$657 today and rising. Feels a bit lofty again at these heights if you're a trader, but you got to give the yellow stuff it's due, especially long-term holders. How many gold bars will it take to buy a house in 2010?
Inflation up. Housing down. Dollar down. Stocks up. Gold up. What's that tell you?
LONDON (AFX) - Gold headed towards fresh six-month highs, buoyed by fund buying as oil prices moved higher and the dollar moved down.
The dollar's recent slump has prompted hedge funds to turn their attention to gold as it is seen as a hedge against inflation.
Also, in the background speculation is mounting speculation that gold may well turn out to be the next metal to enjoy a good run.
February 02, 2007
Gold at $657 / oz. You don't hear a lot of people making fun of the yellow stuff anymore, do you?
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20 comments:
Keith,
I'm no Bible thumper, but I believe there's something in the Good Book about the value of *EVERYTHING* going to zero within a period of 1 hour when that fateful moment comes. In other words, buying gold is like buying a home - if it makes you feel better, do it...
The inflation play in gold took a hit this morning with the higher than expected unemployment #.
Keith,
If you were the leader of Iran, knowing that the dumbya has 2 air craft carriers off your coast, and has threatend war repeatedly, and as a fact conncocted his war of choice against Iraq based on total bullscheit; would you consider all oil sales being finalized in gold payment? Knowing that the US will freeze all your accounts with cash in them, thereby making that money as good as stolen.
Further the IMF is said to be selling 400 tons of 'its' gold. Last I checked the IMF had no gold, its member nations had gold, but then again someone ended up with all those truck loads of Iraqi GOLD that was confiscated when we attacked her...
Perhaps there is just a little more to operation 'Iraqi freedom' than meets the eye... And perhaps those Iraqis are fighting for something we are not allowed to know about here in the states...
Got gold?
Gold and silver not looking too good today with the manipulators trying to crush it. Just buy Silver...sit back and watch the fireworks eventually.
Wow, Keith's logic again. Use the same logic he uses with homes and he'd call you an idiot. Lets see, bought my house for $240,000, went up to $280,000, dropped to $195,000, back up to $205,000 so I'm right, buying a home is a sound investment and if I hold it long enough....
You can't eat gold. You can't live in gold. It won't keep you warm at night. I was on a site reading about silver and prices trends since 1000 a.d. and in todays inflation adjusted dollars the price in 1010 a.d. should be $4,000 an ounce. Metals never go down in value, remember? And remember the Hunt brothers? Silver at $50 an ounce in the 70s? What is that inflation adjusted and people get all excited at what, $12 an ounce? And gold in the 70s at $850 an ounce, what is that adjusted for inflation? And you get excited at $657 an ounce? Yep, gold is a sure store to protect against inflation alright. Lets see, a home in the 70s, $35-60,000? Today?
The quickest way to wealth is not what you invest in but what you don't buy. Buy only what you need. Don't buy fads. Don't buy what you can't afford. Don't use credit except for large ticket items. Don't ever sell your first house, don't ever get divorced, don't ever have children. Save, Save, diversify your investments-bonds, money market, cash, and yes, maybe 10% in metals, but staying out of debt should be your priority.
Who knows, maybe an alchemist will pop up and find a way to turn base metals into gold and then what? Think of the issue now with diamonds. The new man made are better and cheaper to produce and without that laser etching inside virtually impossible to tell the difference between man made and natural. Does it matter? So those who run out and invested in diamonds for the past 100 years? What then if the public doesn't care either?
And not being a christian I still agree with the biblical injunction to not be concerned with earthly treasures that rot. Concentrate on living and enjoy life, friends, nature, the beach, the mountains, the desert, family, that nice cup of coffee.
How many bars of gold will it take to buy a house in 2010? That's easy, about the same number as in 1910, 1950, or 1980.
Wealth is worthless in the day of wrath, but righteousness deliversfrom death!
Whoever trusts in his riches will fall!
The Bible, God's Holy word is full of some of the most timely and relevant topics that we are dealing with right now!
'Love' of money is the root of all sorts of evil!
Read it, learn from it! There is a God, a creator who is calling out to us! The Bible is a timeline as well. Prophetic, it is telling us, time is short! It's not scary, or asking anything of you, but to believe in the Lord God Almighty!
To you treehuggers, you are worshipping 'the creation' not the creator! God's handywork is all around us......if your willing to see it!
Salvation is a gift, available to all! "All who call on the name of the Lord 'will' be saved!!!
The price of gold really is the only hole in the housing crash argument. The dollar has fallen over 50% vs. the price of gold, 40% vs. the price of the Euro, and 50% vs. the price of oil all in the past 5 years, so why shouldn't we expect house prices to stay where they are?
The dollar has fallen vs. the price of housing (hard asset) by roughly the same amount as every other commodity over the past 5 years. Maybe the market's just telling us the dollar is over.
Matthew 6;24 You cannot serve both God and money!
Now listen, you rich people, weep and wail because of the misery that is comming upon you. Your wealth has rotted, and moths have eaten your clothes. Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. You have lived on the earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. You have condemned and murdered innocent men who were not opposing you!
James 5: 1-6
WOW!
DUMBEST POST OF THE YEAR!
"And the DOW ... well, the DOW has passed "the yellow stuff" and is about to lap it."
uknowwhoiyam said...
Gold isn't even keeping up with NASDAQ?
And the DOW ... well, the DOW has passed "the yellow stuff" and is about to lap it.
You better do a bit of research before you make a fool of yourself. Gold may have been in a bear market for a long time, but it's been in a huge bull market the past 5 years. It might be a really good time to sell the Dow, and buy gold.
