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Apr-24-2011Gold and silver set new highs(topic overview)
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Price pressures continue to rise in Europe's largest economy, and with European Central Bank President Jean-Claude Trichet noting that the rate hike on April 7 might not necessarily be the first in a series of rate hikes, it is likely that further evidence of price pressures in Germany could send investors fleeing towards bullion and other precious metals as a hedge against inflation. The most important event of the week, however, comes later in the North American session, when the FOMC is expected to maintain the key interest rate at 0.25 percent, as it continues its $600 billion stimulus plan, dubbed 'quantitative easing 2.' While a U.S. Dollar rally on the heels of hawkish commentary by Federal Reserve Chairman Ben Bernanke would certainly stunt gold's parabolic climb, the markets view a shift in FOMC policy unlikely to occur at this meeting, with the Overnight Index Swaps showing a 0.0 percent chance of a 25-bps rate hike at the meeting. On a technical basis, bullion continues to hold above its 20-SMA, and the 50-SMA has widened the spread over the 200-SMA, a historically bullish sign. The precious metal remains well-above its rising trend line off of the November and December highs; said trend line now acts as a level of support, with $1514.00 as the main resistance headed into the coming week. [1]
Gold futures notched record highs Thursday morning, remaining above the benchmark value $1,500 per troy ounce as the U.S. dollar continues to weaken and concerns again reared about debt-hobbled euro zone banks, Bloomberg reports. Greece begins its second year of trimming debt as the dollar plunged to its lowest value in nearly three years when compared to six counterpart currencies. Far this year, the precious metal has increased more than 6 percent in value and its record price now stands at $1,508.88 per troy ounce. [2] The most recent high-water mark for the precious metal is $1,509.60 per troy ounce, which surpasses the previous record of $1,508.40 per troy ounce that was set earlier in the day. Analysts attribute gold's healthy performance to bleak economic data, including the weakening U.S. dollar and debt troubles in Greece one year after the nation received a bailout for its hobbled banks and financial institutions. [3]
For the sixth straight day, gold set a new record Friday, and for the seventh straight day, silver returned to highs not seen in 31 years as continued concerns over debt, oil, political unrest, and the U.S. dollar haunted investors. Reuters reported that Friday saw new record prices for spot gold touching $1,512.50 per ounce before dropping back down to $1,507.69 in early European trading; it looks set to record a gain of 1.5% for the week in a fever that has taken its price to new heights for six straight days. Silver outpaced gold in its race to the top, revisiting territory it has not seen since 1980 and coming in at $46.69 per ounce. [4] Early Friday, the price of gold touched $1,512 per ounce as flows into hard assets continued on the back of worries about the stability of the U.S. dollar. News that S&P; Ratings Service downgraded its long-term outlook on the United States to '''negative''' from '''stable''' gave a boost to gold prices earlier in the week. Investment demand for gold surged as a result of the ratings change, prompting investors to increase their allocations to the precious metals complex. [5] Zero nominal interest rates combined with a massive expansion of the Fed'''s balance sheet to over $2.6 trillion have provided a tailwind for the gold price. With Fed Chairman Bernanke largely silent over the course of the past month, investors are betting that he is not ready to normalize monetary policy. Dollars are sold, or shorted, and the proceeds invested in higher-yielding, or riskier, assets such as commodities, stocks, and foreign currencies. Precious metals such as gold and silver have benefitted from their store of value qualities. They cannot be hypothecated via a printing press like hundred dollar bills. Institutional investors such as John Paulson, David Einhorn, and George Soros recognized this early and moved a portion of their assets under management into gold and into other investments tied to the gold price, such as gold mining stocks. [5]
Precious metal gold continues to trend upwards and the price per ounce, gram and kilo rates all climbed throughout the last week of trading. It was another week of gains for the precious metal which now has put together several consecutive weeks in the green. Gold and silver metal trading has been popular as of late as the dollar weakens versus other major currencies and investors fret over other factors such as world concerns pertaining to debt. [6] Uncertainty about the economy's strength, fears about rising prices, worries over global instability. Investors are facing an onslaught of headlines, from inflation to turmoil in North Africa, that is driving them into the arms of gold. The precious metal blew past $1,500 an ounce this week to record levels in dollar terms, rising for six straight sessions. The precious metal is still trading below its inflation-adjusted peak of about $2,200 an ounce, however. [7] The continued euro-zone debt crisis, turmoil in the North Africa and Middle East had raised the global inflation, and fears amid the fiscal stability of the U.S. ignited the persistent rally in the prices of notable metals. The spot gold jumped to $1,512.50 per ounce, before trading at the low'''s of $1,507.69, posted a weekly gain of 1.50% in its sixth uninterrupted week of increase. [8]
