Gold prices hit new highs


Gold, the ultimate safe bet for investors, has again reached an all time high price of $1,269 topping the previous high of $1,265.30 reached in June earlier this year.

It is thought that continued uncertainty regarding sovereign debt and problems in the Eurozone have contributed to the price increase, which was announced on Tuesday at the London Bullion Market.

Gold, mainly used for jewellery and investment, is always seen as a safe bet and prices traditionally rise in times of high inflation and economic troubles. In fact, the Washington based Internatinal Monetary Fund has just agreed to sell $403 million worth of Gold to Bangladesh, in a bid to boost finances in the face of global monetary woe.

Jeremy Cook, the chief economist of World First said: "The recent upsurge in gold is down to a couple of things. Primarily, it's a hedge against uncertainty. Stock markets are still vulnerable and government debt, in some cases, cannot be trusted, so market participants are flooding into the yellow metal as fears over the global recovery continue. Secondly, it follows a huge move higher in silver, which is up over 20pc since the beginning of the year on the back of supply concerns."