Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

IMF’s Managing Director Gives Credibility to a Stronger Price of Gold

Commodities / Gold & Silver 2009 Nov 26, 2009 - 09:50 AM GMT

By: Miles_Banner

Commodities

Best Financial Markets Analysis ArticleGold soars ahead with news from politicians that governments will continue to poke and prod our economies in order to stimulate them. Well what happens when you poke and prod a dog? It bites back.


Gold reached a new UK record on Tuesday climbing to £709.1 per ounce. Fantastic news for all the gold bugs out there, its been some time in the making (March 09) since it last peaked against the pound.

And this morning the gold price also climbed to a new high in dollars, reaching  $1,195 per ounce.

How are Governments stimulating the price of gold?

On Tuesday the chief honcho of the IMF (international Monetary fund), Dominique Strauss-Khan, voiced his opinion on government stimulus and when it should be stopped,

“A premature exit is the main danger,”

“We have to be sure that the recovery is final, that domestic demand is self-sustaining and the peak in unemployment is on the foreseeable horizon.”

This is fabulous news for all the gold investors out there. It’s practically a green light, from one of the most respected global financial establishments, for governments to stimulate their economies.

How does that affect the gold price?

Well governments of late have been particularly fond of stimulating their economies by printing money, otherwise known as quantitative easing.  This in turn devalues their currency as there’s more of their currency in circulation.

When their currency has been devalued people look for ways to offset their depreciating money, a safe haven.  This is where gold steps in.

As an internationally accepted form of currency, it is the perfect option for governments and folk alike to invest in when their own currency is deflating. This is why we have seen it rocket in recent months from $850 in January to $1,179 an ounce today.

The Dollar’s Slippery Slope

The dollar index – a measure of how the dollar fairs in comparison to 6 other currencies, slid further down its slippery slope, hitting its lowest price in 15 months!

So for us gold enthusiasts its great news surely!! Well it would be if the economy wasn’t in such a dire way.

John Paulson’s new gold fund

John Paulson, the notorious hedge fund manager, has announced he intends to invest $250m (£149m) in a brand spanking new gold fund!

Yes the man famous for winning millions on betting on the collapse of the sub-prime mortgage catastrophe now has his eyes set on Diggers gold. In fact this is not the first time the American has teetered into the yellow metals domain. Of his vast treasure chest, standing at a cool $30 billion, Mr Paulson has invested 10 percent in gold related investments.

More Governments buying bullion

Our Neighbours, Russia, in the northern hemisphere look to be following the footsteps of China and India. The Russian Central bank increased its gold holdings by 2.6 percent last month.  Alexei Kudrin, finance minister at Gokhran, a state owned precious metal repository, claimed Gokhran intended to sell 30 tonnes of the yellow metal to the Russian Central Bank by the end of the year.

As the Gold Price continues its assent, we’ll show you what’s happening and why.

Until next week,

Digger
Gold Price Today

P.S Digger writes a weekly email analysing the gold price and the gold industry. Visit Digger at Gold Price Today (http://goldpricetoday.co.uk).

© 2009 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules