January 02, 2008 at 11:00 am by Tom Lydon
Oil isn’t the only thing making headlines today: gold has also busted records, getting their exchange traded fund (ETF) hopping. In these times of increasing geopolitical tension, gold is viewed as a safe haven for investors. As they begin to feel queasy about risk, they often turn to gold to calm their stomachs, even though Rolaids are much cheaper.
Atul Prakash and Veronica Brown at Reuters say that the price of spot gold has leapt to $859 an ounce. Last month, we reported that gold was poised to set another record: it has never ended a month above $800 an ounce, until now. In 2007, the price of gold rose more than 30%, its biggest one-year gain since 1979.
If you’re thinking about popping the question but skipping the gold, don’t think other metals will offer much of a price break: platinum is at a record high, as well, and silver is at its highest point since mid-November.
It could be an interesting year for the gold ETFs. streetTRACKS Gold Shares (GLD) and iShares COMEX Gold Trust (IAU), both invest in the bullion. PowerShares DB Gold (DGL) invests in gold futures.
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