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Title: Gold Extends Record Price Past $1,900 An Ounce
Source:
WSJ
URL Source: http://online.wsj.com/article/BT-CO-20110822-712328.html
Published: Aug 22, 2011
Author: WSJ
Post Date: 2011-08-22 19:46:57 by Brian S
Keywords: None
Views: 11711
Comments: 27
--Comex December gold touches intraday record at $1,901.70 in after-market trade --Hopes that Fed will hint at more stimulus buoy gold --SPDR Gold Shares ETF outpaces value of SPDR S&P 500 ETF as investors flock to gold NEW YORK (Dow Jones)--Gold breached $1,900 in after-market trading as strong demand for a store of value pushed prices to fresh records. Gold has marched higher for six consecutive trading days, setting new records for four consecutive trading days including Monday. Gold continued making gains after Comex floor trading finished Monday, with the most actively traded contract, for December delivery, touching a record $1,901.70 a troy ounce. "This is a raging bull market," said Ralph Preston, analyst with Heritage West Financial. The December contract had gained $39.70, or 2.1%, to settle at a record $1,891.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Thinly traded August-delivery gold settled at a record $1,888.70 a troy ounce, up $39.80, or 2.2%, after touching an intraday record of $1,895.00. Gold's gains come amid growing speculation the U.S. won't be able to resist another round of stimulus and broader worries about the global economy. Investors are eagerly awaiting Federal Reserve Chairman Ben Bernanke's speech at an economic symposium in Jackson Hole, Wyo., on Friday. Last year, the Fed chairman raised the idea of further monetary stimulus in his speech, and many investors are buying gold in hopes of similar hints this year. "Should Bernanke put a damper on [stimulus] expectations, the yellow metal could well experience the correction that potential investors have been impatiently awaiting," said Edel Tuly, a strategist with UBS. While some investors are buying gold to hedge against inflation, which is likely to arise from another round of stimulus, others are worried the U.S. economy will slip into recession without such help and are purchasing gold to hedge against possible losses in other assets. Gold prices are also rising amid renewed appetite for a hedge against political uncertainty in the Middle East, where a civil conflict in Libya looks headed for a conclusion. Rebels seized control of most of the nation's capital, Tripoli, over the weekend. The whereabouts of Libyan leader, Col. Moammar Gadhafi, are unknown. Investors have voted with their dollars as the cloudy prospects of the U.S. economy and rising stock-market volatility cause more funds to be channeled toward gold. The value of SPDR Gold Shares (GLD), the world's largest physical-gold-backed exchange-traded fund, surpassed that of SPDR S&P 500 (SPY) ETF Friday. Net assets for SPDR Gold Shares totalled $76.67 billion as of Friday, outpacing the $74.38 billion of the S&P ETF. "While investors may be using gold to tactically hedge against current market concerns, there is a long-term strategic case for gold in all market cycles," said Jim Ross, senior managing director and global head of SPDR ETFs at State Street Global Advisors, the marketing agent for SPDR Gold Shares. Platinum settled at a three-year high amid spill-over buying as investors seek to diversify their holdings of precious metals. Platinum's success, in particular, was also aided by hopes of an early recovery in Japan's automotive production, which was stalled by a massive earthquake and tsunami earlier this year, Gero said. Platinum is widely used in making car exhaust filters, known as catalytic converters. Platinum for October delivery, the most actively traded contract, settled at $1,905.70 a troy ounce, up $30.80 or 1.6%, after touching an intraday high of $1,906.80. Poster Comment: Forex is currently quoting $1911.46
By Tatyana Shumsky
Of DOW JONES NEWSWIRES
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,877.50; previous PM $1,848.00
Dec gold $1,891.90, up $39.70; Range $1,858.00-$1,899.40
Sep silver $43.325, up 89.3 cents; Range $42.475-$44.090
Oct platinum $1,905.70, up $30.80; Range $1,881.20-$1,909.90
Sep palladium $765.10, up $16.30; Range $743.50-$766.80
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#1. To: Brian S (#0)
The biggest theft of human assets in ALL of human history is going on. Right NOW. Right NOW sovereign states are printing fiat money as fast as the their presses can run, and these governments are buying commodities such as GOLD. Nice trick eh? Even the Alchemists of Ancient lore never claimed to make GOLD out of NOTHING! Then once GOLD is INSANE, and the market collapses, then a BIG part of THAT wealth invested in that GOLD will just disappear. Guess whose wealth that will take that huge hit huge, whose wealth will disappear. BUT without some GOLD, you WILL be absolutely screwed. Great "game" eh? Yep. Suuuuuuuuuuucccccccccccckkkkkkkkkkkeeeeeeeeeerrrrrrrrrrrrrrsssssssssssssssssssss
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Bullshit. The fiat-money house of cards is collapsing. Better to put your money in something that they can't print into nothingness. But hey, RELAX, yeah? As wing-ding/loonymom keeps telling us, it's "just a bubble." Stupid.
