Gold hits another record as inflation fears grow
Gold prices hit a new record Wednesday and silver prices surged as investors bought up the precious metal to hedge against inflation.
Gold for December delivery rose $7.40 to settle at $1,347.7 an ounce Wednesday, breaking the record it hit the day before when it settled at $1,340.30. Silver prices also surged, with December silver rising 30.6 cents to settle at $23.043 an ounce.
Silver's surge reflected that metal's increasing popularity as a reserve investment, said Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments, LP.
Silver used to be valued more for industrial uses, being a chief ingredient for electronic devices like iPods and computers. But nervous investors are pulling out of currency and buying up silver because of its status as a precious metal.
"For every 10 gold commercials you see on TV, you see one for a silver dollar," Patton said. "You can just buy a lot more silver with your dollars than you can buy gold."
Inflationary fears are being the rise of both metals. With the U.S. Federal Reserve expected to announce new measures to stimulate a weak economy, most investors expect the value of the dollar and other currencies to fall.
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http://www.huffingtonpost.com/huff-wires/20101006/us-commodities-review/
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