LONDON, Oct 10 (KUNA) -- Gold prices jumped more than four percent Friday as investors scrambled for safe havens amid the latest shares meltdown.

The precious metal jumped 38.5 US dollars to 925 dollars (545 pounds) an ounce on commodity markets as panicky investors switched funds from shares and even bank accounts to try and protect their funds.

There has also been heavy demand for rock-solid UK Government-guaranteed Treasury stocks, analysts said.

It came as the Financial Times Index of the top 100 company shares fell as much as 10 percent on another tumultuous day for the London Stock Market.

By early afternoon, Londons benchmark index was down 305.71 points at 4008.09, or around seven percent.

The major shares index has lost nearly 20 percent this week, and 38 percent since the start of the year.

The analysts said investors at the moment are being a bit cautious about leaving their money in a bank and having it in shares, and fleeing into something they feel is a much safer area to be.

They warned that the problem with gold is that it's a volatile commodity.It's all very well when the demand is there, but you stand to lose as well as making much more in the gold market, the analysts added.

© Copyright Kuwait News Agency 2008.

 

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government manipulation by Ivo Cerckel, Writer - 11-Oct-08
“They warned that the problem with gold is that it's a volatile commodity. It's all very well when the demand is there, but you stand to lose as well as making much more in the gold market, the analysts added.”

There is demand for gold, when monetary policies fail.

Governments are afraid that gold shows that their monetary policies are failing.

That’s why governments have been manipulating gold in the past. Therefore, gold’s price hasn’t increased even when there was increased demand for gold.

These days of manipulation seem to be slowly coming to an end. FreeGold, the marking of gold reserves to market, not to the model of 42 dollar an ounce or so like the US central bank, is being wringed out of the dollar regime.

The Gulf Central Banks are therefore buying gold, as Gulf News reported last week.

Individuals should do the same and should also mark their gold reserves to market. [Report Abuse | Email to a Friend | Reply to this Comment]

 

 

 

 

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