Why is Gold up $40?

Gold Market Update for October 2011

It was only last Tuesday that newsletter writer and frequent CNBC guest Dennis Gartman wrote that the gold market is suffering “very real damage.” His comments were picked up very widely making headlines in the financial media internationally. Gartman warned that he feared that the rally from September’s lows is “now under assault.”

With the most recent spike of more than $40 Dennis Gartman has done a swift about turn, now adding to his gold position by buying the metal priced in dollars, pounds and euros. He declared he was certain gold prices would break upwards sooner rather than later.

“The authorities have no choice but to inflate their way out of the morass that they’ve found themselves falling into and that shall mean the diminution of currencies generally and the advancement of gold as the only currency not diminished”, he said.

Bear in mind he is followed by major banks, hedge funds and institutions who trade in gold on Wall Street and may influence their trading activities. Cornerstone Asset Metals maintains that gold investors hold gold for the long term and should not be influenced by short term moves on the downside. The long term gold buying strategy is still very much intact. Get in touch with a Cornerstone Asset Metals representative to establish your position in the precious metals market

Read more about gold as an investment in 2011.

» Contact Cornerstone Asset Metals today to learn more about buying gold as an investment.

Past performance is not an indication of future potential values.