Boyd, Roosen, Quartermain: It takes grit, invention, luck to make the big time
Mining industry legends discuss the backstories on their multibillion-dollar successes.
Gold futures was approaching the $1,800 an ounce level in lunchtime trade on Thursday, building on a rally that kicked off a week ago.
Gold for delivery in April traded 0.88% or $15.70 higher by 1:00pm at $1,787 an ounce on the New York Mercantile Exchange. The precious metal’s gains for 2012 now stands at $185 an ounce.
Contract gold last settled above the $1,800 an ounce mark on September 20 last year but shortly thereafter the metal shed more than $100 over just a few trading days.
That was not the first time traders got cold feet after breaking an important psychological level.
A similar pattern was followed in the days after gold futures hit a record high above $1,900 an ounce in August. The yellow metal fell precipitously two days after hitting the record, losing $105 or 5.6% in value in a single day.
In 2011 trading in gold was the most volatile since 1980, with the gap between the year’s highs and lows coming in at close to $600 an ounce or a 32% range. In 1980, when gold hit a record $850 an ounce, the spread was even greater at more than 40%.
1980s record was set after a spike in oil prices following the Iranian revolution. Gold’s recent move higher is tracking that of oil which is trading at a nine-month high of $107/barrel on tensions between the West and Iran over its nuclear programme.
It took almost three decades for gold to breach the $850-level, which it did at the start of 2008. However, in inflation adjusted terms the 1980 price is still the highest ever – gold would have to hit some $2,400 an ounce to set a record in today’s money.
