{"id":5,"date":"2007-11-01T08:57:34","date_gmt":"2007-11-01T13:57:34","guid":{"rendered":"http:\/\/www.howtoinvestingoldnow.com\/blog\/investing-in-gold\/gold-price-reached-800-yesterday-but-not-such-a-shock-says-baltimore-sun-5\/"},"modified":"2011-01-10T17:21:48","modified_gmt":"2011-01-10T22:21:48","slug":"gold-price-reached-800-yesterday-but-not-such-a-shock-says-baltimore-sun","status":"publish","type":"post","link":"https:\/\/www.howtoinvestingoldnow.com\/blog\/5\/gold-price-reached-800-yesterday-but-not-such-a-shock-says-baltimore-sun\/","title":{"rendered":"Gold price reached $800 yesterday, but not such a shock says “Baltimore Sun”"},"content":{"rendered":"
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On the last day of October 2007 the gold price briefly returned to $800 an ounce for the first time in 27 years.<\/p>\n

But the “Baltimore Sun” commented that this number, which “sent jaws dropping” in 1980, was unlikely to shock anyone today.<\/p>\n

Adjusted for inflation, the $800 of 1980 would be about $2,000 today, the paper advises.<\/p>\n

Having raced up by more than $100 an ounce in two months because of factors such as the weak dollar, high oil prices and tensions on the global political landscape, it was hardly a surprise when the decision made yesterday by the US Federal Reserve to drop its benchmark interest rate a second time running in two months took gold futures over the $800 mark.<\/p>\n

\u00c2\u00a0“Money Week” in the UK expects gold to go above $1,000 an ounce before too long. It has climbed 28 percent\u00c2\u00a0in dollar terms in the past year, and 18 percent in sterling, currently priced at around \u00c2\u00a3380 an ounce.<\/p>\n

To compare the USD gold price with prices in\u00c2\u00a0all the\u00c2\u00a0major currencies, take a look at this live currency chart of gold prices<\/a>.<\/p>\n

The strong upward trend in gold prices hasn’t deterred investors yet, says World Gold Council spokesman George Milling-Stanley, according to the “Baltimore Sun”.<\/p>\n

The publication says this statement is backed up by the evidence. As the precious metal has risen on the futures market, investors have flocked to exchange traded funds or ETFs that track gold.<\/p>\n

\u00c2\u00a0As an example it cites StreetTRACKS Gold Shares ETF, which has “seen inflows swell 16 percent since Aug. 31 to $19.21 billion, while the futures price of gold has climbed about 17 percent”.<\/p>\n

Jewelry too is enjoying strong demand despite rising prices. Whereas in 1980 the $800 price was “the talk of the town”, today people “don’t even ask”, the “Baltimore Sun” quotes Boulder, Colorado owner of Hurdle’s Jewelry, Keith Hurdle. “If the piece is in their price range, they’re fine”, he says.<\/p>\n

Investing in gold mining stocks continues to be seen by experts as an excellent way of participating in rising gold prices, as increasingly more dollars chase a limited amount of gold.<\/p>\n

Just make sure you invest in companies with gold in the ground, they warn, however. Avoid exploration companies, who only have gold on paper.<\/p>\n

Or if you prefer to have a tangible asset that is valuable yet manageable, gold coins<\/a> are an increasingly attractive option.<\/p>\n

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