Posted on 11/08/2010 9:01:53 AM PST by SeekAndFind
Gold hit an all-time record while silver and oil both touched multi-year highs on Monday, supported by the Federal Reserve's move to spur the U.S. economy and by growing worries about inflation.
A rally in the dollar trimmed early gains, but commodities still found support across the board as investors considered the outlook for the currency as the United States pumps $600 billion into its economy and money markets.
"Investors are looking for real assets, and almost all commodities are benefiting from that as a class," said Carsten Fritsch, a commodities analyst at Commerzbank. "Chinese growth, inflation and the declining dollar are all supportive."
Gold, a traditional hedge against inflation, hit a record of $1,398.35 an ounce before slipping back to around $1,391.00 by 1130 GMT. Silver tracked gold to strike a fresh 30-year peak at $26.98 an ounce before easing back to around $26.70.
Gold found unexpected support from World Bank president Robert Zoellick, who suggested in the Financial Times that leading economies should consider readopting a modified gold standard to guide currency movements.
"I think for today, we may actually see gold hit above $1,400," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore. "This is the level that I think a lot of investors should be watching to see if some shorter-term players may choose to take profits."
U.S. crude oil for December hit 25-month highs at $87.49 per barrel before slipping back to around $86.45, down 40 cents, at 1130 GMT as the dollar rallied.
(Excerpt) Read more at money.canoe.ca ...
ADD 56 cents to a gallon of gas ....in a few months
“Inflation?? What Inflation?? Where’s the Inflation?? I don’t see an Inflation - do you see an Inflation?? (What’s an Inflation??)” - Baby Ducklings
/sarc
As dollar bills lose their purchasing power, more of them are needed to buy the same amount as before. This means that prices rise, and along with prices, the numbers by which economic statistics are reported, leading media types and other intellectually challenged individuals to claim that the economy is improving.
I wouldn’t expect to see any inflation at all, especially since FOOD AND ENERGY are NO LONGER INCLUDED in the CPI
” FOOD AND ENERGY are NO LONGER INCLUDED in the CPI “
For years, the CPI (and other Gummint-issued indicators) have reflected only what the Government wants you to - ignoring the evidence of your lying eyes - believe...
Today it is at $27.37 an ounce. Much of the increase happened before the Fed's announcement of quantitative easing.
The economy is collapsing right under our noses.
Let’s make that $27.52, 20 minutes later.
Yeah, according to the government $812.04 cents now buys what $100. bought in 1954 when I was ten years old. Now it should follow that since my father the carpenter was paid about $100. every TWO weeks back then and somehow supported all of us then a man should be able to support a wife and family now if he is paid $812.04 every two weeks, right? Truth is it would take a financial genius to support them on $812.04 for ONE week right here in the same area. The CPI figures are cooked to pieces. Back then our electric bill never went over eight dollars a month, usually less than seven. You can’t even have a meter for that now! If you use no electricity at all the minimum monthly bill is double what we used to pay. I am sixty six years old and I can easily carry a hundred dollars worth of groceries into the house unassisted in one trip. In 1954 you couldn’t put a hundred dollars worth in a pickup truck bed unless you had wooden side extensions. It’s all a lot of bullcrap. We used to grow cantaloupes and sell them wholesale by the pickup truck load for six or seven cents each, top price we ever got was eleven cents for cantaloupes bigger than some supermarket watermelons are now. That would barely pay for the gas to haul them now. If our government tells the truth about anything it is purely by accident.
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