Skip to comments.Gold Flies to Record, Investors Seek Safety (Smashes past $1240/ounce. Is it telling us something?)
Posted on 05/12/2010 7:32:32 AM PDT by SeekAndFind
Gold surged to a record high on Wednesday as investors piled in, seeking safety from turmoil in government bond markets and the risks of Greece's debt crisis spreading to other countries.
Spot gold hit $1,243.55 an ounce, a gain of nearly 20 percent since early February. It was bid at $1,240.75 an ounce at 1006 GMT (6:04 a.m. EDT) from $1,232.05 late in New York on Tuesday. U.S. gold futures hit a record $1,244.80 an ounce.
Investor buying this week was triggered by doubts that a $1 trillion rescue package to contain an escalating debt crisis in Europe would be enough to cut the chances of sovereign default in the euro zone.
"Safe-haven flows are going to continue for the time being, people are digesting news about the package," said Dan Smith, analyst at Standard Chartered. "This is something of a wake-up call in terms of how safe sovereign debt really is."
Investors and many traders think the scale of Greece's fiscal problems could make it tempting for the country to default, despite the package, which could start a run on the debt of countries such as Spain, Portugal and Italy.
That was partly offset by news that European central banks were buying Portuguese, Irish and Greek government bonds, but investors and analysts are not convinced.
"Gold is benefiting as euro zone government bonds lose some of their safe-haven appeal. With governments tightening budgets, it will take the pressure off central banks to hike," said David Thurtell, analyst at Citi.
(Excerpt) Read more at abcnews.go.com ...
Well this is cheery news.
Well, since we invested in bullion, American Eagles and Maple Leafs fifteen years ago...yes this is GREAT news!
Is it telling us something?
Well, I don’t know about you, but the little voices are telling me to add 100 more shares of DZZ to my portfolio.
Remember, gold/silver isn’t an investment,
it’s wealth preservation.
Nope ... It's just an amazing coincidence.
when will your goldline commercial be airing? ; )
Maybe it’s telling us it’s halfway home.
2. The bail out of the Euro is merely printing money backed by no productivity and throwing it into a forever widening and deepening black hole of socialism from which there is NO escape.
3. Obama's primary mission is to create the largest welfare and entitlement state in the history of the world. He intends to accomplish this through the total destruction of capitalism, the total destruction of freedom and liberty, and the subservience to his government of the individual. To these ends he will spend and TAX us into oblivion to a point beyond which there is NO recovery. By all indications, he has already accomplished this goal.
See. This is why I, and Rush, hoped he fail.
Really? How much have retail prices gone up in the last 15 years? Figure that and then get back to me on how much you've 'made'.
The last time Gold soared this quickly was during the Stagflation years of Jimmy Carter.
Those were the years of double digit inflation and unemployment, double digit interest rates AND high oil prices ( I remember the gas lines after price control was instituted ).
That’s as far back as I can remember when I started to be aware of financial matters.
Today is a little different.
* OFFICIAL ( note the caps ) inflation is tame
* Unemployment is high like in Carter’s time
* Interest rates are rock bottom unlike Carter’s time
* Oil prices are high but we don’t have price control (yet) and long gas lines.
Wonder how long should one let his profits on gold run before taking a profit, taking some money off the table?
......The last time Gold soared this quickly was during the Stagflation years of Jimmy Carter......
The soaring lasted only a matter of days. The current rise is already many orders of magnitude greater in terms of time in process. The reference is historically flawed and irrelevant
“1. The stock market bears NO relationship to actual economic health. It is speculative high risk gambling based on nothing more than individual and corporate greed. Nothing wrong with that but you have to realize who and what you are dealing in and with.”
Recall that the German stock market at the start of 1944 was going UP.
(A year later, how did that bet work out?)
It depends on your purpose.
If you are a speculator, I’d recommend cashing out half at the time you have doubled and let all the profits ride.
If you are hedging for TETOWAKI, then you hold and take physical possesion.
Hitler had a ‘Plunge Protection Team’?
Gold can crash when the market crashes. Ever try eating gold? This is not a good security blanket if there is no market to turn into cash to buy bread. Fear it may be a good feel good. But it is probably better than anything else, just don’t think that will alleviate hunger.
I took some profits in EGO today........
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