June 14, 2010 - For those who have been advised to buy gold as an investment, it has been a hat trick week of nothing but profit. Yellow is the lucky color, especially after its record high of $1,254 an ounce last week. It makes sense to buy gold particularly now because, going by the current trends, this yellow metal is quite likely to continue to be strong and steady.
Along with gold, other precious metals also showed an increase in price through last week, with silver and palladium ahead of the others. Although stocks and oil are under pressure, the Dow did close on a positive note for the first week of the month, perhaps setting a trend for the whole month. Even European stocks registered an increase last week. In New York, as precious metals looked brighter, gold for August delivery jumped $12.50, ending up at $1230.20 per ounce.
Evy Hambro, the manager of Blackrock Investment Management Limited’s World Mining Fund remarked, "We’ve seen gold reassert itself as an alternative currency.” This is a great time to buy gold, since a genuine bull market for gold can result only when gold prices dominate in all currencies, and that is what the market is looking at right now.
James Moore, analyst with Thebulliondesk in UK feels that gold makes the ideal barometer to measure risk now, since investors are supporting the metal quite strongly. The demand for gold as the best investment continues, regardless of the current debt situation in Europe. London’s latest gold bullion prices are up at $1,220.00 an ounce.
John Halloran
Senior Gold Specialist - Buy-Gold.org
