Skip to comments.PRECIOUS METALS: Gold Up In Asia; Silver Nears 31-Year High
Posted on 03/01/2011 5:13:29 AM PST by Jet Jaguar
Gold was up in Asia Tuesday while silver pushed above the $34 dollar level and is getting close to the 31-year high of $34.33 a troy ounce it hit on Feb. 22.
After a volatile session Monday in which precious metals were supported by the ongoing political unrest in the Middle East, the focus is switching back to monetary policy concerns and the U.S. dollar, with Federal Reserve Chairman Ben Bernanke due to start two days of testimony to the U.S. Congress later Tuesday.
"The U.S. is unlikely to exit quantitative easing soon. Monetary policy will be loose compared to other central banks (like the European Central Bank) who may turn hawkish to combat inflation. This coupled with high oil prices could be negative on the dollar and positive for gold," Phillip Futures said in a note.
At 0635 GMT, spot gold was at $1,415 a troy ounce, up $3.80 since Monday's New York close, with Tocom February 2012 gold at Y3,748 a gram, up Y25.
Spot silver was up 12 cents at $34.10/oz. Technical analysts are expecting new highs soon after a rally of 20% in February due to a combination of short covering, Middle East-related safe-haven buying, and industrial demand.
Spot platinum was up $12 at $1805/oz, clawing back yesterday's losses, while spot palladium was down $1 at $795/oz after China's purchasing managers index data for February showed a slowdown in manufacturing output growth.
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Making me glad that I swapped out some of those flimsy paper things for shiny stuff a couple years ago.
I think silver can go to 40+....it’s that kind of economy right now.
Inflation? What inflation?
Gold is at its all-time high this morning. On Nov 9, 2010 gold set a high of $1424.
If gold closes above $1424, we should see gold hit $1500 soon thereafter.
Silver is also strong this morning.
I didn’t realize $ 1424 was the all time high. For some odd reason, I thought it was almost $ 2,000.
Bad memory must be catching up to me.
I view it as devaluation. The US$ is steadily declining in value relative to real stuff.
Thanks for the ping, Jag.
How’d you like to have found this treasure last week?
You’ve probably seen $2000/oz so many times the number has imprinted itself in your mind. It, or numbers near it, are the inflation-adjusted high of the 1979 peak ($850) adjusted to current dollars. Using the government’s own (understated) inflation numbers, no less! If you use more realistic inflation numbers, you get more like $5000-$6000/oz. This, to some of us, makes it still a buy here at $1400.
I think you’re both right.
Least I knew I got that number from someplace! (see, there is always hope...lol)
In the early ‘50s you could buy a gallon of gas for two silver dimes. Today you can still buy a gallon of gas for two silver dimes and get back change. If you take the change in copper pennies, you really make out.
With silver at $34.00 today am I correct in saying that one silver dime is worth $2.50?
That’s a great idea, but copper pennies are getting rare. I think I’ll ask for the change in nickels, which are also worth more than their face value. They have more copper in them than today’s pennies do, being made of 75% copper, 25% nickel.
In the past, most “junk silver” coins on eBay often sell between a +/- 5% spread of the melt value. For example, if you have a silver coin that has a $1.00 melt value, you should be able to find someone who’s willing to buy/sell it between $0.95 - $1.05. However, the recent spike in the silver price has caused premiums to fluctuate wildly.
If you’re planning to buy/sell 1 Roosevelt dime(s) when silver is priced at $34.31 / ounce, the final total may fall between $2.36 - $2.61 on eBay.
In 1930, one could buy a brand new car for about 15 oz. of gold.
Today, one can still buy a brand new car for about 15 oz. of gold.
Copper pennies are about 20% of a $50.00 random “bag”, actually box of rolls from a bank. Wheat pennies are really getting hard to find.
That’s the “first level” of precious metals one should buy.
1) Preconfigured brass & lead - personal, family, and property defense
2) Silver - for trading
3) Gold - wealth preservation
That’s really close. As another poster said, the coinflation site is very handy.
Notice that the 90% silver coins, be they dimes, quarters, halves or dollars,
all are worth around 25 (24.58) times “face”.
If the SHTF tomorrow, remember what your $2.50 would buy today, and that’s what you should be able to buy with a silver dime post-SHTF.
Does anyone expect silver to test the $30 floor again anytime this year? If no, what’s a reasonable floor to expect on a pullback this year.
