Wednesday, January 2, 2008

Gold on its way to $2,130 an ounce?

Gold stocks anyone?
clipped from www.bloomberg.com
Gold rose beyond $850 an ounce in
London, breaching the record set more than a quarter-century ago
Prices advanced 31 percent last year, the biggest gain
since 1979, when U.S. inflation was more than 13 percent.
Unless the world suddenly becomes a wonderful place to
be, the gold price will continue to move higher,'' said Jeremy
Charles, global head of precious metals in London at HSBC Bank
Bullion also advanced for a seventh consecutive year in
2007 as investors sought an alternative to the declining value
of the dollar.
Gold rallied 12 percent in the fourth quarter,
climbing to a 27-year high since mid-September, when the U.S.
Federal Reserve cut interest rates.
JPMorgan Chase & Co. predicts gold will strengthen to $950
within six months.
Based on 1980 dollars, the January 1980 record of $850 is
the equivalent of about $2,130 today, according to an inflation
calculator on the Web site of the Federal Reserve Bank of
Minneapolis.
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