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Gold nears record high as some investors seek cover
LA Times ^ | April 29, 2010 | Tom Petruno

Posted on 05/02/2010 6:35:20 PM PDT by Jet Jaguar

Rather quietly, gold once again has been playing its classic role of a haven in times of rising uncertainty.

Near-term gold futures in New York jumped $11.70 to $1,180.10 an ounce on Friday, the metal’s highest level of 2010. The price now is within 3.2% of the all-time closing high of $1,217.40 reached on Dec. 3.

The SPDR Gold Trust exchange-traded fund, designed to track bullion’s market price, is up 7.5% year to date to $115.36 a share, beating the 7.1% return of the Standard & Poor’s 500 index (including dividends), after the S&P index lost 2.5% this week.

Silver and platinum also have rallied sharply since early February, to $18.61 and $1,745 an ounce on Friday, respectively.

Some investors and traders clearly are turning to precious metals as a hedge against Europe’s government-debt crisis. Gold has gained 3.3% just in the last six trading sessions, after Greece formally requested the financial bailout offered by the rest of Europe and by the International Monetary Fund.

SNIP

Well, maybe not 100%. The growing damage to the reputation of Goldman Sachs Group, Wall Street’s preeminent investment bank, also may be driving some investors to seek a hedge against the possibility that Goldman’s woes could lead to a new chapter in the financial crisis that began in 2007.

Reports on Friday said Goldman has become the target of a criminal investigation by the Justice Department, driving the bank’s shares down 9.4% for the day -- and wiping out more than $8 billion of the firm’s market capitalization.

But as a buffer against calamity, gold hasn’t been foolproof since the Great Recession began. In the financial-system meltdown of September-to-November 2008 the price dived from $909 to $705 over seven weeks as investors sold anything they could to raise cash.

(Excerpt) Read more at latimesblogs.latimes.com ...


TOPICS: Business/Economy
KEYWORDS: gold; silver

1 posted on 05/02/2010 6:35:21 PM PDT by Jet Jaguar
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To: Jet Jaguar

But I thought we are in a big fat recovery???!!


2 posted on 05/02/2010 6:43:15 PM PDT by The Magical Mischief Tour
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To: Jet Jaguar
But as a buffer against calamity, gold hasn’t been foolproof since the Great Recession began. In the financial-system meltdown of September-to-November 2008 the price dived from $909 to $705 over seven weeks as investors sold anything they could to raise cash.

Gold served well in that capacity, providing funds for those who were otherwise losing their shirts. For most their average cost basis for the gold was less than their forced sale prices.

3 posted on 05/02/2010 6:44:14 PM PDT by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: Jet Jaguar

Interesting as my broker bought some SPDR stock early last week for my portfolio.


4 posted on 05/02/2010 6:44:52 PM PDT by Parley Baer
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To: Jet Jaguar

Last ones in, first ones to lose.


5 posted on 05/02/2010 6:46:41 PM PDT by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: Jet Jaguar

When the democrats really rev up their currency printing presses in Enemy Occupied Washington, Gold will reach $1300 an ounce easily.


6 posted on 05/02/2010 6:46:52 PM PDT by FormerACLUmember ("Subtlety is not going to win this fight": NJ Governor Chris Christie)
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To: Jet Jaguar

Yes, I see you’ve posted a gold story after our earlier exchange. There are plenty of reasons to invest in gold, including those mentioned here. Another one is that the technicals all look good at this time, IMHO.

As a matter of principle, I wouldn’t advise anyone to go out on a limb and invest money they might need to pay the bills. But this seems to me a good time to put at least some money into it.

And people might want to consider putting some into physical gold, if you’re worried that Obama has a bad habit of grabbing other people’s property. Worse than FDR, who set the example.


7 posted on 05/02/2010 6:53:19 PM PDT by Cicero (Marcus Tullius)
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To: arthurus
For most their average cost basis for the gold was less than their forced sale prices.

It is all in the timing of the purchase and sale, eh? For those who held after 2008, it has paid off handsomely. Current price being $1177.00 an oz.

That makes the November 2008 price at $705 a very real bargain.

Gold is not traditionally a buy and sell commodity, but a solid asset that can be a hedge against inflation, turmoil during a currency crisis and a safe net during strife, war and national and international calamity. Many would suggest we are in that triumvirate of conditions now...

8 posted on 05/02/2010 6:54:51 PM PDT by vox_freedom (America is being tested as never before in its history. May God help us.)
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To: Cicero

My shtf investments are not accessible by the gov.

It seems they all are on the periodic chart.


9 posted on 05/02/2010 7:01:24 PM PDT by Jet Jaguar (*)
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To: jiggyboy

Ping.


10 posted on 05/02/2010 7:02:22 PM PDT by Jet Jaguar (*)
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To: Cicero

You’re probably a lot mor in tune with technicals than I am but I also like silver. I have for about the lat year.

I’ve been accumulating silver bullion in small amounts each month. I plan on holding it for quite a while - I’m thinking at least 5 years.

At this point, I’m trying to decide whether to continue doing my monthly purchase - or sit back for a while and see if it peaks in the next six months or so.


