All the Gold ever extracted is 160,000 tons (in 2009) , The American Debt = 14 Trillion Dollars = 1.8 All the Gold ever extracted in Human History !!! The monetary mass in the US is increasing by 15% a year ! Total gold divided by people in the world gives each of us 23 grams
Receive these posts via email :

Monday, June 1, 2009

Gold Gains to Three-Month High as Weaker Dollar Boosts Demand


By Jae Hur

June 1 (Bloomberg) -- Gold climbed to the highest in more than three months as a slumping dollar increased demand for the precious metal as a store of value. Silver gained to the highest since August.

Precious metals advanced as the dollar dropped to the lowest since Dec. 18 against a basket of six major currencies, after posting its biggest monthly loss this year in May. Silver rose 27 percent in May, the most since April 1987, and gold added 10 percent, the most since November.

“The dollar’s weakness continued to lend support to commodities, including precious metals and crude oil,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo.

Gold for immediate delivery added as much as 0.7 percent to $985.70 an ounce, the highest since Feb. 24, and was at $983.51 at 1:57 p.m. in Singapore. Silver for immediate delivery climbed as much as 1.3 percent to $15.95 an ounce, the highest since Aug. 8, before trading at $15.865.

Spot silver has jumped 39 percent this year, while gold has gained 12 percent. One ounce of gold now buys about 62.1 ounces of silver, the lowest this year, according to data compiled by Bloomberg. This is down from a high of 84.39 in October, which was the most since March 1995.

“Both precious metals appeared to have been overbought,” Kikukawa said. Silver’s 14-day relative strength index, a gauge of momentum, rose above 70 on May 28, a signal some investors use to indicate prices may be about to decline. The index for gold climbed above 70 on May 29.

Record High

“Given the re-emergence of the typical inverse relationship between the dollar and gold, the likelihood of further weakness in the dollar should drive gold to a test of its 2008 record highs,” said Toby Hassall, an analyst at Commodity Warrants Australia Pty in Sydney.

Spot gold reached a record $1,032.70 on March 17, 2008.

Read entire article :

Gold and Silver blog