Posted on 01/20/2009 7:37:30 AM PST by STD
Before the trading day began Tuesday, spot prices for gold were trending sharply higher. By 10AM gold prices has reached $855 an ounce, up $25 dollars in two hours. Wall Street has already factored in the potential damage an Obama Presidency would have on the stock market. Wall Steet is always prepared for the movements in the price of stocks, bonds and commodities.
Traders did not take into consideration how the Average Joe across the globe would respond to plans for a whole new bundle of worthless paperhanging of the US Dollar.
Gold prices had been forecast to drop down to as low as $775 dollars as recently as last week.
Apparently, the rules of this new market is joined to the average consumer. Many investors had planned to sell off as much as 500% in capital gains they have enjoyed once the new president has settled into the Oval Office and life returned to normal in the USA. The American people have apparently decided to hang onto their investments in gold and in many cases even increase their investment in gold.
Sort of. It was an old 401k that I rolled into an IRA when I left that job.
I'd guess if that's your situation too, you could to that. I just have it all in an Ameritrade account. I had it spread around a little in different stocks, but with Obama coming in, I didn't feel good about Halliburton, Exxon Mobile, Northrop etc.
I just don't want to commit to anything at the moment, until I get a better feel of what's going to happen and figured gold could be a good hedge.
Bush allowed his administration to be so villified that the a new term, BDS (Bush Derangement Syndrome) entered the lexicon. By being such a poor commicator, he allowed the leftists to destroy him. By not choosing a VP that would/could run for election on his/her own be screwed the Republican party. With so many people hating this man and his administration, they elected a marxist.
Which brings us to the net result of all of this: President Obama. That is Bush’s legacy - President Obama.
And it will go down Thursday..
Thanks!!!!!
Will do! Thanks for the tip!
Rule of thumb: when the price of an ounce of gold exceeds the Dow Jones Industrial Average, start selling the gold.
I don't think I understand what you're telling me. Gold is $858 or so an ounce right now, but the DJIA is 8149. Do you mean gold ounce X 10? if that's greater than the DJIA, then I should sell?
I'm not understanding something here.
The last 10-15 years have seen a series of bubbles in various sectors. First it was growth stocks, then value stocks, then residential real estate, then oil, then commercial real estate. Are commodities the next "bubble" we're facing?
I can't remember whether gold spiked in anticipation of, or in response to, Carter's inflation.
Anyone remember?
Lead trumps gold every time. Stock up. No I mean stock up more than you already have. I’m going to do that now...
I've read all the posts about this being a phoney PM market or bubble. I just can't see why US paper money has much value at all. If the US Dollar no longer is the standard of international trade we are screwed.
You got it. When gold has risen to, say $3000, and the Dow has dropped to, say $3000, then the paths will have crossed, and you may consider steeling if there aren’t any obvious signs to the contrary (like a crater in Manhattan, or whatever.)
I’ve been hearing for months that you’ll know when to get back in the stock market when gold and the DJIA are both at 5,000.
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