July 5, 2022

Price of Gold at All Time High

The price of gold reached an all time high in US Dollar terms in late electronic trading yesterday. Gold has continued higher this morning and is currently trading at $1,239 per ounce.

The previous all time high for gold was $1,226.10, reached in December 2009.

Gold had finished 2009 with a price of $1,087.50. This means that gold is up $151.50 or 14% for the year. During the previous year, gold had achieved an annual gain of 25.04%.

Although gold is currently in the spotlight, silver, platinum, and palladium have even larger gains so far during 2010. Compared to last year’s closing prices, silver has risen from $16.99 to $19.66 per ounce, gaining 15.71%; platinum has risen from $1,461 to $1,729, gaining 18.34%; and palladium has risen from $393 to $541, gaining 37.66%.

View the 2009 performance for gold, silver, platinum, and palladium.

Examining the Gold ETFs, Gold Reaches New Highs

With gold continuing its run, there’s been plenty of gold appearances in the mainstream press. But the more interesting discussions usually happen elsewhere. Here’s a few noteworthy blog posts and articles related to gold.

One thousand tonnes in the trust!

The SPDR Gold Shares ETF continued its rapid inventory growth and surpassed one thousand tonnes this week. An astounding 229 tonnes have been added so far during 2009.

Where do all the gold etfs get their bullion from?

While many mainstream news reports were quick to highlight the one thousand tonne level, others started raising questions. In an atmosphere of gold scarcity, where are the Gold ETFs getting the gold for their massive daily additions?

Ten Reasons to Avoid the Gold ETF

Elaborating on the above, an article that will make you seriously reconsider any investments in Gold ETFs.

Gold Around the Globe: Setting Records

While gold in US Dollars is still laboring below its all time high reached last March, gold in other major currencies has been setting new all time highs.

Perth Mint Suspends Gold Sales

Another major Mint has succumbed to the unrelenting demand for physical precious metals. Today the Perth Mint announced that they will be forced to cease taking orders until January.

Although the Perth Mint is based in Australia, they do approximately 80% of their business outside of Australia in North America, Europe, and Asia. Demand for their products was also likely seeing a boost due to suspensions and rationing programs implemented by the US Mint.

The Perth Mint has valiantly tried to keep up with demand. At the beginning of October, they hired more staff and added a third shift to keep up with increased demand. After running at capacity production, seven days a week, 24 hours a day for the past several months, they were finally forced to suspend taking orders.

On the same day, the price of gold surged $43.10 or 5.8%, and briefly traded above the $800 level. News reports mainly attributed the gains to “return of safe-haven investment demand” and “gloomy economic forecasts.” More so, I think the physical gold market is sending strong signals to the paper market that are becoming increasingly difficult to ignore.  I think huge daily gains in the price gold will start to become increasingly common as the retail level stampede into gold continues.