Bullion Desk - Home of Free Gold News and Bullion News
11 August 2011

Gold Price Nudges $1,800 and £1,090 per ounce. Even mainstream media shows signs of getting behind bullion.

As the financial crisis in Europe accelerated this week, investors fled to Gold, with prices topping $1,800 per troy ounce.

Words of reassurance from the ECB, and half hearted buying of Italian and Spanish bonds did little to arrest the fall in equities in Europe. The one thing that might reassure markets is the one thing that has not yet happened. Expansion of the European bailout fund, the EFSF. But opposition to this is growing in German politics, and the possibility that Germany may not open its cheque book again has weakened the Euro even further. Investors are fleeing to the Swiss Franc and precious metals.

As long time watchers of Gold and Silver in the media, we have noticed a softening attitude towards precious metal as an asset class over the past few years. This was brought home to us last Saturday reading Mathew Paris's regular column in The Times, where he explains why for the first time in his life, he pays a visit to a bullion dealer.

Not surprisingly, they were out of Gold, he ended up with Silver. It is a story that resonates with many a physical Gold buyer over the past year and before.

At strong interest by users in Gold, has not translated into buying this week, with buyers perhaps holding fire, in case of a pull back. If this was the case at the weekend, they were disappointed almost immediately as Gold was showing an almost $40 gain in early trade on monday and has done nothing but rocket since.

Silver continues to attract value buyers even though its price has not been sucked upwards by Golds rapid ascent as we might have expected. shows 100 Ounce Silver was trading at around 6.8% over fix on thursday. 1 ounce Gold Bars were trading at about 9.5%.

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