Gold hits new high

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Gold price 2006 to 2008

News release gold price - 1
9 December 2007

Gold hits new high

The price of gold has hit an all-time high reaching US$880 (NZ$1,130) per ounce overnight.

New Zealand Mint bullion dealer Mike O’Kane says the global price has risen 26 per cent in the past 12 months due primarily to uncertainty in world markets.

“We’re living in turbulent times and that’s when people migrate to gold which is seen as a safe haven investment. People are turning to gold as the US economy weakens, oil prices continue to rise and global political tensions increase.

“Add to that the huge demand for gold in China and India and you can understand why the price is sky high. The Chinese economy is one of the globe’s strongest and demand there is increasing up to 30 per cent a year.

“In the Middle East the demand for gold is increasing at about 10 per cent a year and in India gold demand is well up because of the wedding season where it is a traditional marriage gift.

“There is strong support for gold at these levels and many New Zealanders are taking advantage of our high dollar to pick up some of this high performing asset.

“Most commentators say they cannot see any drop in the price while the global situation remains tense and the US dollar so low.”

It has been more than 28 years since the gold price was anywhere near today’s levels when it reached US$850 in 1980. However, adjusted for inflation the 1980 price is the equivalent of more than US$1,600 today.

On the Web: www.newzealandmint.com www.nzmint.blogspot.com

ENDS

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