In a world of confusion amidst collapsing stock markets and weak currencies, gold shines.

The gold price soared to yet another record high early Wednesday, surging as much as $11.50 to $1,672.80 per ounce before backing off to trade just under the $1,665 level. The price of gold has gained $165, or 11%, since the end of the second quarter, bolstered by a slew of soft economic data in the U.S.

Investment demand for gold, silver, and other precious metals such as platinum and palladium, continues to rise while the appetite for conventional stocks falls. Even central banks have recognized the place precious metals should occupy in a portfolio, evidenced by this week’s news that the Bank of Korea recently purchased $1.24 billion of gold. The SPDR Gold Trust (GLD), a proxy for the gold price and the world’s largest gold ETF, traded to a record high early Wednesday, rising $0.00 to $162.00 per share. COMEX gold futures, per the December contract, reached a fresh record high of $1,675.90 per ounce.

“In a world of confusion amidst collapsing stock markets and weak currencies, gold shines.”

The comment above was made today by Dennis Gartman, the long-time commodities investor and author of The Gartman Report.

In the latest edition of his daily investment letter, Gartman reiterated his bullish stance on gold, particularly in non-U.S. dollar terms:

“What can one say about the precious metals other than note that gold has gone to new highs relative to all of the major currencies and is especially so in relation to the EUR and Sterling, where one level of resistance after another has been made to appear foolish and non-existent and new highs are forged almost every minute. We are seeing gold become the world’s most readily accepted reservable asset, for in a world of confusion amidst collapsing stock markets and weak currencies, gold shines.”

“Gold is racing higher and we ascribe today’s and yesterday’s strength not to dollar weakness but to political dissension and especially to confusion in Europe where the EUR is under attack and where the very nature of the Union is under assault. Thus…with the EUR faltering relative to the Swiss franc, is it faltering relative to gold too. That is as it should be. We are long of gold in non-US dollar terms and we expect to remain that way a while longer.”

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