Gold Continues Record Run On Dollar Weakness
Thu, 12 Nov 2009|
Investors continued to exit the U.S. dollar and buy gold Wednesday, sending the metal to record highs and signaling some market participants see continued greenback weakness and looming inflation.
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Automatically Generated Transcript (may not be 100% accurate)
Still might impact your life you know other than just violence boys are Boston's -- decision and AM surgery. W mark carrier. Steve Cyrus share with -- taught at WR here everyday at this time he's our business reporter. We also one of the Boston Globe this -- section from time to time them for the globe and these people -- realize this but Steve this is adjusted. Really weighed down with -- blank when he comes on the -- with us with -- he's a big gold got hot hot -- flex around us now I you -- stiff. Pretty good at this and you understand a little bit away somewhere ha ha.
This to teach Haywood did -- story -- story about Doug golden did the president just keep running up. Todd and I look at each other is what -- it went missing out on something at least information only if not as an investment. And that we -- go to got to talk about what is going on in the world the gold and why has the price of it. Run up so dramatically over these last few years.
Well this has been quite a dramatic thing as you point out in space over a period of time and didn't know recent months it's got -- capital last week result. It's not as big runs it but if we go up again today if it cannot match the best. And you know updated day run since three or four years ago where -- they had eight straight days it went up. And it was up earlier in London gold starts trading in London early in the day and then in New York later on it was up so. Over 1123. Dollars and doubts that this morning which is. I just a huge number and has been. -- at SSA going up dramatically for some time and it's going up as the the popularity of the US dollar.
Crazy how that dynamic so okay because we needs and we need these tools for knowing how to observe it. When the dollar sinks you put your money into gold why is that relationship there.
Well that gold exist for a lot of different reasons but what as an investment one of the main things that it's served as. Is a investment hedge of protection. Against periods of inflation if the dollar loses value that we have inflation like we had decades ago. Gold will continue to hold that values so people will. By more Britain have a larger percentage of their total assets held in goal to protect against that -- would -- to have inflation anytime soon. But people look at how the government is pumping. There -- billions and billions of dollars into the economy and saying you know where's -- stalling and sputtering right now and probably will be for another year maybe two years but. Down the road all this money is gonna create a big huge amount of inflationary protection and this gold is gonna help us -- that.
Is there are also a new attitude towards diversification that holding stocks. A 100% is not a good way to plan for the future after the the big burst.
Well I I think sort diversifying away from stocks is true. I'm not -- of gold in the price of gold moving up is the direct relationship to that I think you know the gold it. Gold -- a funny thing in terms of how it gets going there's unlike. Stock in the company that actually earns money or. Heating oil that actually warms your house in the winter. You know -- doesn't do anything so it sometimes the price going either up or down can get exaggerated by. Trading and markets getting carried away with the result that might be a little bit what we're seeing right now. They've particularly when -- did when the dollar is moving around you know that a couple years ago when the economy was. Still pretty good but the dollar was weak. There was today to what they call -- haired traded it in in. It in investments where people were buying oil and selling dollars and so the pressure was down on the dollar and oil became artificially high. Right now with a stalled economy people are selling dollars because dollars a week again but instead of buying oil so much they're buying gold and that's one of these things that is helping perhaps artificially. Boost the price or the acceleration of --
But Steve is he described these fluctuations in some of the reasons behind the fluctuations you also said gold traditionally bought as a hedge against inflation. And that we -- not suffering from inflation now but what the run up and I love the word zillions by the way I haven't heard that before zillions and zillions of godaddy.
What resilience they've become.
That is an idol I love the phrases. It seems to me then that underneath it all does a pretty strong foundation. For the price of gold because the inflation risk is not immediate. But it's out there in the not too distant future seems to me than the price of gold stays reasonably high and his is probably less subject to a decline.
I think you're actually right I think -- the trading in the prices now.
