Gold reached $1000 an ounce – what next?

In times of deepest gold last recession promises safety. This is the current gold price can be seen, already used in the past few weeks massively increased. Now, the price for the precious metal on the mark of $ 1000 per ounce.
Precious metals analysts had already start to week on speculation, now it’s happened: The price of one ounce gold futures on the mark of $ 1000 per ounce reached. This corresponds to the record level of 793 euros converted. On Friday afternoon, gold prices climbed to the ounce (31.1 grams) briefly over 1000 $. Currently, the gold at USD 992.

In March 2008 was the first time on the Gold 1000 – $ brand increased. On 17 March 2008, the precious metal reached the previous record price in U.S. dollars of $ 1033.90. While the gold price in recent months because of the global recession continued to rise, that industrial metals demand due to the slump in value significantly.

Because of the rising price of gold is also in demand for jewelry fell significantly. The demand from investors has, however, overcompensated. Since 2000 the gold price on an annual vision always increased.

The rise in gold price is mainly a sign that many investors worldwide inflation rather than deflation fear. The large banks are currently the world’s massive amounts of money from what the textbook to a devaluation should lead. The director of the Hamburg World Economic Institute, Thomas Straubhaar, warned in an interview published on Friday in front of it. He constructed “with a monetary devaluation of five to ten percent per annum for the period after 2010,” he told the magazine “Focus”.

“Gold is currently the dominant theme of the investors in commodities,” said analysts from Barclays Capital. “The financial and economic crisis and massive Reflationierungspolitik of the governments and central banks allow investors regelrecht refuge in gold,” said Eugen Weinberg, commodities analyst at Commerzbank week. Especially striking is the strong interest in gold for investment purposes. These are primarily exchange-traded fund (ETF) popular. Rose alone in the past week, the stocks of the world’s largest and most popular gold ETF, the SPDR Gold Trust, 118 tons to almost 986 tonnes.

Demand unabated

“The demand for investment gold bars in Europe continues,” said Wolfgang Wrzesniok-Ro├čbach, Head of Marketing and Sales at Heraeus Precious Metals Dealer. “Our production is running bars for this reason further to maximum speed.” Thus, long lead times are still not ruled out. Also, coins are still massively in demand. To report mints worldwide by an unprecedented demand. Because the production of U.S. coins do not come after soft U.S. investors, among other things, after Australia.

But the central bank purchases, the value of their reserves to preserve, by market participants as a reason for rising prices mentioned. Sun announced on Tuesday the Russian central bank vice governor, Alexei Uljukajew, that his house had the gold content of the reserves increased, and 2008 would also put of 2009. Concrete figures he cited are not.

The high prices also call again speculators on the map. So climbed the speculative net long positions on the New York Commodity Exchange Comex in the week on the 10th February, to 163,622 contracts in 8000 and reached the highest level for six months.

In contrast, the record prices, demand in the jewelry industry massively burglarize. So has India, as normally the world’s largest importing country in February so far absolutely no gold was introduced as representatives of the Bombay Bullion Association announced. Already in January, while imports to 1.8 tonnes from 24 tonnes in the same month last year caved. The existing requirements may, according to the association representatives with full return to the old gold covered.

Analysts see continued high demand

But as long as the investment demand will jump into the breach, this is likely the price of gold is not a burden, analysts are convinced the bank. “Funds put huge sums of money in gold and buy at almost any level of support,” said Si Kannan, Vice President at Kotak Commodity Services in Mumbai. “Given the global uncertainty can be sure that gold’s upward march will continue.”

As an additional driver called Frank Schallenberger, commodity expert LBBW that the production of gold mines is likely to decrease in 2009 again. In addition, the sales program of the Swiss central bank’s provision, which in the past decade an average of 150 tonnes per year on the market. The sales program of the Banque de France runs from.

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