Gold is up strongly today to a new all-time high. The yellow metal is currently up to $1,033 an ounce which finally surpassed its last peak reach 19 months ago.
It seems that gold was running into a lot of resistance at $1,024 an ounce so once traders broke through that level, it was off to the races. One of the big reasons for gold’s latest rally is concerns over the dollar. I can hardly blame them. There’s even been lots of talk of replacing the dollar as the world’s reserve currency.
Lots of other countries are upset at always having to deal with the dollar. The major issue is that most of the world’s commodities are traded in dollars. If that changes at some point, the dollar will certainly feel the pain. The problem ahead is that the U.S. government has pumped so much money to help that economy, and it will have to start taking that money out of the system. If not, then the U.S. could face another serious bout of inflation.
As well as gold is doing today, gold stocks are doing even better. One of my top-rated gold stocks is GoldCorp (GG). The shares are up nicely today and it’s not far from a new 52-week high.
GoldCorp produces more than 2.3 million ounces of gold annually and has about 45 million ounces in proved and probable reserves. But don’t be fooled by the name–GoldCorp also owns 1.2 billion ounces of proved and probable silver reserves and 1.4 billion pounds of copper reserves. Silver and copper prices have been on a tear lately, and the diverse mining operations of GoldCorp makes it a great investment right now. GoldCorp is a great defensive buy for all you gold bugs out there.