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NEW YORK ( TheStreet ) -- Gold prices skyrocketed Tuesday to a record close as weak second quarter growth numbers out of Germany and indecisive action from EU leaders spooked investors into the safe haven. Gold for December delivery soared $27 to close at $1,785 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,789.80 and as low as $1,763.60 while the spot gold price was adding a more modest $14.20, according to Kitco's gold index. Silver prices settled up 51 cents at $39.81 an ounce while the U.S. dollar index was adding 0.05% at $73.91.
Gold prices were popping on a slew of disappointing growth numbers out of the Eurozone. The highlight came from the revelation that Germany's economy grew only 0.1% in the second quarter, 2.8% year-over-year. The first quarter number was also revised down. Germany is the strongest Eurozone economy and its near contraction reading weighed on its neighbors -- Eurozone growth slowed to 1.7% from 2.5% in the first quarter.
Ropiak says that there are very good reasons that traders and investors are looking for a safe haven from EU/US debt issues to low interest rates to portfolio diversification. "Gold has arrived as an asset class globally." Ropiak says that most portfolio managers now say that 5%-10% of one's portfolio should be in gold whereas 5-10 years ago that figure would have been unheard of. "I think that the structure of the investment base has changed," says Ropiak think that there are real reasons that people are in the gold market and it does seem that those issues will be with us for the foreseeable future." Recent 13F filings held no big surprises for gold. George Soros dumped more shares of the SPDR Gold Shares ( GLD) but initiated small positions in 14 gold and silver mining stocks, among them Randgold Resources ( GOLD), Newmont Mining ( NEM) and Pan American Silver ( PAAS). John Paulson initiated a new position in Agnico-Eagle ( AEM) while his largest gold stock positions remain with Gold Fields ( GFI) and NovaGold ( NG) at 24.7 million shares and 20.1 million shares, respectively. Paulson is still the largest holder of the GLD with 31.5 million shares. JPMorgan ( JPM) , on the flip side, was the biggest seller of the GLD and EFTS Physical Gold ( SGOL)but bought 25 million shares of the iShares Gold Trust ( IAU) , the cheapest gold ETF, to become its number one holder. The investment bank also has a small position in ETFS Physical Asian Gold ( AGOL) , where the gold is stored in Singapore. iShares Silver Trust ( SLV) saw a lot of red across the board as prices took a nosedive in May with Bank of America ( BAC), JPMorgan and Morgan Stanley ( MS) selling a total of 10 million shares. Goldman Sachs ( GS) sopped up some buying 3.3 million shares. Gold mining stocks were turning lower. Kinross Gold ( KGC) was flat at $16.39 while Yamana Gold ( AUY) was down 0.72% at $15.17. Other gold stocks, Agnico-Eagle and Eldorado Gold ( EGO)were trading lower at $63.70 and $19.61, respectively.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.