The two sides in America are people who work for a living versus people who vote for their living.
Gold was $875 an ounce in 1980; that would translate to $2,400 an ounce today.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
And for years the actions of mainly a single person were all that was needed to keep the price of gold around 400/oz.
How do you figure? So they should print more money until the dollar goes down to $2,400 for an OZ of gold? Give it a couple of weeks or so, and it may reach that.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
No, that's not the point.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Right, the point is that you don't have a point, or are unable to articulate one.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
I posted an article for your edification Gold's Dramatic Rise and Fall in 1980s - Why It's Important. Enjoy!
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
What about silver and copper. You still seem to ignore the fact that you cant purchase abything for less than 192 dollars with the smallest practical gold coins (1/10 and 1/16 ounce) these days. You still need currency for handling purchases between 25 cents and 192 dollars. You still beed silver and copper as part of any honest currency system based on metals.
True. By BLS calculations for CPI from 1980 until now, the gold should be ~$2390/oz. This tracks with the government-generated inflation average of ~3% annually. It also assumes a gold price- as you quote- of $875/oz. But looking at the historical chart for 1980, average gold price was more along the lines of ~$620/oz. Thus, the inflation adjust price using BLS numbers would be ~$1920/oz- which tracks closely to where gold is currently at... But there's an underlying problem in your statement: The government LIES, all the time. Actual inflation over that same time-frame was ~8%. Since 1.08^32=11.9564, that means that gold should be ~12 times the 1980 price, or roughly $7412.96636/oz. What does this really mean? It means that go isn't in a "bubble." It means that the government has been actively surpressing the price of gold, ever since Nixon broke the Bretton-Woods agreement. [To those of us who do the deep- dive into this, this isn't a surprise.] The efforts of the government to suppress prices (and actual economic data such as CPI, inflation and unemployment) are failing. Gold will continue to rise, as the fiat-money house of cards continues to collapse. Silver should be (using the same real inflation rates) of $48 (going by 1984 silver prices). However, since the price of silver has been actively manipulated by large commercial banks for decades, even that number is very suspect. Considering how many silver and gold "certificates" have been sold- several magnitudes more than there is physical gold or silver in existence- the prices have been passively suppressed through this method, as well. But as the demand from Venezuela has demonstrated, their recall of their 90 tons of gold- a relatively small amount, considering the actual amount of gold that has already been mined- there are severe distortions in play in the gold market, at this time... When the distortions are cleared from the market- which will occur when the fiat-systems collapse- prices will more accurately reflect reality. The government games are coming to an end... and those holding fiat-dollars will find that their Federal Reserve Notes are returning their intrinsic value... as pieces of paper.
The two sides in America are people who work for a living versus people who vote for their living.
So then you're paying ten bucks a pound for hamburger and over four dollars a pound for a whole chicken (not organic free range)?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
SECTION. 9. And be it further enacted, That there shall be from time to time struck and coined at the said mint, coins of gold, silver, and copper, of the following denominations, values and descriptions, viz., EAGLES -- each to be of the value of ten dollars or units, and to contain two hundred and forty-seven grains and four eights of a grain of pure, or two hundred and seventy grains of standard gold. HALF EAGLES -- each to be of the value of five dollars, and to contain one hundred and twenty-three grains and six eights of a grain of pure, or one hundred and thirty five grains of standard gold. QUARTER EAGLES -- each of be of the value of two dollars and a half dollar, and to contain sixty-one grains and seven eights of a grain of pure, or sixtyseven grains and four eights of a grain of standard gold. DOLLARS or UNITS -- each to be of the value of a Spanish milled dollar as the same is now current, and to contain three hundred and seventy one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver. HALF DOLLARS -- each to be of half the value of the dollar or unit, and to contain one hundred and eighty-five grains and ten sixteenth parts of a grain of pure, or two hundred and eight grains of standard silver. QUARTER DOLLAR -- each to be of one fourth the value of the dollar or unit, and to contain ninety-two grains and thirteen sixteenth parts of a grain of pure, or one hundred and four grains of standard silver. DISMES -- each to be of the value of one tenth of a dollar or unit, and to contain thirty-seven grains and two sixteenth parts of a grain of pure, or forty-one grains and two sixteenth parts of a grain of standard silver. HALF DISMES -- each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine sixteenth parts of a grain of pure, or twenty grains and four fifth parts of a grain of standard silver. CENTS each to be of the value of the one hundredth part of a dollar, and to contain eleven penny-weights of copper. HALF CENTS -- each to be of the value of half a cent, and to contain five penny-weights and a half penny-weight of copper. They now laminate metals between two pieces of plastic to create smaller value cards. Those coins get heavy in the pocket, and a tiny chunk of gold sandwiched in a card may be more convenient for everyday use. Gold and Silver are in the Constitution, but copper was added by legislation. SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death. Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
Basically, yes. What do you think we're talking about, when the financial implosion really hits hard? What do you think is going to happen, when the rest of the world eventually drops the dollar as the reserve currency...? Oh, BTW, your social-security checks may increase a trivial amount... you'll get your checks (for a while), but the problem is that the rocketing prices mean the checks won't be worth anything. It's happened many times before, in history... it's gonna' happen again.
