Gold futures hit history high, buyers advised to leap in

There is a definite connection between currency values and the price of precious metals, and if today’s movement on gold futures is any indication, the world is experiencing a major shift. Marketwatch accounts that gold went over $ 1,400 per ounce for the very first time on the Comex of the New York Mercantile Exchange, a new history. Gold reached a peak of $ 1,407.20 in Monday trading.

Gold futures began the morning on downhill incline

Friday's closing price on gold futures, which had been $1,397.70 per ounce, went down $10 when Monday rolled around. The dollar went up in its currency value too. Of course the European debt in Greece, Ireland and Portugal is quite bad right now. This is why a historic lift in gold, silver and copper rates happened.

Market goes crazy with Federal Reserve bond purchasing

Numerous investors decided that selling paper currency and switching to precious metals was a good idea considering the Federal Reserve decided to buy $600 billion worth of bonds within the next eight months. The currency values aren't all heading down. This is what Marketwatch explains. The United States of America Dollar rose .5 percent against rival paper currencies. The euro, nevertheless, experienced a marked decline, thanks to bonds from Greece, Ireland and Portugal came under performance pressure.

Having another gold standard

World Bank President Robert Zoellick has suggested the re-institution of the gold standard ought to be a topic of severe discussion at the upcoming G20 conference in Seoul, South Korea. A Financial times piece is where Zoellick talked about this. He said, "Employing gold as an international reference point of market expectations about inflation, deflation and future currency values" in making an economic yardstick available.

James Cordier, a portfolio manager at Optionsellers.com agrees. A global gold standard could "stabilize gold and turn what is nevertheless a thin market into a more orderly one." Currency values being tied to something more tangible would make the values more essential.

Increased silver and copper rates too

Based on Marketwatch, silver prices went up. The Dec delivery figures are up too on copper. $3.96 per pound is now the price.

Citations

Marketwatch

marketwatch.com/story/gold-retreats-silver-keeps-on-rallying-2010-11-08

Is it government manipulation – or luck?

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