Gold continues to hit record-highs, US Dollar falls Special

For the last two years, gold bullion has traded between $800 and $1000USD but now one ounce of gold is making daily record-highs by on Tuesday at $1,176.40USD, according to CNBC. As a hedge against the pending of fear of inflation, investors are turning to gold as a hedge to protect their wealth. As well, Reuters notes that the precious metal is more attractive to non-dollar investors. Asia Times Online is reporting the United States Dollar index trading at 75.14 points. It is lowering in value as speculations run rampant that the Federal Reserve is going to keep interest rates at Japanese levels for quite some time. A trader at an Australian Bank said, “The Fed is sounding like they mean it about keeping rates low for an extended period -- way into 2010 if not 2011.” Silver bullion is trading at $18.70USD, Platinum is standing at $1,450USD and Palladium increased to $372USD. Richard Schmidt of IBuyYourGold in Toronto contacted Digital Journal by e-mail on Tuesday morning to state that he will be buying gold for quite a long time, until at least 2012. Schmidt, who posts ads everywhere on such websites as Craig’s List, Kijiji and others, stated in an e-mail, “Everyone blames the US for the rise in value of gold but it’s not just them. Sure, the US is printing gigantic amounts of money but every other country is turning on the printing press as well.” He added that his father has owned gold for twenty years, which means he has made considerable returns on his investment. Nevertheless, Schmidt remains confident that he will continue to make large profits and foresees gold going to $3,000 in the future. “I strongly believe that governments will not halt the printing press anytime soon so I know I will definitely continue to buy gold until I see some sanity from the central banks and politicians.” Digital Journal asked Schmidt if he ever felt concerned that gold wasn’t going to go anywhere because it remained stagnant for quite some time. Schmidt responded, “No. Plus I’d rather have it remain steady then seeing where the markets went during the same time period as gold. Remember, gold is real money and paper is not.” Many gold investors across the globe, such as Jim Rogers of Rogers Commodity Index and Peter Schiff President of Euro Pacific Capital and author of “Crash Proof 2.0,” believe gold is going to continue to go up for a long period of time. Although Rogers feels gold will stop at $2,000, Schiff has stated for years he sees gold at $5,000.