Pham-Duy Nguyen and Nicholas Larkin
December 2, 2009
[efoods]Gold surged to a record for a second day as investors stepped up purchases to protect their wealth against fiat currencies. Silver also gained.
Gold futures touched an all-time high of $1,218.40 an ounce in New York and bullion priced in sterling, euros and Swiss francs also set records. Central banks, pension funds and individuals have bought gold as a hedge against potential currency debasement and inflation. The precious metal is climbing “like there is no tomorrow,” David Thurtell, an analyst at Citigroup Inc., wrote in a report.
“We bought our gold in foreign-currency terms rather than in U.S. dollar terms for we were convinced that the world was turning its back upon fiat currencies,” said Dennis Gartman, an economist, hedge-fund manager and the editor of the Suffolk, Virginia-based Gartman Letter.