Gold hits record high
18 Jul, 2011 20:42
$1,603.40. That’s the price it’s going to cost you for an ounce of gold today, and if it seems like a pretty hefty price, that’s because it is — gold is at an all time high.
Monday’s cost-per-ounce marked the eleventh consecutive rise in gold prices this trading season, which also puts the precious metal at its highest dollar amount ever. Last week’s high of $154.90 had set the previous record.This doesn’t necessarily mean things are going good for the US economy, however, so don’t get your hopes up — it’s actually quite the contrary. Federal Reserve Chairman Ben Bernanke suggested that the Fed might be in the market for some gold purchases in the near future as the dollar weakens, which many are saying has caused a surge in demand and thus cost."I think people are coming to realize that the economy is weakening again and the government might see a need to try to stimulate the economy further," Joe Foster, portfolio manager for the Van Eck Global International Investors Gold Fund, tells CNN.EverBank World Markets President Chuck Butler adds to the sentiment, saying that the rise in price is a result of fears of the economic crisis only worsening. "We've had no shortage of people saying there is going to be Armageddon if the debt ceiling isn't raised,” Butler tells TheStreet.com.Adjusted for inflation, today’s high still falls short of the price of gold back in 1980. In January that year, the cost of an ounce hit the equivalent of $2.261.33 today, as inflation plagued the country.