Feb. 5 (Bloomberg) -- Gold rose the most this week on speculation the global recession will boost demand for precious metals as a store of value. Silver also gained.
Goldman Sachs Group Inc. said yesterday gold will rise to $1,000 an ounce within three months, up 43 percent from the bank’s previous forecast. Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose to a record 859.5 metric tons yesterday. Gold has rallied 35 percent since reaching a 13-month low on Oct. 24.
“Gold is telling you that all paper assets are suspect,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “As the recession deepens, there’s significant flows into gold as an asset class or a currency that cannot vanish overnight.”
Gold futures for April delivery rose $18.90, or 2.1 percent, to $921.10 an ounce at 9:16 a.m. on the Comex division of the New York Mercantile Exchange. A close at that price would be the biggest gain since Jan. 30. The price rose 1.1 percent yesterday.
Silver futures for March delivery climbed 33 cents, or 2.6 percent, to $12.80 an ounce on the Comex. The metal declined 24 percent in 2008, while gold gained 5.5 percent.
*If an investor would purchase gold at US$950 right now and this report is right then there would be a 50$ capital gains per ounce. Better gains than the bank, I would suppose.
No comments:
Post a Comment