LAT: Gold Closes at 22-Year High of $502.50

Gold Closes at 22-Year High of $502.50
By Jesus Sanchez and Tom Petruno, Times Staff Writers


Gold reached glittering new heights today, closing above $500 an ounce as investors bid up the price of the precious metal to the loftiest levels in more than two decades.

At the Commodity Exchange in New York, near-term gold futures rose $7.90 to $502.50 an ounce — a 22-year high. The futures price for gold, a global benchmark for the metal, has surged more than 15% this year.

Gold has nearly doubled since the spring of 2001 in a steady climb that analysts say reflects a confluence of favorable factors, including strong jewelry demand in up-and-coming economies such as India. Jewelry accounts for about 75% of annual consumption of the metal, according to the World Gold Council, a trade group.

Many analysts also point to a growing desire by many institutional and individual investors worldwide to add gold to their portfolios as a basic diversification move....

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The metal has benefited as some investors have become more concerned about the U.S. dollar's value — amid fears that the currency could sink over time under the weight of the nation's record trade and budget deficits....


http://www.latimes.com/business/la-120105gold_lat,0,7602035.story?coll=la-home-headlines

he accepts payment in gold bars from columbian drug cartels.

in like 3 years?

I worked in the jewelry industry back in the 80's when gold went over $800 an ounce. What a crazy time. Noreiga's guys use to come into town with bags of cash and buy all the gold they could put their hands on.

the dollar is backed by what these days

a lot of military hardware and an oil exchange