Gold Price Zooms to $1418/oz.

Gold closed above $1400/oz yesterday and has risen again today in most currencies and reached new record nominal highs in sterling (877.30/oz) and is targeting record nominal highs in euros.

Competitive currency devaluations and currency debasement is seeing all fiat currencies fall in value against gold. Gold traded in Canadian dollars rose as much as 0.5 percent to C$1,422.169 an ounce, the highest price since 1971 and in India gold rose to an all-time high of 20,525 rupees.

Gold imports by India, still the world's biggest consumer, increased 25 percent to 20 metric tons in the week to yesterday due to a surge in demand during the Diwali festival.

Gold is currently trading at $1,418.30/oz, €1,019.63/oz, £878.20/oz.

The total indebtedness of the UK, both public and private sectors will rise to GBP 10 trillion by 2015, and will remain equivalent to more than five times annual economic output, according to a report published by PwC.

This could lead to slow growth for decades and possibly stagflation. If interest rates were to rise, this debt would become extremely onerous and would likely see sterling come under pressure as happened in the 1970s.

Source : commodityonline.com