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Gold Flies to Record, Investors Seek Safety (Smashes past $1240/ounce. Is it telling us something?)
ABC NEWS ^ | 05/12/2010 | Pratima Desai

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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: currency; gold; goldbugping; inflation; prices

1 posted on 05/12/2010 7:32:32 AM PDT by SeekAndFind
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To: Travis McGee; blam

Well this is cheery news.


2 posted on 05/12/2010 7:34:48 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker

Well, since we invested in bullion, American Eagles and Maple Leafs fifteen years ago...yes this is GREAT news!


3 posted on 05/12/2010 7:37:48 AM PDT by alice_in_bubbaland (Professional Politicians are a Threat to the Republic! Remove them on 11-3-10!)
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To: SeekAndFind

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.


4 posted on 05/12/2010 7:39:23 AM PDT by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: SeekAndFind

Remember, gold/silver isn’t an investment,
it’s wealth preservation.


5 posted on 05/12/2010 7:39:45 AM PDT by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: SeekAndFind; blam; xsmommy
Time for another hit from the coffee mug
6 posted on 05/12/2010 7:41:30 AM PDT by NeoCaveman (we now live in a post-Obamapacolyptic world)
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To: SeekAndFind
Gold Smashes past $1240/ounce. Is it telling us something?

Nope ... It's just an amazing coincidence.

7 posted on 05/12/2010 7:41:55 AM PDT by Zakeet (The Wee Wee -- rapidly moving America from WTF to SNAFU to FUBAR)
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To: NeoCaveman

when will your goldline commercial be airing? ; )


8 posted on 05/12/2010 7:42:29 AM PDT by xsmommy
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To: Zakeet

Maybe it’s telling us it’s halfway home.


9 posted on 05/12/2010 7:42:54 AM PDT by GOPJ ("Draw Mohammad Day" - - May 20, 2010 - Draw for freedom - draw for your children's freedom.)
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To: SeekAndFind
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.

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.

10 posted on 05/12/2010 7:45:22 AM PDT by Doc Savage (SOBAMP!)
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To: Doc Savage
Obama's primary mission is to create the largest welfare and entitlement state in the history of the world.

See. This is why I, and Rush, hoped he fail.

11 posted on 05/12/2010 7:47:24 AM PDT by NeoCaveman (we now live in a post-Obamapacolyptic world)
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To: alice_in_bubbaland
Well, since we invested in bullion, American Eagles and Maple Leafs fifteen years ago...yes this is GREAT news!

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'.

12 posted on 05/12/2010 7:49:45 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Doc Savage

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.


13 posted on 05/12/2010 7:50:52 AM PDT by SeekAndFind
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To: SeekAndFind

Wonder how long should one let his profits on gold run before taking a profit, taking some money off the table?


14 posted on 05/12/2010 7:53:36 AM PDT by bert (K.E. N.P. +12 . Ostracize Democrats. There can be no Democrat friends.)
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To: SeekAndFind

......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


15 posted on 05/12/2010 7:57:25 AM PDT by bert (K.E. N.P. +12 . Ostracize Democrats. There can be no Democrat friends.)
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To: bert

“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?)


16 posted on 05/12/2010 8:00:00 AM PDT by CondorFlight (I)
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To: bert

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.


17 posted on 05/12/2010 8:00:31 AM PDT by NeoCaveman (we now live in a post-Obamapacolyptic world)
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To: CondorFlight

Hitler had a ‘Plunge Protection Team’?


18 posted on 05/12/2010 8:00:41 AM PDT by dfwgator
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To: SeekAndFind

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.


19 posted on 05/12/2010 8:01:03 AM PDT by Logical me
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To: bert

I took some profits in EGO today........


20 posted on 05/12/2010 8:02:38 AM PDT by Osage Orange (Si vis pacem, para bellum)
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To: Logical me
Ever try eating gold?

Ever try eating a ten-spot?

This is not a good security blanket if there is no market to turn into cash to buy bread.

And if there's no wheat to grind all those dollars bills laying around will make a darned sturdy wallpaper.

"Government is the only entity that can take a valuable commodity like paper, slap some ink on it, and make it worthless." Ludwig Von Mises.

