Gold price hits 25-year highs

[lovuian]

http://feeds.bignewsnetwork.com/?sid=5a163c6efeb33429

Gold prices jumped more than $18 an ounce Friday to close at $654.50, a level not seen since late 1980, MarketWatch reported.

In the last four weeks the precious metal has increased almost 12 percent in value on the futures markets.
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Very Worrisome times!!!

[jdelullo]

1. I think it was on the CBS evening news....

Saw a piece that sad the gold market in Iran is ridiculous. Their version of the stock market is buying it like crazy. Shows this is a universal thing, not jsut domestic.

[dweller]

2. their version? the Bourse?

just curious.

dp

[muriel_volestrangler]

8. Buying gold when your country is threatened with attack makes sense

Your currency may be made worthless if Bush overthrows your government by force, and an easily transportable, durable item that can be sold or exchanged anywhere is a useful backup. Buying it in the USA, or other countries unlikely to become a warzone, is more a sign of "I don't like the dollar, but I haven't the faintest idea what to do, so I'll buy some metal".

[0007]

13. Does one take a chance and put it in a safe deposit box

or risk a paper certificate?

[Old and In the Way]

3. Buy futures in copper....

(cash buy/spot, based on the LME per metric ton (2200 lbs))-

3/29/04 1/25/05 4/28/06

Aluminum $1663 1835 2770
Aluminum Alloy 1560 1642 2580
Copper 3098 3146 7399
Nickel 13930 14990 20150
Zinc 1087 1210 3439

[TexasLawyer]

5. I'd say buy anything you can readily trade

when we're finally reduced to bartering and begging.

[Toucano]

6. Shit! I put all my money in Beanie Babies and Cabbage Patch Dolls!

My broker said they were a sure thing. Dammit, Mother!

[DoYouEverWonder]

11. One of the reasons why I just planted more citrus trees

aside from loving the smell of their blossoms.

I figure between that and a couple of these guys



and my fishing skills, I should be able to eat for awhile if it came down to it.

[TexasLawyer]

4. So odd

After all that "great" economic news today! :sarcasm::sarcasm:

Could it be that people don't believe Washington's numbers?

[Spider Jerusalem]

7. Not strictly true.

It's extremely misleading that these figures are reported as 'highest level since 1980' and no account is taken of the inflation factor. Current price for an ounce of gold, in 1980 dollars = $257; 1980 high of $641, in 2005 dollars = $1627.

[lakeguy]

9. i wonder how much the current increase in the price of gold is tied to

the fall in the value of the dollar. is it all demand that is increasing the price or is part of it the dollar tumble?

[teryang]

10. Exactly, the move in silver and gold is just getting started

The price increases in the last few years have been characterized by periodic sell offs. The market in silver is relatively small and specialized. As of yet, large numbers of ordinary people are not participating.

The central banks have been manipulating markets by selling short for years and leasing gold reserves at ridiculously low rates. When the short sellers and lessors start panic buying the metals will move into a hyperbolic mode. Large shorting attempts are still in offing from the largest shorts to try to persuade investors, speculators and hoarders that investing in metals is in the nutcase category. It isn't. But there will be extraordinary volatility. With large sources of capital in the mideast and Asia trying to shore up their currency reserves with marginal positions in gold, the bankers are contending with larger players, not just smaller investors and hedge positions. Printing money and offering credit below inflation rates is whats nuts. Tried to make any major purchases of machinery or materials lately? You'll find that the price increases are enormous. It is rumored that China has a huge short position in copper that is failing. It is understandable that with their huge construction and electronics needs that they would short copper to manipulate prices. All the talking heads call for copper to fall, yet it keeps rising.

Meanwhile, the corporate financial talking heads tell the public the "core rate of inflation" is one or two percent and everything is hunky dory. Who believes this?

[54anickel]

14. Sshhhhh, you're letting the cat outta the bag. There is relatively no

inflation, damn it! :evilgrin:

[formercia]

12. Chinese government allows the private purchase of Gold

The Chinese have traditionally favored keeping savings in Gold. Now that the PRC government is allowing private purchases by its citizens, the demand has increased significantly. They may not buy large quantities individually, but a couple of Billion people can create quite a demand.

You can Thank Poppy Bush for facilitating off-shoring to China and thus creating a greater demand for resources.

[leesa]

15. Just think how much the Bush family is making with their little gold mine

venture in Canada! Anyway it goes, they win.