Streams

All That Glitters Is Gold: Price of Precious Metal Reaches All-Time High

Tuesday, August 16, 2011

Gold was flying off the shelf in midtown Manhattan as the price of the precious metal reached an all-time high amid a wild week on Wall Street.

"We’ve done the most business that we’ve done in any single week,” said Isaac Kahan, president of Bullion Trading LLC, which specializes in selling and buying of gold and silver. “It was about the four times the normal volume.”

Gold reached a high of $1,813 an ounce last Thursday. But on Monday, as stock markets recovered, it was down to $1,766 an ounce. And although experts say fear was driving gold prices — not the markets — there were no signs that the demand for gold would abate, or that its price would significantly drop in the long term.

Kahan, who’s been in the business for 30 years, said his clients were forking over between $200 and 350,000 — his largest transaction — to buy gold last week. His most popular products have been 1-ounce bars and the Gold American Eagles coin.

"People are saying they’re basically worried about the dollar, and they’re just worried about the political climate," Kahan said of his customers.

The downgrade of the U.S. credit rating, fragile economic recovery, as well as growing economic problems in Europe have resulted in concern that seized the market and accounted for its wild swings, experts said. Consequently, investors turned to gold, which is perceived as a safety instrument in time of turmoil.

"Fear of future inflation, fear of currency debasement and basically just fear of default and the unknown,” said Matthew Zeman, a strategist at Kingsview Financial, explaining what was causing the demand for gold.

Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC, said he expected the money to continue to move into the precious metals, and the price of gold to rise up to $1850 an ounce.

"I think it’s still going go higher," Zeman said of gold’s prospects. "And I don’t think you’ll see buying interest dry out to any significant degree along the way."

Tags:

More in:

Comments [2]

Aloha Bobby from Honolulu

The trick is staying on the right side of the gold behemoth. Long or short. Ladies and gentlemen, place your bets! The casino is open and growing bigger by the minute.
There is so much money to be made whether gold is on the uptick or downtick. Just have to know when to get in and get out.
For the longest time I was in the gold markets but not really OF them. I eventually, through a recommendation of an older friend of mine, found this forecast. Like everyone else, I was skeptical of ANY forecaster, but Gary Wagner is shockingly accurate. I'm not a millionaire or retired at 44, but I'm doing very, very nicely, so I suggest giving it a look: http://tinyurl.com/3wvd2mz

Aug. 16 2011 07:23 PM
John Mugg from new york

Check out this cool Gold Coin photo on photoshelter http://bit.ly/oAJe8G

Aug. 16 2011 11:23 AM

Leave a Comment

Email addresses are required but never displayed.

Get the WNYC Morning Brief in your inbox.
We'll send you our top 5 stories every day, plus breaking news and weather.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by