Gold storms past $1,800 towards new record high (Inflation?)

Yahoo Finance ^ | July 8, 2020 | Peter Hobson

[Perseverando]

LONDON (Reuters) - Gold pushed above $1,800 an ounce on Wednesday for the first time since 2011, with analysts expecting further gains as investors stock up on an asset they expect to hold its value while the coronavirus convulses the global economy.

Spot gold prices have surged 40% in the last 14 months and are within striking distance of 2011's record high of $1,920.30 an ounce.

"We'll be challenging the $2,000 level by the end of the year," said Ross Norman, an independent analyst. "We are in a bull market for gold."

(Graphic: Gold's latest rally, https://fingfx.thomsonreuters.com/gfx/ce/jznpnzmokpl/GR%20RALLY.JPG)

Powering the rally is economic and political uncertainty caused by the COVID-19 pandemic and action by central banks, which have responded to slowing growth and the virus by slashing interest rates and flooding markets with cash.

This has fuelled fears of inflation, which would typically devalue other assets, and has also lowered returns on government bonds, making gold more attractive.

Gold's rise has been mirrored by a slide in real yields on 10-year U.S. bonds, which at around minus 0.8% are near record lows.

[Perseverando]

I think no matter how bad things get there is always somebody around who is so wealthy that they don't need more food, more heat, more fuel, or more electricity. They recognize the inherent scarcity of gold and will accumulate it.

Or maybe someone who just really, really likes the shiny stuff.

[blam]

Storm Warning

[Perseverando]

Thanks. I am not familiar with the site, but will have to bookmark it. Good article!

[Georgia Girl 2]

We use Gainesville coins for online puchases. They are reputable and have decent prices.

[Freedom4US]

You can move them to me, if they need a place to stay. :)