September 19, 2008 at 10:00 am by Tom Lydon
Gold and the metal’s exchange traded funds (ETFs) jumped for a second straight day yesterday on a rush of safe-haven buying.
The metal closed above $900 an ounce after a rush of save-haven buying took place on economic fears, reports Pham-Duy Nguyen for Bloomberg. This means that in the last two days alone, the price has surged more than 15% – the most since futures debuted in 1975.
On Wednesday, gold jump $70 for a 9% gain. The price jump was the most over, while the percentage gain was the biggest since September 1999. Gold is still off its all-time record price of $1,033.90, which was reached on March 17.
Silver jumped 8%, and over the last two days has rallied 21%. It was the most since 1979. But silver is still down 15% for the year, while gold is now up 7%.
Gold, along with other precious metals, and physical commodities are often seen as a hedge against inflation and a safer bet for investors on Wall Street. Volatility is expected to be around for a while, so keep your stomachs strong.
Look for ups and downs in:
- PowerShares DB Gold Fund (DGL), down 0.3% year-to-date
- SPDR Gold Shares (GLD), up 0.5% year-to-date
- iShares Comex Gold Trust (IAU), up 1% year-to-date
- iShares Silver Trust (SLV), down 19.1% year-to-date
Subscribe to Our RSS Feed