The two sides in America are people who work for a living versus people who vote for their living.
Where do you shop? What do you think is going to happen, when the rest of the world eventually drops the dollar as the reserve currency...? What will take its place? Eventually the dollar may loose it's reserve currency role, but that happening in the near future is pretty unlikely. The British pound was the reserve currency before the dollar and still life goes on for the Brits. Oh, BTW, your social-security checks may increase a trivial amount... you'll get your checks (for a while), but the problem is that the rocketing prices mean the checks won't be worth anything. Are you then recommending I buy gold? I have been poor in the past and survived. I much prefer having money, it's a lot more fun; however having been there, done that, and come out the other end intact, the prospect of being poor again does not terrify me. That, my friend, is freedom.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
That was before capitalism with it's constant need for inflation was allowed to be the basis of our economy.
Irrelevant. The difference is that the dollar replaced the pound. When the Brazilian peso collapsed in 2001, there was the dollar. Same with the (Soviet) ruble collapsed, the dollar was the black-market medium of exchange. There isn't anything to replace the dollar- at this particular time. And that's why people are buying precious metals. I read an article where one gold dealer on EBay was saying his gold sales have increased six-fold, in the last month... People are starting to understand that we're in a serious situation, and the government will not save us. On the contrary, the government is why we're here. My thoughts on this subject are well-documented, on this forum. That, loonymom, is an excuse, an explanation for your normalcy bias, which has no room for what's coming.
The two sides in America are people who work for a living versus people who vote for their living.
So the gold "coin" that you bought - with dollars - will be worth exactly WHAT when the dollar collapses into oblivion? One whole chicken and a lb of 85% hamburger meat?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
People aren't all buying for the same reason. How much gold do you think people would be buying if no one was selling?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
Right-O
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
It'll be worth exactly what he can get for it.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
One whole chicken and a lb of 85% hamburger meat? I got a call from a miner today whom I've bought from in the past. He said I can have all the oat meal size or smaller gold I want for 1350 an ounce 90-95% pure. And that this is the first year he hasn't been able to sell all he has mined for spot or better. His average price this summer has been 1300/ounce unless it's jewelry or collector quality.
True. There is a small minority that believe gold's in a bubble, and selling. Others are only selling at a price signficantly higher than spot, thinking that that'll bring the profit margin they're expecting. For myself, I've had a very hard time finding anyone willing to sell silver rounds. Those that are available, are looking for a premium above spot, that is too much for my taste... so I keep my eyes open, and wait.
The two sides in America are people who work for a living versus people who vote for their living.
That's interesting. I'll have to ask a smelter I know what's up with that.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
What about them? They are COMMODITIES. AND ALL PM based monetary systems ever used in human history had a scale of relative metals for lower values used in everyday commerce. We have only been doing this since about 4000BC. This is a new concept to you? So .... DUH. But that isn't what I was/am talking about. I'm talking about inflating the price of commodities giving people no place safe to put their money driving prices up. Then when there is no economic activity for the industrials, the prices then WILL fall. THIS is what I'm talking about. The THEFT of the people's wealth by the manipulation of metals prices. I'd say "buying" anything REAL with phony paper fiat money is a manipulation of it's price. I'm funny that way. Look at the net price change in the price of gold in the last couple of days. BUT .... Who ya gonna call? We're still buying the dips. Do you see the printing presses stopping? We don't. Do as YOU will of course and good luck to you. Just remember, GOLD has never been, and will NEVER ever be worth NOTHING. NOT owning some gold means that you trust the gooberment. Do you trust the gooberment? I didn't think so.
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
Honest to GOD you are fence post stooooooopid. There are these people who will ALWAYS be happy to sell GOLD fool. They are called MINERS idiot. You see fool, even MINERS can't EAT GOLD. The amount of GOLD in the world is UNKNOWN and it ALOT of it remains IN THE FIELD. FOOL. And FOOL, everyone buys GOLD for the same reasons, the same way that everyone that buys automobiles has the same reasons. FOOL. You and all libTURDS should certainly NOT buy GOLD or any other PMs. YOU libTURD SCUM should take everything and buy long term gooberment BONDS. After all, YOU SCUM trust YOUR gooberment, don't you? Remember libTURD SCUM, buy long term gooberment bonds; avoid GOLD and the entire PM suite.
