Gold prices reach fresh high price in dollars, or dollar reaches a new low against gold?
Earlier today, the United States Mint increased the prices for gold coins and other gold products from their mints. The adjustment comes as the price of gold reached a fresh all time high above $1,270 per ounce during trading yesterday.
Gold has been on a tear lately. Soros has described it as the "only bull market right now", and "the ultimate asset bubble". He did this right before doubling his position in gold. We are of the opinion that gold has no intrinsic value except as an alternative to fiat paper. Right now, all currencies are down against gold as the markets are putting their trust not in the Federal Reserve note, but instead the shiny yellow metal that you can't eat.
I expect this trend to continue wether or not the economy improves because the underlying urgency behind gold is the lack of faith in the fiscal discipline of the Western economies. I don't have a price target but Peter Schiff has said that it will eventually intersect and cross the price of the dow.
From the Archive: Peter Schiff says gold 10,000
Disclosure: I own GLD