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Gold hits $700 for first time since 1980
Reuters ^

Posted on 05/09/2006 3:27:39 PM PDT by Capitalism2003

NEW YORK (Reuters) - U.S. benchmark gold futures scaled a new 25-year high at $700 an ounce on Tuesday, boosted by relentless investor buying powered by geopolitical concerns and expectations of further price gains ahead, dealers said.

By 11:30 a.m. EDT, June delivery gold on the New York Mercantile Exchange's COMEX division was up $20.10 or 2.9 percent at a session peak of $700, which marked the loftiest level for futures since September 1980.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: frnfunnymoney; gold; goldbuggers; goldbugs; keepprinting; panic; papermoney; skyisfalling
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To: oblomov

I'm not invested either way, but I don't think the commodities market is even close to a top. There have been four commodities bull markets in the last 200 years. The average lenth of each of them was 14 years. Energy and metals have been going up since 2001. We are 5 years in with several more to go. You will know when we are close to a top when most people you know think that commodities only go up, just as they thought that stocks only go up before the crash in 2000. We will have a correction, but this commodities bull will not end until we see inflation adjusted new highs.


41 posted on 05/09/2006 4:46:11 PM PDT by FightThePower!
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To: Hot Tabasco
There are a lot more people who think the gold buyers are panicking and laughing at them.

We had people here who thought that, when gold hit 400. And they thought that even more when gold hit 500. When gold hit 600 they were convinced they were the only sane ones left. Good to know they're still around.

42 posted on 05/09/2006 4:49:57 PM PDT by hinckley buzzard
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To: stop_fascism; HEY4QDEMS

re. gold & dollar relation.

Well, yes and no. The relationship is not causal, although it can be. In the case of today the simultaneous decrease in dollar exchanges and increase in gold are related only by circumstance. Besides, the dollar exchange drop is nowhere comparable to the gold/dollar increase.

Like oil, gold is up because of 1) demand in Asia; 2) insecurity in geopolitics. Were the dollar related to this, its value against other currencies would have dropped vastly more than it has. The dollar's recent drop v. the yen and the euro is more about expectation that the Fed will slow its interest increases, thereby making dollar holdings less attractive. However, as with the dollar drop of last year there's a limit. The problem is that things based in dollars are too valuable, especially US Treasuries and the U.S. stock markets. Investment in the U.S. remains the best quality investment in the world. There are higher returns elsewhere, but the U.S. stands as the global hedge.

Oil and gold prices reflect international consumption and international tensions. The dollar value is down due to the same, but the reality of U.S. economic and political strength keeps getting in the way of dollar bears who hope for a more drastic drop that would correlate to the gold/oil prices.

When investors wake up in xx months (place your bets here; I'm thinking early Autumn) and find that the world has not ended, both oil and gold will drop. The dollar probably won't change much either way.


43 posted on 05/09/2006 4:50:57 PM PDT by nicollo (All economics are politics)
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To: BeHoldAPaleHorse
Hell, it reminds me of the gold mania of 1980-81. But we're not supposed to notice that.

You mean like Gold being the lead story night after night on the evning news ?

....or do you mean like people are lining up around the block to buy/sell Silver and Gold at jewelry stores and coin shops ?

.... or do you mean Gold and the DOW are getting comparable in price ?

I don't think we have reached a mania stage yet.

44 posted on 05/09/2006 4:55:57 PM PDT by simon says what
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To: simon says what
I don't think we have reached a mania stage yet.

When talk radio commercials hype it ad nauseum, we've PASSED the mania stage.

Industry is already ramping up to dig up more gold, because at $550 an ounce digging it out of the ground is profitable. That's going to be its stabilization level.

45 posted on 05/09/2006 4:58:58 PM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: Capitalism2003

I love gooooooooooooooooooold!

46 posted on 05/09/2006 5:03:02 PM PDT by TUAN_JIM (Sic Semper Tyrannis)
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To: Capitalism2003

What is the POG in Euros?


47 posted on 05/09/2006 5:03:32 PM PDT by joesnuffy
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To: Enterprise; All

I hate to ask a dumb question, but where is the best place
to sell an American Gold Eagle, if you wanted to cash
it in for $700? I paid around $275.


