Highest Ever Gold Prices in Pounds Sterling

2008 Starts With More Records
The first trading day of 2008 started with not one, but two all-time record high gold prices in sterling. If our gut-feeling is correct, these will be the first of many.
After a 32% gain during 2007, gold started the new year strongly with a jump of over £10, from a fix of £417.624 to $427.824 on Wednesday afternoon's fix.
As we were writing this, late Wednesday afternoon UK standard time, gold continued to surge, hitting around £434 per ounce, over $857 in US dollars, and over €580 in euros.
It looks set to fix tomorrow at a new all-time dollar, sterling and euro high.

Watch This Space!

29th October 2007
The London a.m. fix on 29th October 2007 was £385.12 in pounds sterling, a new all time record high. This fixing price in US dollars was $792.50 and in euros €549.851.

2007 - A Record Year for Sterling Gold
By the 28th December 2007, with one final trading day left this year, gold reached its 14th record all-time high, and as we wrote this, was trading at over £419 per ounce, so it looks at though it might hit yet another record on new year's eve.

Media Myopia
Yet again, we have seen no mention of the record prices in the UK media, which seems to be quite myopic, and only looks at the US dollar price of gold. When this hits $850, we predict there will be universal proclamation of it. This magic figure might be broken before the end of 2007. Forecasts of gold prices for 2008 are bound to include $900, $950, and $1,000 or more.

Sick Sterling
One thing that these recent sterling gold highs does underline is the weakness of the pound sterling, which has fallen over 5% against the euro in the last few weeks. and 4% against the US dollar. Since 1980, sterling has dropped by almost 10% against the greenback. The exchange rate at the 21st January 1980 afternoon fix was $2.207104; at today's (28th December 2007) afternoon fix, it was $1.993325.

Record High Gold Price in US Dollars
The previous all-time record high gold price in US dollars was reached on 21st January 1980, fixing at $850.00 on that day's p.m. fix.
This morning (12th May 2006), gold fixed at $725.75, a 25 year record, but still 15% below the highest recorded dollar price. Many now believe that it is only a matter of time before gold hits its all time high in US dollars also, perhaps on its way to $1,000+. Who knows? We certainly would not want to bet against it!

Highest Gold Price in Euros (EUR)

Record High in Beijing
The record price in Chinese Yuan was achieved on Tuesday 4th April 2006, according to the Beijing Daily newspaper, hitting 170 yuan per gram (21.25 dollars).
"Gold has never been sold at such a high price in Beijing," said Wang Jian, general manager of the Gongmei Mansion Gold Store, told the paper. "I doubt whether consumers will hesitate to buy gold ornaments now," he said.
Gold dealers in China's capital reacted cautiously in raising prices, fearing a drop in sales despite the fact that prices in southern China had surged to 178 yuan (22.25 dollars) per gram.
China is the world's third-biggest market for gold after India and the United States, according to the World Gold Council, an industry organization. Last year Chinese demand for gold rose 8 percent to more than 250 tons

Where Next?
Where does it go from here?
Gazing into our crystal ball, we would be surprised if it did not go on to break the all-time high in US dollars before too long.

2007 Gold Prices in Sterling

Lowest Recent Gold Price

Bull Market?
Does the drop after this price peak mean an end to the gold bull market, we believe not, more of a correction.