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Follow on Google News | Gold and Silver Prices Increase to Record HighsThe price of gold has risen for the seventh consecutive trading session and China Mineral Company analysts expect a continuation of this run.
By: Clair Barton The price of gold increased to a staggering $1,518.30 per ounce on 25th April and silver reached a historical high of $49.79 per ounce, its biggest daily gain in five months. China Mineral Company analysts are predicting the price of gold to further escalate to $1,600 per ounce due a further weakening of the U.S. dollar, and this rise in price could easily be surpassed due to the relatively low supply of this precious metal. Ben Bernanke, U.S. federal chairman, is expected to confirm tomorrow the commitment of the U.S. to quantitative easing. This approach will flood money markets with liquidity but will negatively impact the dollar. A lower dollar will positively increase the prices of precious metals around the globe. With the dollar at an approximately three year low on Monday, its weakening has had particular impact on India in recent weeks. Traders in India have been buying silver in large quantities, where gold is the traditionally preferred metal. Companies that don’t usually trade in silver are buying it by the ton to take advantage of the weakened dollar. This is great news for the precious metal industry when you consider holdings in iShares Silver Trust have increased by 2.4% already this year. India, the world’s biggest gold consumer, has increased their purchasing of this precious metal even further. India imported over 900 tons of gold last year prompted by wedding and festival requirements. The price of silver also bears interesting historical links. Its price is the highest it has been since the 80s when the Iranian revolution affected oil prices in a similar manner to current trouble in the Middle East. Investors are choosing to buy previous metals as they are traditionally seen as a hedge against a failing economy and rising inflation. Not a bad move when you take into account the price of silver has multiplied over 12 times in the last ten years, climbing approximately 60% this year alone. The price of gold has additionally increased six-fold in the last decade making previous metal investment a very lucrative business. # # # About China Mineral Company, Ltd.: China Mineral Company Ltd. was formed in 2007 to explore unallocated tracts of land abutting the Yashan gold mine, where there was expected to be an abundance of silver. After initial surveys found not just silver, but extractable gold, the Company launched its initial round of fundraising. The company has since come to agreement with the Chinese government and was able to begin operations in the middle of 2008. End
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