Reckoning. But even Daily Reckoning readers like to see the stock market go up sometimes…and they usually don’t mind much if the dollar doesn’t fall.

Nevertheless, successful investing is never about what you would wish; it is about what you expect.

Despite their wishes, for example, your editors here at The Daily Reckoning have been expecting for a very long time that gold would go up and the dollar would go down, while most other investible assets went nowhere. That Big Picture call has been pretty much on target for more than a decade, and your California editor sees no good reason to alter course…or speed.

On second thought, you may want to alter speed a bit. You may want to acquire gold, silver and other hard assets more briskly than before.

Read more: Why the Gold Price Continues to Hit Record Highs http://dailyreckoning.com/why-the-gold-price-continues-to-hit-record-highs/#ixzz1SpTBzoTd