Gold at $2,750 an ounce? Here’s how it could happen
Filed under: Economy , Investing India, the world’s largest consumer of gold, is in the midst of its traditional wedding season, and that always creates extra demand for the pretty much useless yellow metal. Judging by the recent actions of that nation’s central bankers, they must have been invited to every instance of nuptials in the entire country. The Reserve Bank of India purchased almost $7 billion worth of gold from the International Monetary Fund last week, helping to propel prices to $1,100 an ounce. (That’s a nominal all-time high, by the way, not a real one. Adjusted for inflation, gold would need to more than double to set a true record.) Of course, the wedding season has nothing to do with India taking 200 tons of gold of the IMF’s hands. More likely, it’s the ever-crashing greenback. The U.S. Dollar Index , which measures the buck against a basket of six major currencies, is perilously close to falling through its 52-week low. Continue reading Gold at $2,750 an ounce? Here’s how it could happen Gold at $2,750 an ounce? Here’s how it could happen originally appeared on DailyFinance on Tue, 10 Nov 2009 06:30:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments
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Gold at $2,750 an ounce? Here’s how it could happen
