MoneyNews
Thursday, April 6, 2006

Reprint Information

Book on Katie Couric Makes Waves White House: We're Not Subject to FOIA FBI Seeks 2 Mysterious Men on Ferry Publisher: Conservatives Do Read As Much As Liberals Romney Shrugs Off Mormon History Film

Breaking News from NewsMax.com and MoneyNews.com

Gold futures climbed to over $600 an ounce this morning, a new 25-year high for the metal. Other metals, such as silver and copper, also jumped.

Gold broke through the $600 barrier without any particular news leading the charge, a signal that traders are bidding the metal higher on its own merit. Gold is up over 15% this year.

With gold trading above $600, funds may be inclined to add to their winning positions -- a move that would push gold even higher.

[Editor's note: SectorTrade, Andrew Wilkinson's ETF service, bagged 17.5% profits in just 2 months in the iShares Comex Gold Trust. Find out what sector he's aiming at now.]

Story Continues Below

In addition, consumption in China and India are big drivers of gold prices. Gold jewelry is regarded as a status symbol in both countries, and a popular wedding gift in India. As the two countries grow their middle and upper-middle classes, they should continue to demand more gold.

"Funds have been the biggest buyers of gold this year, outpacing purchases by jewelers, who accounted for 73% of demand last year, the London-based World Gold Council said in a March 29 newsletter," says Bloomberg News.

Gold usually trades at the inverse of the U.S. dollar. Meaning that, when the dollar is down, gold is generally up. In early morning trading, the dollar was mixed - down against the pound sterling, but up against the yen and the euro.

[Editor's note: Warren Buffett is so convinced the dollar will plunge in 2006 that he's placed a $16.5 billion bet on it. Our view: Gold is one of the best ways to profit when the dollar falls. Go here now.]

Gold's all-time record high was $850 an ounce in January 1980.

Silver hit a 22-year high. Silver, sometimes referred to as gold's stepsister, traded at $12 an ounce this morning.

Analysts believe that silver's run is being driven by the new silver ETF that is in the works. The silver ETF will be backed by silver bullion, driving up the demand for silver.

Copper and zinc also hit record highs this morning. Copper is up 30% this year, and has nearly doubled in price in the past two years, according to Reuters. Bloomberg News reports that zinc is up 46% in 2006.

Platinum climbed more than $17 to $1,098 an ounce. Palladium added more than $13, jumping to $356 an ounce.

Precious metals and commodities overall have enjoyed a bull market since 2003. With the introduction of new ETFs, fund managers flocking to commodities, and the rapid growth of China and India, precious metals are clearly in store for a long-term bull market.

Editor's Notes:

• SectorTrade, Andrew Wilkinson's ETF service, bagged 17.5% profits in just 2 months in the iShares Comex Gold Trust. Find out what sector he's aiming at now. Go here now.
• Subscribers to FIR have cashed in on gold's bull run over the past couple of years. Here are just a few examples: 100% profits in Glamis Gold, 82% gains in Agnico-Eagle Mines, 82% in US Global Resources Fund, 56% in US Global Gold Shares Fund, and 55% in Goldcorp. We're convinced that gold could easily break $700 - but it could go as high as $1,000 if one very possible scenario unfolds. Discover the #1 gold fund to own now.
• If you had invested in the stocks Wayne Rogers recommended to FIR readers last year, you would have captured profits of 94% to 353%. Now he's back with his profit-packed recommendations for 2006. Go here now.
• Warren Buffett, the world's second-richest man, is so convinced the dollar will decline in 2006 that he's placed a $16.5 billion bet on it. Our view: Gold is one of the best ways to profit when the dollar falls. Go here now.