Friday, June 11, 2010

Superior Gold Group - Euro crisis pushes gold to yet another record

Long-term investors in dealer gold had their foresight rewarded yet again this week as the precious metal soared to another record high due to concern about the European debt crisis.

A Tuesday Reuters report noted that gold's new record price now stands at above $1,250 per ounce, while gold futures for August delivery stood at another record of $1,254.50. The wire service also noted that the gold prices have risen about 12 percent during the current quarter alone.

Elsewhere, a report from Bloomberg News quoted Paul Walker, CEO of GFMS, Ltd., as saying that gold prices could trade between $1,050 and $1,300 for the rest of this year, with the potential to soar as high as $2,000 per ounce if the current European debt crisis extends to other regions of the world.

The current sovereign debt crisis focuses on fears that Greece, followed by Spain and Portugal, will eventually default on its bond obligations, which would result in billions of dollars in fresh losses for European banks.

However, the United States and other countries, including Mexico and Great Britain, have been receiving their own levels of investor concern about heavy budget deficits and long-term fiscal problems.