We scanned a familiar headline in The WSJ earlier today that gold was up yet again. Specifically, “Gold for December delivery, the most actively traded contract, rose 0.2% to $1,144.10 an ounce … [and is] set to end the week higher by more than 2%.” And according to Kitco, the current gold spot price was up 54.22% for the past 12 months as of 12:55 PM CT on Friday. But where does this particular gold rush leave other commodities? Not to mention actual demand from a manufacturing and industrial standpoint? In our view, there’s never been a greater disconnect between the price of gold as an investment vehicle and perceived safe haven relative to true commodity demand in the industrial markets.
By Jason Busch on November 20, 2009
Obsessed with how companies manage, spend and save money, Jason writes about procurement, trade and supply chain issues @ Spend Matters. He has significant first hand experience developing and marketing technology and services products, has advised numerous companies on sourcing and related techniques as well as M&A pursuits. In previous lives before tech, he was a management consultant and merchant banking analyst.