Europe on a stretcher, Gold on a tear
We predicted the runup in Gold. As a hard asset, it, along with other hard assets, should increase in value above inflation. Largely, we have been proven right. I wrote about it in our annual predictions. Via FT:
Gold prices hit an all-time high as demand surged to the highest level since the collapse of Lehman Brothers in 2008 amid volatile financial markets in Europe.
Spot gold in London surged to above $1,230 a troy ounce, surpassing the previous record set in December last year.
Gold prices in euro terms also hit a fresh all-time high of €969 an ounce in late trading in London on Tuesday, up almost 26 per cent since the beginning of the year.
Traders and coin dealers said buying was exceptionally strong from German and Swiss investors. In Frankfurt, gold sellers said that demand late last week was three to four times normal levels. The spike appears to reflect concerns in Germany about the potential inflationary impact of the European Central Bank’s decision to buy up eurozone government bonds in the wake of the Greek debt crisis.