Gold and silver made new highs on Friday morning, with gold reaching a record high at $1282 per ounce. New buyers continue to flock towards the gold market, buying the yellow metal aggressively. Traders rushed into the gold market this week as a new government report about price inflation showed rising costs for goods.
Silver has been climbing steadily alongside gold, gaining $3.25/oz (+18%) over the last month. Silver traded over $21/oz on Friday, a price not seen since 1980.
In the winter of 1979/1980, the silver market reached its all time high near $50/oz as the Hunt Brothers, Texas billionaires, allegedly attempted to corner the silver market, buying nearly one-third of the available silver worldwide. The Hunt brothers ultimately failed to corner the market and lost over $1 billion in their attempt. Since the 1980 rise and fall in silver, the market has had an enormous range, trading between $3.50/oz and $21/oz.
Russian Ban Hits Hogs Hard
Thursday, a rumor hit the hog market that Russia had imposed a ban on pork imports due to health concerns, causing a strong drop in the meat markets. However, the sell-off was moderated when the Russian press secretary stated that rejections would be limited to only two pork-packing plants in North Carolina. The time-tested traders' adage of "sell the rumor, buy the fact" applied in this case as October hog futures, which had fallen over 2% on the rumor, rebounded more than 1% on the Russian clarification. October hog futures were trading at 78 cents per pound in early trading Friday.
Crop Prices Keep Climbing
Corn, sugar and cotton prices rushed to new highs on Friday. December corn reached $5.11 per bushel, October sugar hit 24.99 cents/lb and December cotton soared to 97.8 cents/lb. These three markets have been supported by increased international demand and troublesome crop conditions over the recent months.