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Gold breaks through US$1,000 barrier
9 September 2009
Gold breaks through US$1,000 barrier
Gold has broken through the US$1,000 an ounce barrier for only the third time in history.
The price of the precious metal has hit US$1006, after topping out at more than US$1000 only in late 2008 and February this year.
New Zealand Mint bullion dealer Michael O’Kane says the rising price is a reflection of tougher times.
“There’s a wide range of drivers. The global economic situation has driven some people to invest in gold as precious metal is seen as a safe investment in troubled times. Plus, the Chinese market has increased demand as the middle classes there start to invest,” O’Kane says.
“A substantial body of analysts is predicting it will go even further as global market volatility continues. Gold is seen as being safe.”
O’Kane says that because gold is traded in US dollars, New Zealanders can benefit from the strong NZD / USD exchange rate.
It has been more than 28 years since the gold price was anywhere near today’s levels when it reached US$850 in 1980. However, adjusted for inflation, the 1980 price is the equivalent of more than US$1,600 today.
On the Web: www.newzealandmint.com
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