Gold for June delivery added $3.80 to settle at $1,498.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,506.50 and as low as $1,493.80 during Wednesday's session, while the spot gold price was adding $3.40, according to Kitco's gold index.
Silver prices jumped 54 cents to close at $44.46 an ounce after breaking the $45 level.
Gold has surpassed many analyst expectations for 2011, with Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, increasing his price target to $2,000 in 18 months and silver to $100.
In 2009, "we had central banks starting to buy," says Barisheff, "and once you [have] institutions ... coming around to the conclusion that they need to add a meaningful percentage" prices will go higher. Barisheff says there is only $6 trillion in above-ground supply of gold, with $3 trillion of it being bullion. Out of the $3 trillion, half is in central bank vaults and the other half is in private hands. Financial assets are worth $200 trillion, not counting derivatives and real estate, so any movement out of the $200 trillion and into the $1.5 trillion would be huge. "The only thing that can adjust is the price."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV