$654 an ounce last week, dollar crashing, Iran wigging out, gas prices at $3 per gallon, Helicopter Ben getting weak in the knees, inflation running amok, and yet, some still think gold is overvalued.
You ain't seen nothin' yet.
Gold May Gain for Eighth Week on Iran Standoff, Survey Says
Gold may rise for an eighth week, surpassing the highest prices since 1980, on speculation the escalating dispute over Iran's nuclear program will spark demand for bullion as a haven, a Bloomberg News survey shows.
Twenty-one of 32 traders, investors and analysts surveyed from Sydney to Chicago on April 27 and April 28 advised buying gold, which rose $19 to $654.50 an ounce last week in New York. Five advised selling. Six were neutral.
Gold climbed above $650 for the first time in 25 years after Iran failed to meet an April 28 deadline to cooperate with United Nations inspectors who are trying to determine if the country is making a nuclear bomb. Prices are up 21 percent since early January, when Iran resumed nuclear research
May 01, 2006
So, any HP'ers go out and invest in gold over the past couple of months?
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43 comments:
I'm heavy in oil (loads of stock options) and just bought a symbolic amount of GLD (to put some money where my mouth is).
TexStock
I'm with you Tex. And I just stuffed 1,000 one oz of silver eagles into my safe. I just sold my last house about three weeks ago in LA. Boy, was I sweating that sale!
I'm planning on riding this bull into the elections. After that, I think the fed is going to go for broke with rate hikes.
Check out SLV as well as GLD, SLV is the new silver ETF that started trading on Friday, I bought at the open.
Ok, I hate to be a spoiler about all this gold fever, but I have a question. Gold is mined in a number of countries. When the price gets high enough, what is to prevent them from increasing their output and moderating or reducing the price?
How come there is no talk about a "Gold Bubble?" Gold is at its highest level in 25 years. I am going to be the first to utter it.....
"Gold Bubble"
Uh, oh.......did i just cause the pyramid to fall?
When the price gets high enough, what is to prevent them from increasing their output and moderating or reducing the price?
Nothing. In fact, formerly abandoned mines can become profitable if the price goes up enough. It takes years to get the momentum, though.
I suggest that people sell their homes and invest their capital gains, along with their entire life savings and invest in gold.
If No One Whispered 'Gold Bubble,' There'd Be No Worry
A pyramid scheme, with each new round of players making earlier rounds richer, is a foolproof way to make money — until it isn't.
What is the breaking point? Probably about the time some spoilsport whispers "pyramid scheme," and there's a mad dash for the exits.
How come there is no talk about a "Gold Bubble?" Gold is at its highest level in 25 years. I am going to be the first to utter it.....
Because bubbles are not really about price, it's about the credit and leverage that causes them. Crashes happen when people are forced to sell because they borrowed to make a purchase (foreclosures, margin calls, etc).
Just because something makes a new high does not mean it will turn around. I personally started buying into gold when it was making "new highs" at $437.
I dont know anyone that owns gold.
When my nieghbors, friends, co-workers, bartenders talk of the gold they own, Then I'll know It's a bubble.
Untill then I'm going to believe It's just governments buying up all the gold to either get out of dollars or back the amount of paper money they printed.
I do think that gold will go into the wonderful world of bubbleville, but that will not happen with the dollar in free fall. The only thing that will stop that will be the fed raising interest rates.
And on a second point, What do you think will happen when the housing bubble really hits and the dollar is in free fall? I'll tell you. The Chinese and all the other counties who have been buying our debt will sweep in and start buying up real estate with all those depriciating dollars we sold them.
You can buy a lot of real estate with 1,000,000,000
Oh, in the last few nimutes that it took me to write those last two blogs, the hongkong gold market opend and I mad another $2.80 an oz. Bubblishas!
Your right! there's nothing better than to sell your last house and buy a Gold and silver. With the dollar falling so fast, we'll be at 700 by the end of May
Heres an interesting article about gold at "view from the peak"
http://websearch.cs.com/wm/search?query=bgrgls000&fromPage=WMTRoll
Scroll down to fridays post.
As for me, I afaid that the ETF's ( on line trading in gold and silver) are going to get hit when the central banks call in the shorts. That will finaly expose the fraud that has been taking place with the leasing of gold by the central bankers to prop up the dollar. I think it will be another Enron.
Here is a site where you can find a list of Mint approved metal dearers. Just scroll down until you see the approved dealer link.
http://moneycentral.msn.com/content/invest/extra/P143352.asp
Oh, in the last 1/2 hour, my silver is up 2.15% in the HongKong market. My God, I Am beginning to sound like one of those Housing Bubble idiots
Most opinions to why gold is going up here is just part of the picture. If you want a true education in economics and the future of our country, listen to the Financial Sense Radioshow that is broadcast/podcast via the web. What he has to say will open your mind to a picture most media outlets don't even cover. They bring in authors of books about the economy and discuss facets that will blow your mind. Highly recommended!
http://www.netcastdaily.com/fsnewshour.htm
I am new to this blog.
Everyone on this site appears to be in agreement that house prices are going down.
But there seems to be an argument over the direction of gold.
Most of my co-workers are having trouble making the mortgage payments; one girl in my department just got hit with forclosure last month.
How will I know when it's a safe time to buy a house?
I have all my money in CDs. What happens to my money if the dollar crashes?