Brokers say that it'''s the safest investment. This week, the gold price on international stock exchanges exceeded $1,500 per ounce, reaching a new record. According to AFP, this happened as a consequence of the persistent uncertainties in the global economy. Therefore, Wednesday afternoon, the yellow metal reached the record of $1,500.70 an ounce on the Hong Kong Stock Exchange. [9] Gold reached $1,508.20 per ounce, and silver reached $47.73 per ounce. 'That's as high as it's ever been,' said Mike Omeloch, owner of Ridge Coin & Stamp Exchange on East Ridge Road. Omeloch has been in business for 38 years, and he's seen a lot of ups and downs. 'The price of silver and gold changes every minute -- it's just like a stock on the exchange,' he explained. This year alone, the price of gold has risen nearly six-percent. What's the driving factor? Omeloch says it's good ol' supply and demand. [10]
Analysts pointed out, however, that physical demand for gold has been reduced to nearly nothing as prices have risen. Other precious metals also saw price gains as May silver added $1.60 to $46.06 per troy ounce and gained 8.2 percent on the week, while July platinum was up $17.90 to $1,820.70 per troy ounce and was 1.6 percent higher this week and June palladium gained $10.15 to $769.05 today in New York trade but was up just 0.1 percent on the week. [11] Among the things investors were worried about were uncertainty over the results of last month'''s earthquake and tsunami in Japan, especially in light of statements earlier in the week that it could take months to stabilize damaged nuclear reactors and stop leaks of radioactivity from the reactors, as well as over the continuing political conflicts in the Middle East and North Africa, debt problems in Europe and risks over U.S. debt and its credit rating. An official of the International Monetary Fund was quoted in French media as worrying about the seeming inability of the United States to agree on a plan to deal with its growing deficit, while the U.S. Treasury Department estimated that the U.S. will hit its $14.3 trillion debt ceiling on 16 May if not earlier, and that it will exhaust options to avoid default in early July if a viable plan isn'''t agreed to soon. Other precious metals were also higher as May silver added 70 cents to $44.62 per troy ounce, July platinum gained $29.50 to $1,800.80 per troy ounce and June palladium was up $26.40 to $757.50 per troy ounce, all in New York trade. [12] June gold added $4.90 at the close of floor trade in New York to a new closing high of $1,503.80 per troy ounce, while it also set a new intraday high earlier in the session at $1,509.60 per troy ounce for a gain of 1.2 percent on the week. Gold was still attracting buyers on concerns about the economy that were intensified after Standard & Poor'''s cut its long-range outlook on U.S. debt, dropping it from '''stable''' to '''negative''' at the beginning of the week amid warnings from the U.S. Treasury Department that the U.S. could reach its debt ceiling next month and will run out of options to avoid default in July if the government does not take steps soon to agree on a solution to the nation'''s debt problems, while the U.S. dollar weakened, making purchases of commodities in other currencies less expensive. [11]
THE U.S. dollar sank to a three-year low against major currencies on Thursday and gold surged to a new high as investors piled into investments that are less reliant on the U.S. economy. The negative sentiment on the dollar accelerated this week on signs of a slowing U.S. economy and Standard & Poor's warning on Monday that it might take away the US's coveted AAA credit rating within two years if Washington failed to achieve a plan to slash its $14-trillion debt load. [13]
Dec 7 - Gold reaches a fresh record high above $1,425 an ounce, driven by fund buying ahead of year-end, jitters over the euro zone debt crisis and speculation for further U.S. monetary easing. January 2011 - Gold prices fall more than 6 percent in their worst monthly performance in over a year as a revival in risk appetite diverts investment to higher-yielding assets. [14] May 11, 2010 - Gold reaches fresh record high above $1,230 an ounce as fears over the contagion of debt issues in the euro zone fuel safe-haven buying. June 21, 2010 - Gold jumps to a new high at $1,264.90 an ounce as underlying fears over financial market stability and sovereign risk combine with dollar weakness to push the metal through resistance at its previous high. [14]
A weak dollar and rising oil prices catapulted gold catapulted past $1,500 an ounce yesterday on the New York Mercantile Exchange. That'''s good news for precious metals traders and people who want to sell jewelry, but bad news for consumers. [15] May 12, 2006 - Gold prices peak at $730 an ounce with funds and investors pouring money into commodities on a weak dollar, firm oil prices and political tensions over Iran's nuclear ambitions. June 14, 2006 - Gold falls 26 percent to $543 from its 26-year peak after investors and speculators sell out of commodity positions. [14] April 11, 2006 - Gold prices surpass $600, the highest point since December 1980, with funds and investors pouring money into commodities on a weak dollar, firm oil prices and geopolitical worries. [14]
