Gold has reached a new high today, trading at 1069.70, surpassing the previous high of 162.  When the gold futures markets closed, gold was up $7.50 at a near all time high of $1065 per ounce.

The gold rally is now gaining momentum, as realizations sink in that the dollar has become seriously devalued, and is no longer able to hold the distinction as the “reserve currency” for the entire world.

Of course the flames of the dollars decline have been fanned by the recent crash of the United States financial markets, and government policies that are having a negative effect upon the business climate.

As the strength of the dollar erodes, the value of alternative “safe” investment currencies and assets will increase, chief among them is Gold.

The questions now are how quickly and completely will the market for the dollar decline?  And what to do about the collateral damage that this will cause ?  It is unlikely that economic conditions will change for the better any time soon.

Tags: Assets, Business Climate, Collateral Damage, Crash, Currencies, Distinction, Dollar Decline, Dollars Decline, Economic Conditions, Entire World, Financial Markets, Flames, Futures Markets, Gaining Momentum, Gold Futures, Gold Rally, Government Policies, Ounce, Reserve Currency, Strength Of The Dollar

This entry was posted on Tuesday, October 13th, 2009 at 8:04 pm and is filed under Economic Outlook, Gold Bullion, Gold Coins, Gold Investing, Market Forecasts, market forcasts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.