Susan:
Listen to the:
http://www.netcastdaily.com/fsnewshour.htm
You'll have a better idea what to look out for.
Gold up +$4.40 to $656
Silver up +$1.20 to 13.80
THE TRAIN HAS LEFT THE STATION- AGAIN!!!!
Gold up + $7.70 to $659.30
http://www.kitco.com/market/
Look at the third chart down, the 'World Spot Price' MARKET IS OPEN
It's now $559.60 I wonder what it will be by morning??????
Maybe I was wrong. $670 this week?
WAR seems Inevitable
Turkey Refuses U.S. Request To Allow Attack On Iran From Turkish Base
Click Here
gold is NOT at its highest in 25 years. if we account for inflation of apprx 3% each year since that gold's high, the $850 an oz or so in 1980 is equivalent to approx $1780 an oz in today's dollars. I'm buying gold not so much as an investment, rather as protection for my wealth.
it's absurd... us offering turkey a nuclear reactor in return for using their land/air to attack Iran!!!! how absurd can it get?
gold is far below its 1982 peak in real terms
Susan, what city do you live in?
"Most of my co-workers are having trouble making the mortgage payments; one girl in my department just got hit with forclosure last month."
This idea that gold is any more valuable than the dollar ultimately is pretty stupid. No other currency internationally is in any position to replace the dollar, and I've had this confirmed by trained economists and reports from the European Central Bank. of course, the Yen might go up, but any real tanking of the dollar will pull all ships down with it, including gold. I guess if people are forced to emigrate overseas, then, sure, gold will be worth more than the dollar, but what will happen in the streets by that point? Plus war with Iran is not inevitable, as neither side really wants it, and Iraq may resolve its problems within a year also, now that the Shiites are giving up the interior ministry. What do you think will happen to the price of oil if we wake up someday and Iraq's production is shooting up and a compromise is reached with Iran?
My prediction is it wont be that obvious but the markets should start creeping down soon. Look for more to catch the falling knife.
All these morons who imagine the end of the world are missing the point that its just as likely the world wont end, and if the world does end, then you cant eat your gold and silver bars, and they might get stolen from you the minute you show them. This whole discussion in an exercise in gross stupidity. But yeah, real estate is coming down. All speculative markets end. Copper costs $1 a pound to produce, so its not gonne stay at $3.25 forever. Be as worried by the economy coming apart after all this speculation collapses as much as anything else.
If gold was so inherently great, then why was it stuck in the basement for years and one of the most rotten investments you could make? Sure, its value in inflated dollars should be near $2000 an ounce. The fact that it isnt just shows that its a lousy hedge against inflation. 3-5k an ounce? In your dreams.
Yeah, sink all your money into gold....ok. Who knows, you might be right, and you might be WRONG. When oil comes down and the geopolitical situation smooths out (if it does) then oil and gold will collapse at the same time, and that will be a fun ride to watch from the sidelines I guarantee you.
Money is meant to be spent on living and luxury. It is not meant to be horded because it always loses value. Paintings are about the only thing that beats inflation, not gold.
Gold acted perfectly when the dollar was strong the pog fell. When the dollar lost value the pog rose. A 5000 year history is available for all who are not familiar with the yellow metal. Who is going to sell their gold in the future for dollars? Not me. Those of you who see a gold bubble are blind to what is happening with our country and its currency. The dollar is not pegged to a certain amount of gold and it's falling fast. UKNOWWHOIAM, yes I know. Your that stupid realtor from Colorado who didn't think the was a real estate bubble. Now give everyone your brilliant advice on gold.
I don't think you get it. Gold isn't like the housing market. It trades like stocks. How many people whish they bought energy stocks. We all know that they will eventually drop. But that is the rush of the market. When you think the market will drop, you sell. I can sell my gold in one day. I don't have to hire someone, and put a sign out on the curb, and wait 30 to 180 days. My girlfriend won't talk to me about all the wonderful memories. Get it?
Yeah yeah, when oil comes down. When we suddenly discover all of the great big oil reserves. When the world demand falls back putting downward pressure on prices. When those peak oil nuts finally go away just like those housing bubble nuts.
I have some news for you folks and you can say you first heard it at HP from Tom. PEAK OIL IS HERE. Check out the well outputs, new discoveries, supply and demand, and oil sand production curves. PEAK OIL IS HERE!! PANIC!! PANIC!! Head for the hills!!! Attack IRAQ and IRAN!!!
I'm about half precious metals, half energy. I got in fairly early ('03-'04) and it's been a nice ride so far.
I bought some silver, and put some money in a gold fund. Not a ton, just a few thousand $. I'm too chicken because I need my money for my ranch I'm building. Maybe I will be sorry a year from now.
Oh, and I bought platinum earrings. Does that count? :-D
Anonymous said...
"Check out SLV as well as GLD, SLV is the new silver ETF that started trading on Friday, I bought at the open. "
Thanks, nonny...I was meaning to check on that.
C in ABQ
I just bought another 100 ounces of silver this morning, and my coin dealer said the gold coins are going out faster than their coming in, but the reverse for silver.
Why is gold percievd to be hot. Can't eat it, can't heat your house with it. What's up with gold? Sounds weak to me. Let's drive it down!
Gold and silver are climbing because of the "I want" market in China, Brazil and India. Good for you if you made it, but soon to be bubble. Same as oil. If you bought gold buillon, it's got to be assayed.
Ignore JP's disinformation machine.
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