"The surge in gold prices shows that due to lack of confidence in the stock markets because of economic uncertainty globally and in the region, investors are shifting to gold as a safe haven," Faisal Alsayrafi, managing director and CEO of the Financial Transaction House (FTH), said. A second day of deep losses for the dollar and near 2 percent gains in oil and grain markets that fueled further inflation concerns also buoyed bullion, which once again rose in tandem with riskier assets like equities as investors shifted their focus from gold's role as a safe-haven play to its potential as a store of value, Reuters reported. [16] The past week saw gold gain in price everyday and finally closing at $1507.04 on Friday. This was a decline from Friday's peak of $1512.68 and an impressive 1.4 percent gain for the week, and an all-time record close price. Geopolitical tensions in the Middle East continue to fuel concerns about oil supplies, and a weaker U.S. dollar coupled with inflation concerns, have kept the markets interested in hedging their investments with gold. [17] Gold hit anther all-time high overnight, touching $1,512 per ounce before settling back at $1,509, up $4.00 from yesterday's close.'' Gold prices rose for the third consecutive week, climbing as the U.S. dollar fell to its lowest level since August of 2008 as measured by the U.S. Dollar Index (DXY). [18] At the outset, gold prices were fixed at $42.22 per ounce but by February 1972, moved to $48.26 as trading began. From there a steady rise would ensue to levels 17 times greater than this initial trading price. [19] The Fed Funds rate was 5%. These levels marked the bottom for interest rates during the period when gold began trading in earnest in 1972 - levels that would not be seen again for decades. From that point on, both interest rates and the gold price rose steadily. By the time the gold price peaked at $850 an ounce, the Prime Interest Rate was 15.25%, 3.4 times its level when gold trading began. [19] If we now flash forward to find the next time interest rates reached an undisputed bottom, we find ourselves at a time just before Christmas 2008. On December 16, 2008 the Prime Rate moved from 4% to its current low of 3.25%. On the same day, the Fed moved its target Fed Funds Rate off of 1% to 0.00% -.25%. Where was the gold price at this key point in time? Precisely and ironically, gold was $850 an ounce. Since December 16, 2008, both rates remain unchanged with no immediate signs of increase. [19]
U.S. markets are closed for the day so investors have time to process the record high numbers relating to price per ounce gold and silver rates. [20] Traders that favor cycle theories perhaps may be more comfortable with the Silver. As an industrial metal, the Silver may have more appeal, but the Gold as a precious metal and currency will have its potential demand as traders seek the safe-haven properties. It is an emotional market and the frenzy is in motion for the moment. It is building momentum and may for some time. It may slow the pace of its extensions and have retracements, but it should seek higher levels with the increased volume and the U.S. Dollar growing weaker by the day! At the level Gold is trading, investors may get nervous! Retracements are possible. [21] U.S. Dollar Index futures are traded for 22 hours a day on the electronic trading platform of the Intercontinental Exchange (ICE). Why am I elaborating on the U.S. Dollar as a Gold Trader? While the U.S. Dollar remains weighted against the six major currencies, Gold may be boosted by a variety of factors: It is purchased as a safe-haven by investors shifting from low interest bearing government bonds and other products that cannot keep up with the rate of inflation. [21]
Silver has answered gold, and then some. THE WEAK U.S. DOLLAR helped buoy gold and silver Wednesday, a day on which the gold/silver ratio moved lower, writes Gene Arensberg in his Got Gold Report. The uncommonly weak U.S. Dollar Index (DXY) closed Wednesday at 74.37, within "sniffing" distance of its November 2009 turning low of 74.23. As we write this, the DXY continues lower, currently trading through the 73.80s, which is, of course, below the lows of 18 months ago. [22] The Gold price rose to record highs Thursday for a 5th straight session, and Silver ]] Silver ]] Silver climbed as the U.S. Dollar index fell for a 3rd day toward a multi-year low, prompting players to buy Bullion as a currency hedge. [23]
I thought that Gold and Silver was a hedge against inflation?? Is it any wonder why gold and silver are moving higher and higher?? Ask OPEC (or Saudi Arabia) about oil- We will not increase our oil output; oil prices are not rising because of a supply problem, oil prices are increasing because the U.S. Dollar is losing its value through inflation'''the printing of trillions by the FED. [24] The record-setting price comes from a weaker U.S. dollar. That coupled with rising oil prices as well inflation in emerging economies such as China and India sent investors running to gold in droves. [15]
