Richard Wainwright, CEO at Clarkson Black Associates in Seattle noted Wednesday Gold Prices Have Surged, Settle at New Highs

Richard Wainwright, CEO at Clarkson Black Associates in Seattle noted Gold prices surged to record highs Tuesday as investors rushed into the safe-haven asset on global currency problems and a weaker dollar. End Quote

(1888PressRelease) October 08, 2010 - Gold for December delivery settled $23.50 higher at $1,340.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,342.60 and as low as $1,313.30 in Tuesday's session.

The U.S. dollar index was slipping 0.89% to $77.75 while the euro was up 1.16% to $1.38 vs. the dollar. The spot gold price Tuesday was adding more than $25, according to Kitco's gold index.

A slew of data and announcements which highlighted the weakness of global currencies and the health of governments were responsible for this recent rally in gold.

Richard Wainwright, CEO at Clarkson Black Associates in Seattle added, "The weaker dollar, combined with strong physical demand, had created a favorable environment for gold prices to set new highs," A slew of data and announcements which highlighted the weakness of global currencies and the health of governments were responsible for this recent rally in gold."

"The weaker dollar, combined with strong physical demand, had created a favorable environment for gold prices to set new highs,"

First off , the Bank of Japan slashed its interest rate to nearly zero and might create a fund of $60 billion to buy government securities and other assets in hopes of devaluing the yen after it rallied to a 15-year high earlier this year. Australia also kept its interest rate unchanged.

Over in Europe, Moody's announced that it was putting Ireland's Aa2 debt rating under review for a downgrade. This comes a day after the country cut its growth estimates for 2010 and 2011 and as the government is bailing out its financial system.

In the U.S., Federal Reserve Chairman Ben Bernanke gave his clearest signal yet that the Fed is ready to expand its balance sheet and buy more government debt in order to jump-start the economy.

Richard Wainwright, CEO at Clarkson Black Associates in Seattle continued, "Additional bond purchases have the ability to ease financial conditions." He also defended the Fed's $1.7 trillion asset purchase program which began in January 2009.

There is still some uncertainty as to how the Fed will execute on another round of quantitative easing -- whether it will be another large-scale, short-term program or a smaller and longer round of purchases.

All this global news was a perfect cocktail for gold prices as they underscored the fragility of paper money. Anytime a government intervenes in its currency market it points out how quickly paper currency can be devalued and highlights gold as a form of money which retains more worth.

The more U.S. dollars that are printed the more dollars it takes to value an ounce of gold, which not only raises the metal's worth but also makes it a safer place to preserve one's wealth.

But with gold's pullbacks minimal and its rallies in double-digits, it's hard to know how to buy the metal. The popular gold exchange-traded-fund, SPDR Gold Shares, currently holds more than 1,300 tons as investors piled into the metal in September.

Silver prices settled up 70 cents to $22.73 while copper closed 6 cents higher to $3.72.

Clarkson Black Associates is a Seattle based middle market Boutique Investment Banking and Advisory Firm offering specialist advice and services to both Private and Public companies.

Clarkson Black Associates team of Senior Investment Bankers has extensive experience and track record of servicing the need of Middle Market companies. Its philosophy is to work closely with Promoters of companies to create customized and innovative solutions.

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