48 posted on 05/09/2006 5:07:17 PM PDT by CharlotteVRWC
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To: CzarNicky
So if I bought gold in 1980 I just broke even.

Exactly. Adjusted for inflation or measured against the Dow - you lost your arse!

49 posted on 05/09/2006 5:07:42 PM PDT by Lowcountry (RIP: Peterdanbrokaw)
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To: CharlotteVRWC

Go to your local coin dealer.


50 posted on 05/09/2006 5:13:07 PM PDT by RightWhale (Off touch and out of base)
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To: BeHoldAPaleHorse
When talk radio commercials hype it ad nauseum, we've PASSED the mania stage.

WOW ! Paid radio commercials. You know I have seen a couple of TV commercials too.

Is Gold on the cover of Newsweek or Business Week ? Are people at the water cooler talking about Gold ? These are signs of a mania.... not radio commercials.

Industry is already ramping up to dig up more gold, because at $550 an ounce digging it out of the ground is profitable.

It takes on average 6-7 years to go from discovery to digging out of the ground. The industry will not be bringing large new supplies online for several more years.

51 posted on 05/09/2006 5:14:16 PM PDT by simon says what
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To: simon says what
It takes on average 6-7 years to go from discovery to digging out of the ground.

A lot of mines were simply shut down, no need for discovery. They're ramping up for 2007 delivery.

52 posted on 05/09/2006 5:17:20 PM PDT by BeHoldAPaleHorse ( ~()):~)>)
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To: CharlotteVRWC
Here's some places to start looking. But before I went on the internet, I would check with local coin and jewelry shops. As usual, when shipping coins, so some research, buyer/seller beware, and get INSURANCE!

Certified Mint

Bullion Direct Services

Buying Gold Coins

Gold Kit

Coin Gallery

53 posted on 05/09/2006 5:44:58 PM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: Capitalism2003
If the borders were enforced, gold might not be so high.
< \thread hijack>
54 posted on 05/09/2006 5:55:05 PM PDT by Recovering_Democrat ((I am SO glad to no longer be associated with the party of Dependence on Government!))
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To: simon says what

Real value is what I consider the value to be minus the effects of speculation.

I place my opinion of what the real value is at something lower than the speculators.

In my opinion, the real value represents the most likely price the commodity will settle at when balance is restored to the market through natural, free market forces. Such as when the effects of the current prices begin to affect consumption.

It is not a reference to a Marxist concept or older economic concept of real or intrinsic value. Value is ultimately decided by the consumer, and prices are set according to demand and supply concerns.

Examples of the phenomena of real, or I guess a better term might be "normal" value, is evident all around us. At the moment, the supply of money chasing the supply gold is high, but this is not a normal state. Gold is also not a static resource, and eventually conditions will change and the price of gold will drop because the conditions which led to the rise in price aren't permanent. The conditions leading to the rise in price are in my opinion unsustainable. When the buying frenzy is over, there will be a lot of people holding onto gold that won't be valued equal to the price they bought it at for a long while.

Leastwise, that's my opinion.


55 posted on 05/09/2006 8:55:49 PM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: HEY4QDEMS

Sorry, I misread your original post. I read "going down pretty good" as "going pretty good." Oops.


56 posted on 05/09/2006 9:47:19 PM PDT by stop_fascism
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To: CharlotteVRWC
One place to check out is Kitco
57 posted on 05/10/2006 12:47:13 AM PDT by Johnny B.
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To: Johnny B.; Enterprise

Thanks!


58 posted on 05/10/2006 6:25:29 AM PDT by CharlotteVRWC
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To: CharlotteVRWC

eBay...you will be able to get about the spot price after fees and shipping.


59 posted on 05/10/2006 7:42:24 AM PDT by oblomov (Join the FR Folding@Home Team (#36120) keyword: folding@home)
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To: Capitalism2003
Gold Supply/Demand chart:

.


60 posted on 05/10/2006 8:20:47 AM PDT by bjs1779
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