Gold glitters at record price on safe haven play

By QMI Agency

Last Updated: May 11, 2010 4:52pm

Gold prices jumped more than 2.5% Tuesday to hit a new all-time high as investors clamoured to the precious metal as a safety net after a $1-trillion European rescue package failed to quell fears of eurozone debt contagion.

Bullion hit $1,230 US an ounce to just past the previous peak set in December.

Gold wasn’t the only precious metal to shine Tuesday. Silver also rose 4.5% to a five-month high.

Maison Placements Canada President and Chief Executive John Ing recently told QMI Agency Europe's sovereign debt crisis has led to realization that even the euro, which was once one of the most in demand currencies, can be dragged down.

He expects gold prices to climb close to $2,000 US an ounce in the near future.

“That’s quite possible the way that things are unfolding,” he said.

The best way to invest in gold is through stocks, TSI Network editor Pat McKeough has said. Unlike bullion or gold coins, stocks don’t need to be stashed or insured and therefore cost less.