Gold soars to record near $1,900 on econ woes

Reuters ^ | Mon Aug 22, 2011 | Rujun Shen

[CitizenUSA]

I have no idea what’s going to happen to the price of gold. I only know it has risen very quickly in value. Has another important commodity kept up with the rapid increase in the value of gold? Do you believe an ounce of gold is worth what $2000 buys otherwise? $2000 will buy you more than 20 barrels of oil. Is one ounce of a shiny metal with few practical uses worth more than 20 barrels of oil, a couple very nice rifles, or a several months of groceries?

[cbkaty]

what the bubble alarmists don’t realize is that that trend may be from $4000 to $2500

ABSOLUTELY.....the new norm.... We got used to coffee prices in similar but smaller cans....gasoline prices, bottled water....so why would gold be exempt?

GRIN.............Gold the "next greatest" equalizer....

[cowtowney]

Inflation adjusted price of gold for some perspective

[Atlas Sneezed]

Is one ounce of a shiny metal with few practical uses worth more than 20 barrels of oil, a couple very nice rifles, or a several months of groceries?

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Even without doing the math, I can answer this one simply:

“Yes, and it always has. And always will.”

(Thanks for teeing that one up for me).

[misanthrope]

img src=http://www.croplife.com/articles/image/2011-02/Ag_Commodity_Prices.jpg””height=218””width=285";></img

[misanthrope]

"but commodity prices aren’t rising that fast."

Please refer to accompanying graph;

You can see (according to this chart) that commodity prices certainly are rising as fast as gold, some faster. There is a time lag between producer/manufacturer transactions and when you see resultant price increases on store shelves mostly (I suspect) due to competitive pressures.

I'll bet you've noticed prices rising, package sizes shrinking.

[misanthrope]

please pardon # 25, I’ve got an itchy “post” finger

[blam]

[hannibaal]

bump for gold down 5%