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
LMAO.... Damn, you're on a roll today........ I'm gonna' send you a bill for the cleaning of my keyboard... :-P
The two sides in America are people who work for a living versus people who vote for their living.
LOL! No problem, if you can wait ten years I'll pay you off with a $10000 gooberment bond. It might still be worth a cup of coffee by then? These libTURDS are so F ing STOOOOPID! They can SEE what's happening, and yet they whine and scrape at the feral gooberment's whim. libTURDS should literally put their money where their big fat mouths are So ALL libTURDS ought to go long in the Dollar, and buy long term gooberment bonds. NEVER HAPPEN. "libTURD thy name is HYPOCRITE." ;^)
Spoiled, stupid and ignorant, brain dead phuckwads, libTURD fools, tools, and idiots, are the real sickness; the messiah "king" obammy and his regime are only the symptoms.
#2. To: Brian S (#0)
"This is a raging bull market," said Ralph Preston, analyst with Heritage West Financial.
#3. To: Capitalist Eric (#2)
The fiat-money house of cards is collapsing. Better to put your money in something that they can't print into nothingness.
#4. To: lucysmom (#3)
(Edited)
Gold was $875 an ounce in 1980; that would translate to $2,400 an ounce today.
#5. To: lucysmom, Capitalist Eric (#3)
Gold was $875 an ounce in 1980; that would translate to $2,400 an ounce today.
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#6. To: hondo68 (#5)
So they should print more money until the dollar goes down to $2,400 for an OZ of gold?
#7. To: lucysmom (#6)
No, that's not the point.
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#8. To: hondo68 (#7)
#9. To: Mad Dog (#1)
The FARO RESERVE BANK!!! 
#10. To: lucysmom (#3)
Gold was $875 an ounce in 1980; that would translate to $2,400 an ounce today.
#11. To: Capitalist Eric (#10)
Actual inflation over that same time-frame was ~8%. Since 1.08^32=11.9564, that means that gold should be ~12 times the 1980 price, or roughly $7412.96636/oz.
#12. To: Coral Snake (#9)
you cant purchase abything for less than 192 dollars with the smallest practical gold coins (1/10 and 1/16 ounce) these days. You still need currency for handling purchases between 25 cents and 192 dollars. You still beed silver and copper as part of any honest currency system based on metals.
April 2, 1792 : The US Coinage Act
When are they hanging Turbo-Tax Timmy? Firing squad?
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#13. To: lucysmom (#11)
So then you're paying ten bucks a pound for hamburger and over four dollars a pound for a whole chicken (not organic free range)?
#14. To: Capitalist Eric (#13)
Basically, yes.
#15. To: hondo68 (#12)
April 2, 1792 : The US Coinage Act
#16. To: lucysmom (#14)
Where do you shop?
What will take its place? Eventually the dollar may loose it's reserve currency role, but that happening in the near future is pretty unlikely. The British pound was the reserve currency before the dollar and still life goes on for the Brits.
Are you then recommending I buy gold?
I have been poor in the past and survived. I much prefer having money, it's a lot more fun; however having been there, done that, and come out the other end intact, the prospect of being poor again does not terrify me. That, my friend, is freedom.
#17. To: Capitalist Eric (#16)
(Edited)
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#18. To: Capitalist Eric (#16)
There isn't anything to replace the dollar- at this particular time. And that's why people are buying precious metals. I read an article where one gold dealer on EBay was saying his gold sales have increased six-fold, in the last month...
#19. To: Capitalist Eric (#16)
That, loonymom, is an excuse, an explanation for your normalcy bias, which has no room for what's coming.
#20. To: war (#17)
So the gold "coin" that you bought - with dollars - will be worth exactly WHAT when the dollar collapses into oblivion?
#21. To: war (#17)
So the gold "coin" that you bought - with dollars - will be worth exactly WHAT when the dollar collapses into oblivion?
#22. To: lucysmom (#18)
People aren't all buying for the same reason. How much gold do you think people would be buying if no one was selling?
#23. To: mininggold (#21)
His average price this summer has been 1300/ounce unless it's jewelry or collector quality.
#24. To: Coral Snake (#9)
What about silver and copper.
#25. To: lucysmom, Capitalist Eric (#18)
People aren't all buying for the same reason. How much gold do you think people would be buying if no one was selling?
#26. To: Mad Dog (#25)
Honest to GOD you are fence post stooooooopid.
#27. To: Capitalist Eric (#26)
I'm gonna' send you a bill for the cleaning of my keyboard... :-P
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