HONG KONG GOLD UP $8 AND SILVER UP $.50

Forex ^ | 16 April 8:04 p.m. CST | Forex Staff

[shrinkermd]

Gold and silver on a tear overseas. Also, oil seems to be breaking $70 a barrel. Anticipating problems tomorrow or just commodities on an upswing?

[thoughtomator]

Interesting, the upswing corresponds with the opening of the Hong Kong exchange. Wonder what the Chicoms are up to?

[Old_Mil]

Gold's historic high was set on January 21st, 1980 at $850 an ounce. I fully expect to see it reach, and surpass those levels.

[balrog666]

You mean the dollar is still dropping?

[djf]

The 850 number is not even inflation adjusted. You know, when people say "Gas cost more than it ever did", you always get somebody piping in talking about inflation adjusted gas prices were higher in 80 than now.

current gold spot up $9.20, silver up .59

[BlackVeil]

I agree with you, and I believe that if you look at it in terms of commodity cycles and currency inflation, gold is still undervalued at $600.

[TEEHEE]

Paradigm shift continuing merrily along.

[BlackVeil]

All I can say, is I ask myself the same questions as you. In Australia - heaps of rumours about what is driving oil and some commodities up.

Also - uranium and copper are rising extremely fast. There is a market for them which seems very high and ever rising.

I do fear this is a sign of military action, but perhaps stocks are low (copper and uranium are used in shells and bombs, millions of which have been fired in recent years.)

[Rockitz]

Gold's historic high was set on January 21st, 1980 at $850 an ounce. I fully expect to see it reach, and surpass those levels.

As do I.

[djf]

Yup. All the paper currencies in the world are hell bent on competitively devaluing themselves so that their export markets don't go down the toilet.

So it's a commodities bull. Big time.

[neutrino]

This means we're doomed, yes?

Only if you shorted contracts of gold. Then, you certainly are!

[TEEHEE]

So it's a commodities bull. Big time.

And...if these economic cycles run approximately 20yrs, and we're only 5yrs into the commodity bull, we have a looong way to go before gold/silver/copper/oil run out of steam. Gonna a very different world at the end of this bull ride.

[BobS]

I bought a certain amount of gold coins when it was $300/oz. I like them. I will sell @ $1000/oz.

[djf]

Problem is the shorts are so exposed, they're gonna get killed.

I wouldn't walk on the sidewalk near any highrises in the financial districts if I were you...

[AdamSelene235]

Remember the large quantities of stock which were bought directly before September 11th? All the changes?

Unlike 911, its fairly common knowledge the FedGov intends to destroy the dollar.

[BobS]

I want a 1910 Russian Ruble. As an equal trade for California gold.

[BenLurkin]

And very fancy 3D paper!

[cpdiii]

Gold's historic high was set on January 21st, 1980 at $850 an ounce. I fully expect to see it reach, and surpass those levels.

If you factor in inflation when and if gold reaches 850 dollars it is still about half of what it was in 1980.

[AdamSelene235]

Discontinuance of M3

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.

[TEEHEE]

M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.

"The Board of Governors of the Federal Reserve asks that you pay no attention to the fact that gold has gone straight up since the M3 announcement. Gold is barbarous and stuff. It's not relevant. Really. Go Bucky."

[BohDaThone]

ok -- I will pipe in and note that inflation since 1/21/80 has been about 2.3-2.5 times, depending on what index you use, so that $850 then = $1900-$2200 now -- so we are at or under 1/3 of the 1980 high!