Gold price record as inflation hits

Gold has surged to a new high as the prospect of price inflation reared its ugly head in the United Kingdom on bad news from a report indicating a weaker-than-expected eurozone industrial production. Germany and France, despite sovereign debt fears, have been able to manage anemic growth but today’s data signals a slow down.

On Tuesday the gold price traded as high as US$1,261.90 and as low as US$1,246. Silver also experienced a boost today. The precious metal was up 14 cents to $20.31. Earlier this month, spot silver trading reached its highest point since March 2008.

“While silver has many of the same investment attributes as gold, it enjoys the added advantage of industrial demand. And as a currency alternative, silver is more practical. It’s been used as a currency, most notably by the United Kingdom (pound sterling). The French word for money is argent, or silver. In fact, the United States and Great Britain were both on a silver standard up until the 1800’s,” explains Gabriel Wisdom, writing for Forbes on September 8.