, IncGold Price Drops Slightly from New Record High
June 11, 2010 - Reflecting a shift in trading by buyers and sellers who are rebalancing their accounts at the end of a busy week, the mid-afternoon gold price Friday hovered around $1,222, some $30 off a newly established record high set on Tuesday.
Gold reached $1,252.11 on Tuesday, June 8, the second time in as many months. The previous top mark was recorded on Wednesday, May 19, when gold reached $1,243.10 an ounce. The most recent record gold price is attributed to a proposed tax increase in England.
Gold first began its upward march more than a year ago when recession hit the U.S. economy. Debt concerns have since driven several European nations to the brink of insolvency, which led to May’s record-setting gold price. Now, with the news that gold coins are exempt in the new U.K. prime minister’s plan to double the capital gains tax rate, June gold purchases are blazing as British investors engage in what one observer described as “panic buying.”
But wherever there are economic losers, there are winners nearby, and long-term investors in the gold market are reaping the benefits of the increase in demand. Dealers in gold are caught up in the whirlwind accompanying a skyrocketing gold price, too. There’s simply not enough product to sell.
Supplies are stretched so thin that most gold coins are actually trading above market value by as much as five percent. What’s more, many European dealers claim they won’t be able to fill any purchase orders before August, leading some analysts to speculate on the chances for another record-setting gold price to come in the near future.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
