This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Gold Prices Settle Near Record

NEW YORK (TheStreet ) -- Gold prices pushed past the $1,400 level Wednesday in a session marked by thin volume and a weak U.S. dollar.

Gold for February delivery added $7.90 to $1,413.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,414.50 and as low as $1,401.50 during Wednesday's session.

The U.S. dollar index was shedding 0.77% to $79.78 while the euro was up 0.72% to $1.32 vs. the dollar. The spot gold price was adding $4, according to Kitco's gold index.

Was Tuesday's double-digit rally a fake-out or a breakout? Based on Wednesday's prices, gold is up 26% for 2010 and 400% for the last decade. The massive rally has some warning of a gold bubble and a possible top within the next two years.

Goldman Sachs (GS) says gold will top in 2012 at $1,750 an ounce, while Jon Nadler, senior analyst at Kitco.com, says gold could continue rallying in 2011 but will cap by the end of the year.

Others believe that the bull run is far from over and that if the consensus is a gold bubble, then in actuality the opposite is true.

"We're going to go into a period where there's a mania," says Rob McEwen, CEO of U.S. Gold (UXG). He believes the market is "about a third of the way there."

Despite the media hype about gold, most of the public doesn't own it. One is still more likely to see people selling their gold rather than buying it. Popular trading vehicle the SPDR Gold Shares (GLD) added 155 tons this year as investors piled into the physically backed gold ETF, but many money managers don't own it.

Jim Rogers, a legendary investor who co-founded the Quantum Fund, told me he was recently at a conference with 300 international money managers, and when asked, 76% of them had never owned gold.

"When you have a long bull market in anything, at the end everyone becomes hysterical, everybody owns it ... and then we will have a huge bubble in all of them," he says. Rogers estimates the commodity bull run, not just gold, is about halfway there.

Stock quotes in this article: GLD, GS, UXG 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs