The price of gold continues to make new all-time highs. One of the biggest reasons for the rally is continued international criticism of the greenback and the trend of central banks keeping their cash in gold instead of U.S. dollars.
In India, the finance minister said that the economies of Europe and the U.S. had collapsed, and that the Indian central bank bought 200 tons of gold. The Indian Fed apparently has had enough of the crashing dollar and wants to diversify their reserves. Their decision to exchange $6.7 billion in cash for gold is equivalent to 8% of the world’s annual gold production and sent prices of the precious metal soaring.
Higher gold prices are helping mining stocks. Today, Randgold Resources (GOLD) reported third-quarter earnings of $11.32 million which is a big turnaround from the loss of $1.43 million they reported for last year’s third quarter.