Again, gold hit a new record high today, December 2nd, 2009, soaring past the $1200 mark and ending at $1219.84. The news of gold’s record highs is everywhere, as is it’s affects on international economies.

According to both Felix Salmon, at Reuters, as well as Matt Walcoff at Bloomberg, gold prices were responsible for massive gains in the Canadian Stock market today:

Canada Stocks Rise on Record Bullion Prices…. Canadian stocks rose for a second day, led by materials producers, as gold prices climbed to a record on demand for an alternative to the U.S. dollar.

Similar sentiments were echoed in articles and commentary on Australia’s markets. David McIntyre over on The Sydney Morning Herald, in his Article, Gold Price Boosts Australian Stocks, proclaimed gold’s new record highs as the reason for the rapid growth of gold mining company stocks based in Australia:

Australian shares closed at a five-week high on Wednesday, up one per cent on the day, after record gold prices prompted a rally by miners of the precious metal.

There is still tremendous fear regarding the economy in general and the U.S. dollar (as well as other national currencies – but particularly the dollar) and that has caused this uptick in gold’s price. But, nothing has changed, we still have a record amount of national debt, little personal savings, and we just increased the money supply. Additionally, we have yet to see the effects of inflation and this increased money supply.

With a mass exodus of retiree baby-boomers on the horizon (and the monetary ripples this will cause with healthcare AND social security), we believe gold is going up!