Gold nearing $600. per oz

[formercia]

and other precious metals soaring. The Plutocrats are cashing out and putting their money where it can't lose.

Sure, sell your house and buy into the Stock Market.....right...

http://www.kitco.com/market/

[Sammy Pepys]

1. Too expensive for my blood....

...but I hold some so that's cool.

[Warpy]

3. I got mine the old fashioned way

I inherited it.

I need to get it reappraised, though. $600/oz is just plain nuts.

[Sammy Pepys]

6. I thought you were going to say...

...you panned for it. :)

[Squatch]

2. Actually, my stock holdings are up 8.35% YTD

and up 33% last year.

[Sammy Pepys]

7. I'm at 9.19% YTD overall right now...n/t

...

[TechBear_Seattle]

4. Probably not the American plutocrats

Given that the price of gold is set on a global scale through international markets and exchanges, I am inclined to think that the increase has global reasons and not just American. Far more likely are extremely wealthy oil sheiks in the Middle East transferring billions of petro-dollars in to something easily transported and difficult to trace, in anticipation of American invasion. There has also been an large increase in the size of the luxury market in the last year, with jewelry topping the list of hot purchases. The increase in gold prices could very well reflect jewelry makers running low on their reserves and buying up extra. Commodity markets can be funny that way.

Another thing to look at are prices in the stock markets. Over the last few months, there has been no dip in stock prices that corresponds to an increase in gold prices, so it is unlikely that money is being transferred from one to the other.

Also, precious metals are historically a poor investment choice: the market is pretty volatile, and high commissions for buying and selling eat in to any increase in price. Plutocrats looking to shelter their money would be far more likely to go in to real estate or foreign investment markets than in to gold.

Added I found this site, which offers a three year historical graph of metal commodity prices:
http://www.infomine.com/investment/metalschart.asp

It looks like the price of all metals has been going up over the last three years, and at about the same rate. I doubt that the very rich are investing heavily in nickel, lead and aluminum :rofl:

The increases mainly reflect the industrial boom caused by the war in Iraq, with gold and the other precious metals being lifted by the general tide.

[Cassandra]

5. It's not that gold has gone up...

but that the value of the dollar has gone down. My jewelry designer friends in Europe have told me they haven't had nearly the gyrations of gold in Euros.

[TechBear_Seattle]

9. Ah, I didn't think to check other currencies

I know that the USD is dropping and has been since the invasion of Iraq (coincidence? Unlikely.) That is probably a bigger influence than any of the other reasons I've mentioned.

[Sammy Pepys]

8. Precious metals historically...

Also, precious metals are historically a poor investment choice: the market is pretty volatile, and high commissions for buying and selling eat in to any increase in price.

Right on. There's a place for them in many portfolios, but they're so inconsistent in the long term that any big bets in that arena are risky.

[Cassandra]

10. My jewelry samples were mostly made when gold was...

from $260-300. So melting it would bring a pretty good return. It helps to be in the business and know which refiner gives a good percentage.

[Sammy Pepys]

11. Very true

Of course, depending on your investment style and goals melting might not be an option.

[mitchtv]

12. we have , more as an insurance from

being wiped out completely, also to cross the border ifit becomes necessary

[formercia]

13. better return than the Stock Market.

[lonestarnot]

14. Wooohoooo! I have 2 gold molars! I'm rich! I'm rich!

[leftchick]

15. how about silver?

I wouldn't mind selling the set in my closet I never use.