While looking for a present for my daughter's birthday last week, I wandered into a jewelery shop but just as quickly as I dropped, I headed out. Not being one of those big shoppers, I suffered an intense bout of sticker-shock when I saw how much a simple gold necklace would have set me back.Bloomberg ran a story this morning saying the ride is not over. It seems prices are set to go even higher when news hit that Africa's top producers AngloGold Ashanti Ltd. (NYSE: AU) and Gold Fields Ltd. have halted output because of a power shortage.
Gold, which surged 31% in 2007, has gained 9% since the start of this year, breaking through $914/oz. Production issues, inflationary pressure and market volatility were all cited as reasons for gold's recent surges.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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