21 posted on 05/12/2010 8:14:30 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: MrB

Good thing I have 8 oz of the stuff....


22 posted on 05/12/2010 8:46:38 AM PDT by refermech
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To: SeekAndFind

In my opinion any futures market is like a huge roulette table, IOW take your $$ and get off.


23 posted on 05/12/2010 8:50:27 AM PDT by valkyry1
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To: valkyry1
IOW take your $$ and get off.

Ahh but which currency to go to ? That is the BIG question.
24 posted on 05/12/2010 9:00:09 AM PDT by SeekAndFind
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To: SeekAndFind

A big deal was made about the stock market going up 4% on Monday. It wasn’t that stocks were going up — it was that currencies were going down, due to the $1T Euro-TARP program.


25 posted on 05/12/2010 9:06:46 AM PDT by AZLiberty (Yes, Mr. Lennon, I do want a revolution.)
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To: Logical me

I heard Dave Ramsey say something similar.


26 posted on 05/12/2010 9:35:39 AM PDT by CommieCutter (Obamanomics :Privatize Gains, Socialize Losses.)
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To: All
Hopefully not off topic but I've been wanting to know this for some time.

What are the stock market symbols for gold, silver and oil?

I keep hearing about the price fluctuations and see charts of them, but cannot find any symbol for any of them on the market exchange listings.

Thanks for the information in advance.

27 posted on 05/12/2010 10:12:53 AM PDT by egfowler3 (No Vacancy)
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To: Lurker

Ever try eating gold?
Ever try eating a ten-spot?

This is not a good security blanket if there is no market to turn into cash to buy bread.

xxxxxxxxxxxxxx

With my 45 pressed against the forehead I take your share? yes NO? will bethe rule of the day.


28 posted on 05/12/2010 11:30:41 AM PDT by CHICAGOFARMER ( “IThf you're not ready to die for it, put the word ''freedom'' out of your vocabulary.” – Malcol)
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To: CHICAGOFARMER
With my 45 pressed against the forehead I take your share? yes NO? will bethe rule of the day.

Actually discussed this with my neighbor (2 doors down and a farmer). These are the first people we will take out.
29 posted on 05/12/2010 11:34:52 AM PDT by PA Engineer (Liberate America from the occupation media.)
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To: PA Engineer

With my 45 pressed against the forehead I take your share? yes NO? will bethe rule of the day.

Actually discussed this with my neighbor (2 doors down and a farmer). These are the first people we will take out.

xxxxxxxxxxxxxxxx

bless be the Lord of trained my arms for battle. Psalms 144.1

Train like you fight, fight like you train


30 posted on 05/12/2010 12:13:33 PM PDT by CHICAGOFARMER ( “If you're not ready to die for it, put the word ''freedom'' out of your vocabulary.” – Malcolm)
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To: egfowler3

For ETFs, which are not exactly the same price as the commodities themselves, try GLD, SLV, and USO. Natural gas is UNG or UNL.

Commodities symbols themselves changes every month.

Try http://www.kitco.com for good graphs of gold and silver.


31 posted on 05/13/2010 5:47:28 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: All; PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; OneLoyalAmerican; ...
Goldbug ping

A note that 8:15 ET is when NY gold trading begins. A sharp move there at the open often indicates the direction for the entire day -- and it looks like it's up a smart eight bucks in a half hour:

A better view from the same page:

Similarly, silver is up 20c, that's more than a percent.

Mail me to get on or off the Free Republic Goldbug Ping List.

32 posted on 05/13/2010 5:52:26 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: jiggyboy
JP Morgan: Gold Could Now Face 'Unlimited' Demand


33 posted on 05/13/2010 5:55:08 AM PDT by blam
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To: SeekAndFind
The Euro Is Tanking Hard
34 posted on 05/13/2010 6:00:28 AM PDT by blam
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To: blam

RE: The EURO is Tanking

Well,what can I say ? The Euro has fallen back to $1.25. Why did I use the word “back” ?

Well because when the Euro was first introduced it was pegged at $1.25/Euro. It is only returning to its original value at the time of its birth.

This is not to say the USD is strong. That is why a good measure of a currency’s strength is its value relative to Gold (or Silver ).


35 posted on 05/13/2010 6:39:43 AM PDT by SeekAndFind
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