Gold Sets New Record High
The International Monetary Fund's 200 metric tons gold sale to the Reserve Bank of India has really put a charge in the precious metal today, propelling it to a new all-time high. Spot Gold last traded at $1084.90, up from yesterday's close of $1059.60. The main gold ETF, SPDR Gold Shares (NYSE: GLD), is up 2.25% today to $106.29, also a new high.
The IMF's sale represented almost half of the total sales volume of 403.3 metric tons that was approved by the Executive Board in September. The total sales proceeds are equivalent to US$ 6.7 billion or SDR 4.2 billion.
China was thought to be the lead buyer of the stake, but instead India bought.
Many investors have been getting long gold on fears of depreciating world currencies, including the U.S. dollar. Many have been gaining exposure to gold through ETF SPDR Gold Shares (NYSE: GLD) or through the miners as represented by Market Vectors Gold Miners ETF (NYSE: GDX), which seeks to replicate the price and yield performance of the NYSE Arca Gold Miners Index. Top holdings of the index include Barrick Gold (NYSE: ABX), Goldcorp (NYSE: GG), Newmont Mining (NYSE: NEM), Kinross Gold (NYSE: KGC), and Yamana Gold (NYSE: AUY). There is also a new gold ETF - ETFS Physical Swiss Gold Shares (NYSE: SGOL) - that traders are starting to use.
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