Gold continues the march to $2,000


The price of gold has again surpassed previous records with an ounce of the precious metal now worth just under $1,580.

This has prompted fresh speculation that the price of an ounce could reach $2,000 within a year.

Gold has been rising in cost on a near-weekly basis for around two years now, with investors throughout the world flocking to purchase what is traditionally known as the ultimate financial safe haven. Continuing financial crisis in various parts of the world, including the Eurozone, have sent more people buy gold as some investors are looking at the metal as its original form- a currency.

Brian Ostroff from Windemere Capital said: “Gold is just another currency, and investors fleeing the euro can choose gold instead. This is why it is not necessary, as some say, for the dollar to fall when gold rises – both can rise together against the euro, for example. The key point about gold is that it's easy to print more dollars or pounds – gold has to be mined.”

In the face of severe financial concerns in Ireland, Portugal, Greece, Italy and Spain, investors are finding that these countries are un-investable, sending them to precious metals instead.

Lloyds TSB recently reported that precious metals, gold and its cousins silver and platinum, were 2011 best performing assets. A spokesman for the bank said: “Precious metals continue to shine brightest among investors amid renewed uncertainty over the outlook for the global economy.”