Gold hits record high today
Most of us can remember when the price of gold reached $1,000 an ounce. Shortly afterwards the advertisements came along. “As the value of the dollar decreases…” Now there are places popping up everywhere willing to pay “top dollar” for your old gold jewelry.
Since breaking $1,000, gold has steadily been on the rise. The price of gold rose to $1077.80 per ounce today creating a new all-time high. This increase in price is partially a result of the International Monetary Fund who sold India 200 metric tons of the metal at a cost of $6.7 billion dollars. This sale is part of the International Monetary Funds plan to sell off 400 metric tons of its supply.
Another factor contributing to the rise in the price of gold comes from Barrick Gold Corps buyback last month of 1 million ounces of gold in its hedge books.
When gold is sold in such large quantities it has an effect on the price because of less gold entering the open market.
Gold is an excellent hedge against inflation. As the value of the dollar drops gold increases in value. Adding gold to your portfolio today would be a wise investment decision.
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