Since we're doing Bible verses, here's my favorite, from John 2...
And the third day, there was a marriage in Cana of Galilee: and the mother of Jesus was there. And Jesus also was invited, and his disciples, to the marriage.
And the wine failing, the mother of Jesus saith to him: They have no wine.
And Jesus saith to her: Woman, what is that to me and to thee? my hour is not yet come.
His mother saith to the waiters: Whatsoever he shall say to you, do ye.
Now there were set there six waterpots of stone, according to the manner of the purifying of the Jews, containing two or three measures apiece.
Jesus saith to them: Fill the waterpots with water. And they filled them up to the brim.
And Jesus saith to them: Draw out now, and carry to the chief steward of the feast. And they carried it.
And when the chief steward had tasted the water made wine, and knew not whence it was, but the waiters knew who had drawn the water; the chief steward calleth the bridegroom,
And saith to him: Every man at first setteth forth good wine, and when men have well drunk, then that which is worse. But thou hast kept the good wine until now.
This beginning of miracles did Jesus in Cana of Galilee; and manifested his glory, and his disciples believed in him.
Not sure what this passage says about gold, but I'm pretty sure we should stock up on wine.
>>Ah GOLD! The portable asset...
Yeah, real portable, as in when you're fleeing from your home for your life and you're trying to carry 200lbs of it on your back, and then you finally arrive at your hiding place in the woods and have nothing to eat. Yeah, what an asset...which leads me to my next comment...
>> Instant cash conversion anywhere...
Taken in context, when all hell has broken loose, do you REALLY think your grocer is going to accept your gold? Try it today, and tell me how it goes. And if you think he'll accept it DURING the rioting/looting/roundup, you're more delusional than you know...
What you and others here don't understand is that the "they" behind our downfall have it *ALL* figured out - there's NOTHING you can do. To quote the Borg, "resistance is futile."
Gold started 2006 at approx. $625, now at $650, 4% gain. Dow starts at 12,400, now at 12,650, 2% gain. Inflation rages at 7%+. Yawn, it's the new economy, everyone gets screwed.
Yea, gold worked REALLY well in Jerusalem around 70 C.E. didn't it. I would rather invest in lead/brass and food. The reason gold has hit ALL TIME highs recently is that the dollar is shitting out. The dollar is worth-less than it has been and thus the increase in base metals. Don't for one minute believe that the international communities, including this government cannot "revalue" gold if things get too bad. They have done it several times before.
Kissenger is telling Congress about the secret plan to win the war. Welcome to the 1970's, and stagflation.
"By the bullion banks shorting gold," Chris says, "they deceived the world about the level of inflation and money supply growth, and basically they shorted gold to buy U.S. government bonds and collect the difference. If you've been assured that the gold price is going down, you short the metal and use the proceeds to buy government bonds. You're getting 5% on government bonds and the gold price is going down 5% a year, enabling you to close the short profitably, so you have a risk-free trade. You're getting 10%, as long as the central banks are willing to back you with more gold sales to keep the gold price going down. And I think everybody was happy with that. Financial houses, recruited as the banks' agents, were happy with their easy profits. The Treasury Department was happy because it boosted bond prices and kept interest rates down. And the whole world was deceived about the vast growth that was going on in the money supply. It worked for a while. Until they started worrying that they were running out of gold reserves."
Are they? we asked. Click Here
Some argue that gold will not make you wealthy, but that is not the reason one buys gold.
One buys gold to Preserve ones wealth.
For three thousand years, gold has been the choice of rich and not so rich as a means of preserving wealth, if not one's life too.
When South Vietnam fell to North Vietnam, the South Vietnamese who had gold were able to flee the country for the US, and with their gold they were able to exchange it for US Dollars and have cash to start a new life in the US.
There are undoubtedly more stories like this of those who used gold to preserve their wealth, such as in South America when hyper-inflation set in.
Those who had gold didn't have to worry about how they would eat, there were plenty of black market sellers willing to exchange gold for food, or for medicines for that matter.
While gold may not appreciate as fast as stocks and bonds, who among you here has 100% of your money in the stock market? No cash on hand or in a safe in case a financial emergency arises? Keeping all of your eggs in one basket, or investment, is risky no matter how you argue the point.
Do consider this:
In 1927 it took 2 ten dollar bills made of paper to obtain a twenty dollar gold coin from a bank.
In 1957 it took 5 ten dollar bills made of paper to obtain a twenty dollar gold coin from a coin dealer.
Today it takes over 60 ten dollar bills made of paper to obtain a twenty dollar gold coin.
Perhaps not as good as some well picked stocks, but if inflation keeps eroding the dollar, how will you be able to tell if the stock is doing well when the measure of the stock price (the dollar) is falling in value?
Sadly, the world has seen inflation and money debasement many times in the history of mankind.
Only those who chose the asset that has been accpted worldwide for three thousand years have been able to preserve their wealth, and in some cases, their health.
Try to view gold as a life preserver for your wealth, if nothing else.
"They who worship gold in a world so corrupt as this have at least one thing to plead in defense of their idolatry-
the power of their idol.
This idol can boast of two peculiarities:
it is worshipped in all climates, without a single temple,
and by all classes, without a single hypocrite."
C C COLTON
avacados at a dollar apeice, i remember 1995 when they were 10 for a dollar, thats inflation that inspired me to plant many avacado pits for seedlings, had some luck, but only short term, had expected to keep up with inflation, as 10 years of growth usualy produced long and short term results, renters would not tend to that plantings.
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