11 posted on 05/02/2010 7:08:45 PM PDT by MplsSteve (Don't Be Stupak!)
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To: Jet Jaguar

I wish I had ignored everyone that told me gold was a terrible investment when it was $480 an ounce.


12 posted on 05/02/2010 7:21:00 PM PDT by RockyMtnMan
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To: MplsSteve

I think the Hunt brothers kind of distorted the price of silver the last time around, and then got shafted by the Boyz at Comex, with the help of their political friends. But most people think that silver will move faster than gold when it gets going, and it may well do so now.

I do hold a few silver stocks, including SLV, PAAS, HL, EXK, and GPRLF. The gold:silver ratio currently favors gold, which probably means that at some point silver should do better as it catches up and goes past. But you may have to be nimbler.

No argument, in any case.


13 posted on 05/02/2010 7:23:25 PM PDT by Cicero (Marcus Tullius)
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To: Cicero

Sorry, I meant SLW.


14 posted on 05/02/2010 7:25:49 PM PDT by Cicero (Marcus Tullius)
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To: RockyMtnMan

“I wish I had ignored everyone that told me gold was a terrible investment when it was $480 an ounce.”

Hehehehehe. I still have some I bought at $35.00 an ounce. I have it for “just in case”.


15 posted on 05/02/2010 8:16:47 PM PDT by Parley Baer
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To: Jet Jaguar

Any thoughts on whether possession of gold will be made illegal again, as I believe was done during the last “great” democratic regime of FDR?


16 posted on 05/02/2010 8:18:34 PM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: Oceander

When it comes to metals, I’ll split the difference with them.

I’ll give them my lead and copper, and keep the gold and silver.

Fair, no?


17 posted on 05/02/2010 8:29:05 PM PDT by SnuffaBolshevik
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To: Jet Jaguar

Bailing out Greece was like bailing out Otis the Drunk. Fiat currency is already in the grave but no one wants to admit it, which makes the scramble to save the Eurozone a veritable laugh riot.


18 posted on 05/02/2010 8:29:22 PM PDT by Rutles4Ever (Ubi Petrus, ibi ecclesia, et ubi ecclesia vita eterna!)
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To: Jet Jaguar

LOL

In January 1980 gold hit a record 850 US dollars an ounce.

In 2010 dollars that would be 2184.48 in 2009 dollars.

Looks like some folks may have a ways to go to break even....


19 posted on 05/02/2010 10:47:47 PM PDT by ASOC (I am available for spill response work, all I ask is $800/day plus expenses.....)
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To: SnuffaBolshevik

Sounds fair to me!


20 posted on 05/03/2010 3:18:12 AM PDT by Oceander (The Price of Freedom is Eternal Vigilance -- Thos. Jefferson)
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To: vox_freedom

I have some gold and my average buy price is around $600. That includes a bit at $280 or so.


21 posted on 05/03/2010 4:50:36 AM PDT by arthurus ("If you don't believe in shooting abortionists, don't shoot an abortionist." -Ann C.)
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To: arthurus
I have some gold and my average buy price is around $600. That includes a bit at $280 or so.

Bought gold when it was in the high $300.00 low $400.00 range. Not a bad investment, except I should have bought a lot more at that price level. :o)

22 posted on 05/03/2010 5:04:27 AM PDT by BluH2o
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To: PA Engineer; blam; TigerLikesRooster; Cheap_Hessian; CJinVA; Jet Jaguar; OneLoyalAmerican; ...

Goldbug Ping

FWIW, I myself will be lightening up just short of $1200 gold. I KNOW it ain’t gonna go straight to new highs, and except for the Goldman Sachs stumble, it’s been on a rampage for over a month. Time for a little “consolidation” IMO.

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


23 posted on 05/03/2010 5:12:56 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: jiggyboy

Gold has been moving within the range of $1070 and $1170 for last several months. Probably by the end of this year, $1,200 could become the new normal around which its price fluctuate.


24 posted on 05/03/2010 5:48:34 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: jiggyboy

Reports are trickling in the the Justice Department is looking into possible criminal activity and price fixing in the silver market by the large bullion banks...


25 posted on 05/03/2010 5:55:21 AM PDT by djf
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To: djf

I saw an article at zerohedge on that, but decided not to post it. They’ve jumped the gun a couple of times on other things, and even the “money” DoJ quote there was IMO little more than “we’ll get back to you” boilerplate.

And even if they do get serious, I have no doubt whatsoever that we would first see another 40% drop in silver a la summer 2008 as a deliberate and coordinated effort with JPM et al to close out their short positions.


26 posted on 05/03/2010 7:46:24 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: jiggyboy; DelaWhere; Velveeta; CottonBall; betsyross60; WestCoastGal; LibertyRocks

Thanks to jiggyboy for starting a gold ping list, very interesting.


27 posted on 05/03/2010 8:34:50 PM PDT by nw_arizona_granny ( garden/survival/cooking/storage- http://www.freerepublic.com/focus/chat/2299939/posts?page=5555)
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