Gold and Silver Prices Reach Higher Record Highs
Prices of gold and silver reached even higher record highs than last week’s, with gold climbing from $1,505.70 per ounce to $1,518.30 and silver rising from $45 to $49.79.
Gold rose to $1,518.30 before falling back during morning trading in Europe while silver reached $49.79 briefly before retreating to $46.91.
The increase in prices were caused by a weaker US dollar and persisting political tensions in the Middle East and North Africa.
Investors are buying the precious metals as a protection against a devalued portfolio as a result of inflation and the political turmoils.
Ong Yin Ling Phillip Futures Sector Investments Fund Manager Angelos Damaskos said that their company believes that gold could jump to as high as $1,600 an ounce by the end of the year.
He also said that gold could possibly surprise people further because it could rise to significantly higher levels because of its very limited supply.
The price of gold has risen sixfold in the last 10 years and has more than doubled since the global financial crisis of 2008. Yesterday, April 26, 2011, it rose for the seventh consecutive trading session.
On the other hand, the price of silver was more volatile, it has quintupled since 2008 and has increased 12-fold in the last decade.
Weak dollar, one of the causes of increased prices, is expected to become even weaker as it is being criticized by china and other countries that hold large dollar reserves and as interest rates in the US are becoming lower.
The uncertainty in the Middle East turmoil is also making investors continue to react nervously. The escalation in violence in Yemen and Syria over the weekend helped push the price of gold higher.