UPDATED - Gold pushes through $2K/oz - where will it stop?
Is the price here to stay? $2040USD
by Kevin Vincent.
Gold and silver are on a trajectory that spells incredible profits for precious metals investors and the companies they back.
Gold was hovering just under US$2040/oz at 7am EST today, poised for higher numbers.
The vast majority of experts predict $2000 will become the new floor-level price.
It's incredibly good news for Canadian gold miners as the spike in price and weaker US dollar deliver an increase in profits. Most Canadian miners have all-in costs less than $1300 an ounce (CDN) which means margins are through the roof. Producers are cash happy, accelerating debt payments, and on the hunt for new partnerships.
Many analysts, who are enjoying an incredible run on the stock market, are openly worried about the impending demise of the US dollar and its impact on the global economy. There are ominous signs that the US dollar is in trouble. Something fundamental is at work.
The behaviour of the dollar is particularly ominous as the world's key currency is sliding, not only against benchmarks such as gold and silver, but also against many measures of value including other key currencies.
The dollar is at a two-year low against a range of currencies and US Federal Reserve chairman Jerome Powell's statement on July 29 that the Fed will keep monetary policy “very loose”, at least until the end of this year, suggests even more greenback weakness.
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