(From Fund Strategy)
The price of gold soared past $600 per ounce last week, its highest price in 25 years, highlighting the debate between optimists speculating that the $1,000 mark may be in the offing and bears who worry a steep retrenchment is likely.
Gold set an intra-day, 25-year high of $605.60 per ounce on April 11, before easing back later in the week. It set an all-time high of about $680 per ounce in 1980, and some gold bugs think $800, or even $1,000, could be breached in the next couple of years. The yellow metal has delivered a 13% return since the start of 2006 and has risen in value by about 130% over the past five years.
The dollar-denominated Amex Gold Bugs share index of companies involved in gold mining is up 12% and 540% respectively over the same periods.