Gold surpassed $1,000 an ounce while Platinum jumped almost $100 in New York for the first time in almost a year as investors, hurt by plunging stocks and a deepening recession, sought to protect their wealth.
Banks are the worst performers on this trading day as banking giants such as Citigroup and Bank of America topped the list of companies posting losses amid the plunge of the stock market worldwide.
The financial situation remains extremely fragile and precious metals seems to be the only safe haven. Currencies are losing value and holders of currencies are losing confidence. Gold may break through $1,000 and silver may climb up to $20 as the global financial crisis wreck havoc to the global financial system.
Gold above $1,000 may attract more investors seeking to take advantage of the longest streak of annual advances in the metal’s price in 60 years. Assets in some of the industry’s largest exchange-traded funds are at all-time highs.
Silver futures for March delivery climbed 55.5 cents, or 4 percent, to $14.49 an ounce in New York. The metal has surged 28 percent this year, the best performance among the 26 contracts on the Maturity Commodity Index. The metal lost 24 percent from its peak in 2008.
"The downward momentum of the stocks is the opposite in the precious metal index, it seems that these commodities have already separated bottomed out of the deflation and its now its way up. These past weeks have been obvious because precious metals have been gaining faster than we expected." one investor commented.
Local numismatic club members are even cautious about selling their silver crowns because they don't want to end up as losers if the metal regain its former glory in the coming months. "I think I'll just have to wait for four more months before I could start thinking of going back to selling some of my stuff (coins). Meanwhile, I'm on a buying mode right now." a club member commented.
Local coin dealers have been busy lately looking for supplies as their inventories started dwindling. Some are even doing their homework to trace some old timer's hoard before they become short of stocks.