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Gold Rockets to $1,380 an Ounce While Chilean Gold Miners are Freed

Gold Rockets to $1,380 an Ounce While Chilean Gold Miners are Freed

Gold has been floating around all-time high levels for over a year now, but after languishing around the $1,000 mark for the best part of a year, it has suddenly found new impetus as the dollar continues to weaken.  At the same time, the Chilean miners trapped underground for over two months have been freed from their subterranean tomb, but what many do not realize is that they mining for gold!

Gold has always been valued by man, from ancient kings, pharaohs and clan chiefs through to religious leaders.  For the most part, gold’s principal use was in decoration, particularly making jewelry items for the wealthy.  Gold achieved new significance when it was used in the making of coinage, and the value of a coin was not in the promise on the coin but the gold content of the metal itself.
Effectively, gold coinage was the economic support for the currency itself, and this remained long after paper money was introduced (there is no intrinsic value in a dollar bill, it is simply specially treated paper-like cloth).  Today, gold has been decoupled from our currency but this does not mean that governments around the world have stopped buying gold to support their economies; far from it.  India and china have been buying huge amounts of gold because of the massive surpluses they have been running with their economies, and around the world, how much gold a government possesses or controls still has a direct bearing on the value of the currency they issue.

Typically, gold dramatically increases in value when economic times are hard.  The reasoning is simple enough; when the stock markets are crashing and banks are failing, what do you do with your money?  You invest it in gold because no matter what happens to the economy or to the bank, you will still own the valuable metal.  The problem is that when the economy tanks, the big investors and governments around the world look to buy gold in increasing quantities and that means the price rises dramatically.
This is why gold has reached such a very high price, but you need to be very careful.  The price of gold will plummet as soon as any positive economic signs return – as soon as the stock markets start to rally, then investors will look to dump their gold holdings and move back into stocks and shares.  This will increase the supply of gold on the market and the price will drop just as readily as it has risen.

This is why now is a great time to sell your old gold items which you no longer have a use for.  While the price of gold is so high, you are assured of getting top dollar for your unwanted items.  Also, for many people, with hard economic times there comes a need to find extra money to help tight budgets.  Paying down debt and credit cards, keeping savings intact, or simply meeting every day bills in the face of job insecurity means that the cash you have invested in your old gold items has a much better use than simply gathering dust somewhere at home.

Tags: Gold, Gold Miners, Sell Gold