Precious Metals & Bench: Data & Statistics
Gold Prices Capture Attention
Just in time for Christmas sales, news reports have focused
on the value of gold
Gold prices broke the $300-per-ounce barrier for the first
time in a year in October. The increase was spurred by the unexpected
announcement that 15 European central banks would limit annual
sales to 400 tons in the next five years.
The decision was expected to stem a long decline in gold prices
caused by oversupply. Gold prices reached a 20-year low of $252
this summer. But just as quickly as the prices rose to $323 in
early October, they fell back to $296 as the month ended. The
reason is a complicated one involving lease rates, which reflect
the cost of borrowing metal. A decline in lease rates caused
many investors who had bought gold during the price runup to
Keep your eyes on gold prices so you can negotiate with your
gold jewelry suppliers knowledgeably. Even more importantly,
use the ups and downs of gold commodity prices to romance your
jewelry with consumers. Whether the price is up or down on a
particular day, the fact that it draws the world's attention
is evidence that gold does matter to a lot of people and
therein lies its intrinsic value.
by Ren Miller
Copyright © 1999 by Bond Communications.