Isra-Mart srl: Gold price higher than the price of platinum

www.isramart.com

The international price of gold has passed that of platinum, and is currently trading at above US$1900 per fine ounce.

According to Economist Chris Harmse this is not a good sign as it points towards a double-dip international recession.

Harmse says the increase is a result of uncertainty in international markets due to the US job data as well as the various debt repayments that have not been done. The uncertainty has led investors to more secure reserves which pushed the gold price higher than the platinum price.

"This is an indication that the world economy will slow down with profit and economic growth that will be far less than expected," Harmse said.

He added that job creation in South Africa will come under threat as the economies cannot move forward. The likelihood of another international recession has increased dramatically after America's poor credit rating earlier this year.