Gold Targets $1600 Per Ounce – New Nominal Record, Silver Surges 9% in 24 Hours as Dollar Falls

Gold is trading at $1,592.14/oz, €1,122.17/oz and £987.62/oz. 

Gold has risen to new record nominal highs at $1,594.45 per ounce and silver has surged another 3% to over $39 per ounce after yesterday’s 6% rise. Today’s London AM Fix gold fix was $1,592.50 £987.54 and €1,119.04 – all of which are new record nominal highs.

Cross Currency Rates

European stock markets are lower after Asian equity markets were mixed overnight with the Nikkei falling 0.27%.

European debt markets are under pressure this morning with Spanish and Italian bond yields rising towards 6% again.

Ireland’s 10 year and 2 year yields spiked to new record highs at 14.13% and 20.9% prior to sharp falls which had the hallmarks of sovereign intervention – possibly the ECB or China.

The U.S. had its Aaa bond rating placed on review for possible downgrade by Moody’s which cited the “rising possibility” that the debt limit won’t be raised on a timely basis. 

U.S. treasuries have also been sold this morning. Concerns that QE3 and the printing and electronic creation of hundreds of billions of dollars and Obama’s walkout from debt ceiling negotiations is not helping dollar and bond market jitters and has led to the record dollar gold price.

Ron Paul and Ben Bernanke: Is Gold Money?

Gold’s new record highs may also have been contributed to by the debate between Federal Reserve Chairman, Ben Bernanke and Presidential candidate Ron Paul at the U.S. House Banking Committee (see video here).

Dr. Paul asked about the collapse in the value of the dollar by almost 50% in the past three years to less than a 1,580th of an ounce of gold. 

“When you wake up in the morning, do you care about the price of gold?” he asked Mr. Bernanke.

“Well,” Bernanke replied. “I pay attention to the price of gold. But I think it reflects a lot of things. It reflects global uncertainties. I think the reason people hold gold is as protection against of what we call tail risks, really, really bad outcomes. And to the extent that the last few years have made people more worried about the potential of a major crisis then they have gold as a protection.”

Paul: "Do you think gold is money?"

Bernanke: "No. It’s a precious metal."

Paul: "Even if it’s been money for 6,000 years? Somebody reversed that and eliminated that economic law?"

Bernanke: "Well, you know, it’s an asset. Would you say treasury bills are money? I don’t think they’re money either, but they’re a financial asset."

Paul: "Why do central banks hold it if it’s not money?"

Bernanke: "Well, it’s a form of reserves."

Paul: "Why don’t they hold diamonds?"

Bernanke: "Well, it’s tradition. Long-term tradition."

Paul: "Some people still think it’s money." 

The Federal Reserve Chairman’s admission that gold is “protection” against “tail risks” and “really, really bad outcomes” is important and marks another step towards gold’s movement from being a fringe asset to being a core part of a properly diversified portfolio. 

Gold is increasingly being seen as an important safe haven asset and indeed currency (despite Bernanke’s feeble denial of this) and this interview may be seen as another landmark in gold’s move from fringe “barbaric relic” to mainstream investment and savings vehicle. 

SILVER 
Silver is trading at $39.25/oz, €27.66/oz and £24.35/oz. 

PLATINUM GROUP METALS 
Platinum is trading at $1,766.50/oz, palladium at $783/oz and rhodium at $1,925/oz. 

NEWS
(The Telegraph)  
Gold price hits all-time high on European debt crisis and US QE

(The Independent) 
Gold price hits record high as eurozone woes spread across Atlantic

(Reuters)
Gold hits record, extends gains to 9th day

(Bloomberg)
Gold Climbs to Record on Concern About Fed Stimulus, Europe’s Debt Crisis

(The Street) 
Ron Paul Attacks Bernanke on Gold

COMMENTARY
(You Tube)
Ron Paul vs Bernanke: Is Gold Money? – July 13, 2011 

(MarketWatch)
 A great day for gold — and the bugs (mostly) think more are to come 

(ZeroHedge) 
Moody’s Puts US AAA Rating On Downgrade Review

(The Telegraph) 
The countries with the largest gold reserves

(The Telegraph) 
How to invest in gold

(The Telegraph) 
Italy money supply plunge flashes red warning signals

 

 

 

 

Mark O'Byrne

Also on news-goldcore-com

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Tavi Costa- The Fed is Trapped

Silver Market Predictions – Ed Steer Talks about the Silver & Gold Price

Are We In A Financial Bubble? Peter Grandich Interview

Blog posts

Lawrence Lepard – Living in a World with Inflation

Lawrence Lepard Portfolio Manager and advocate of sound money, is our guest on this episode of GoldCore TV. With 40% of money in the US being created in the last 2 years, we ask Lawrence if the Fed is trapped. If so will this mean that it is going to be very difficult for them […]

READ MORE

Supply Chain Crisis Effects on Gold & Silver

The broken chain – could the supply crunch be worse than the oil crunch of the 1970s Anyone that has bought a new or used car in the last year has faced higher prices and long wait times for delivery. This is all because of the very small but essential semiconductor, which is in short […]

READ MORE

This is a Long Term Bullish Pattern for Gold – Gareth Soloway on GoldCore TV

“This is a long term bullish pattern for gold!” – Gareth Soloway Gold In this latest episode of GoldCore TV, Gareth Soloway joins Dave Russell to discuss what what the charts are suggesting for the stock markets, bond markets and #bitcoin. In addition to this he also takes a look at his gold price forecast 2021 and beyond.Gareth identifies the key levels that […]

READ MORE

Featured

Gold, the Tried-and-True Inflation Hedge for What’s Coming!

READ MORE

How High is Too High for Rising Government Bond Yields?

READ MORE

Silver – 7 Reasons it is Still Set to Soar

READ MORE