Gold extends record high on India purchase

Written by The Resista Wednesday, 04 November 2009 09:05

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( I'm telling you people. The sky is not falling but clouds are gathering. You had better get ready. This is no small matter. Not the end of the world but a whole new one to deal with. I can't even save paper money now much less gold so I am screwed in this new normal. )

From the F.T.

Gold prices continued to rise on Wednesday extending the all-time highs which followed India’s central bank bought 200 tonnes of the precious metal, swapping dollars for bullion as the country’s finance minister warned the economies of the US and Europe had “collapsed”.

India’s decision to exchange $6.7bn for gold equivalent to 8 per cent of world annual mine production sent the strongest signal yet that Asian countries were moving away from the US currency.

The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,090.90 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.

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