I simply had not given thought to the value of one silver dime today.
It puts into perspective how damaging the Federal Reserve and or Federal Government have been.
If a person hoarded a “paper” dollar bill in 1960, that person would have $1.00 today.
If a person hoarded ten silver dimes in 1960, that person would have $25.00 today.
And Obama is submitting budgets that require even more printing of paper dollars.
We are so screwed!!!!
From Obama’s election in Nov 2008 until today silver prices are up 245%, gold prices are up 95%,and oil prices are up 50%.
How is that Hope and “lack of” Change in your pockets feeling to those who voted for the ObaMao?
And Obama has the audacity to tell the Senior Citizens on Social Security there has been zero inflation and as a result the Senior Citizens are not going to get a boost in their Social Security check.
Based on your numbers, I wonder which is the better deal. We could say pennies are, then, on average 20% copper and 80% zinc, while nickels are 75% Cu and 25% Ni. Given the weights of a dollar’s worth of pennies and of nickels, we could calculate based on the metals prices what the relative values actually are. One thing I know right now: both pennies and nickels are worth more in metals content than in face value. And given the actions of our sage leaders in Washington, this is likely to continue. At least with nickels, you don’t have to sort them ... unless you’re looking for silver wartime nickels, which the tarnish however makes most of them really easy to spot.
One correction—oil prices on Nov. 21, 2008 were about $ 49.00/bbl.
So they have gone up 100% since then, not 50%.
Higher oil prices will only stall the economy, if not stop it in its tracks.
Think Zero cares?
BTW—in December 2008, oil went down to a little over $ 30.00/bbl. So, the price as gone up over 200% if you use that as the starting point.
Oh, and the Dems were in power all that time except for the last two months.
BE VERY CAREFUL!! It is a slippery slope you are attempting to explore!!! It starts with just real copper pennies, then you save ALL nickles, then you read about a few State quarters that are rare, like Delaware, Pennsylvania, and Georgia,...Then you figure might as well check for mint errors.......THAT WAY LIES MADNESS.....
Everything is okay now:
I saw Wheat Pennies at my local coin shop (about a month ago) selling for $4.25 per 100 coin bag. (That's four and a half cents each)
Silver closed at $33.98/oz yesterday, making one silver dime worth $ 2.458.
It will be worth more today. See link for worth of precious metals in coinage:
Just bought a roll of Mercs for $136 (w/ ship) and don’t feel a damn bit bad about it. Mercs are my fave.
“Inflation? What inflation?”
Actually, it’s deflation. Many grocery product volumes are decreasing while the prices stay the same.
There’s a shortage of silver bullion on my area. Between 3 coin shops last Saturday there was a total of 35 ounces to be found. All of the shops said they had several hundred ounces in earlier in the day and had already sold it.
The “silver shortage” reflects a lack of small sellers, and shops unwilling to buy at actual market price. Tulving.com, and nwtmint.com have plenty at normal market rates
” 2011 Sealed Boxes Of Silver Maples For $1.99 A Coin Over Spot”
$2.00 and lower is what the small guys around here are charging over spot, and $2/under is what they buy it at, unless you have a hundred ounces or more then they cut a deal.
Bought a few eagles at $1 over spot this past weekend.
The run is on....
Looks like tulving.com has a $0.49-0.70 per ounce buy/sell spread on silver. That’s 1.5-2.0% for large quantities and low overhead, while your local shop guys have a $4 spread, which is about 12% spread (plausible, though not attractive).
These numbers have been this way for years, so saying “the run is on” is not really correct.
What you have described is inflation. It is a price increase, a hidden one, but a price increase all the same.
Er yeah. I guess the sarcasm tag got left off that one.
Local guys around here are selling at $2 over spot, unless it’s a premium coin. $1.50 over spot if you’re buying 100 or more. It’s hit or miss. If they get a boatload in the morning, it’s gone in the afternoon.
I was hoping you were trying to be funny (good one!), but in this day and age, you never know. I guess I should give your average freeper more credit too. ;^)
I have a torn $2 from 1928. Then it was worth about a tenth ounce of gold. Today it is worth $2.
Local shop said they sold 3 bags ($1000 face) this morning. Not much junk left.
And what’s their minimum? 500 ounces?
Happy I went all-in on PM’s in early 2009. Not so happy what this spells for the future of my kids and my country.