The U.S. economy is considered a safe haven for investors in times of global turmoil. What happens when the global safe harbor risks losing its safe haven appeal? The U.S. dollar has been gradually falling, losing its value and in investors' eyes the dollar began losing its sparkle. Heightened risk aversion combining with the dollar losing its luster resulted in higher demand for gold and silver. [25] Central banks are seen to be accumulating gold and silver now, and that is because there is a tacit consensus that gold and silver have a role to play in the globalized monetary future. That concept not only enhances demand for these metals, but it legitimizes their value as investments for the general public. I am personally of the opinion that, contrary to conventional conspiracy theory suggesting that the United States has no gold, the government is using a portion of its fabricated ersatz capital to accumulate gold and silver surreptitiously, fully cognizant of the fact that the U.S. dollar is doomed. It's fraudulent, and criminal. Not to harp on and on, but this government should go to jail. I don't include Obama in that, because I think he's a good man who has inherited a viper's nest and lacks the deep economic savvy to forge a solution. That is evidenced by his appointment of the same incumbent economic advisors and managers who have overseen the willful destruction of the American economy. [26]
Central banks' monetary tightening moves are creating an uncertain environment in the markets while recession still remains a thread. By tightening their policy, Europe is risking a debt contagion and the UK risks falling into a double dip recession. The monetary uncertainty in Europe and the UK offers support for gold and silver as investors turn to the precious metals to hedge their investments from monetary uncertainty. [25] February 20, 2009 - Gold rises back above $1,000 an ounce to a peak of $1,005.40 as investors buy bullion as a safe store of value as major economies face recession and equity markets tumble. April 24, 2009 - China announces it has raised its gold reserves by three-quarters since 2003 and now holds 1,054 tonnes of the precious metal, boosting expectations it may add further to its reserves. August 7, 2009 - European central banks opt to renew their earlier agreement to limit gold sales over a five-year period, setting the sales cap at 400 tonnes a year. [14] Gold and silver have traditionally been considered a safe haven investment as they are commonly perceived to be a reliable store of value. Investors buy the precious metals due to their safe haven appeal in political, social or economical uncertain situations. When things become risky and uncertain, demand for gold and silver rises because no matter what happens they will always be precious, valuable and a sign of wealth. [25]
PRECIOUS METALS: The price of gold hit record highs above $1,500 as investors piled into the traditional safe-haven precious metal. [27] In India, gold increased to a record high of about $497 per 10 grams following a global surge. This has triggered purchases from investors looking to protect themselves against rising inflation while scaring traditional consumers away from the markets. In New Delhi's jewelry market of Karol Bagh, the shopkeepers are worried about losing their long-time customers whose numbers have dwindled following a prolonged increase in the price of gold. "There are more investors in the market and they are buying bullion bars and less of jewelry. [28] Sept 16-22, 2010 - Gold hits record highs for five successive sessions, peaking at $1,296.10, as investors flock to bullion after the Fed signals it may consider further quantitative easing, weakening the dollar and raising fears over future inflation. [14]
LONDON, Apr 21, 2011 (AFP) - Gold prices topped $1,500 this week for the first time on record due to concerns over rising global inflation and debt levels, while oil advanced in volatile trade. Markets will shut Friday on both sides of the Atlantic for the long Easter holiday break. [27] Price of gold has risen above $1,500 an ounce for the first time after concerns regarding global economic recovery lifted the metal's appeal as a haven. In Hong Kong trade, gold reached $1,500.70 an ounce, which traders said was mainly due to Standard and Poor's downgrade of its outlook on U.S. debt. [29]
April 21--JEDDAH/RIYADH -- Retail prices of 22-carat gold in the Kingdom reached an all-time high of SR168 per gram after the price of the precious metal touched $1,505 an ounce on the international market for the first time on Wednesday. [16]
NEW YORK, Apr. 21, 2011 (Kyodo News International) -- Gold prices continued hitting fresh intraday and closing highs Thursday in New York, ending above $1,500 an ounce for the first time, on a weaker dollar. [30] Nov 8 - Gold prices break through the $1,400 an ounce mark for the first time as haven buying prompted by renewed budget problems in Ireland more than offset a sharp dollar bounce. [14]
DES MOINES --In January gold was at 1375 an ounce, now just a few months later, it's up to $1,500 dollars an ounce and silver is speeding up right behind it.The price of gold has hit an all time high Thursday, coming in at $1505. Silver prices are $46 an ounce, their highest in nearly three decades. [31]
The spot gold price hit an all-time high of $1,512.50 an ounce before easing slightly. The price of silver also rose, reaching its highest level for 31 years. The value of silver has rocketed by just over 50 per cent this year, outpacing gold, which has increased by 6 per cent over the same period. [32] Gold pushed through the 1500 per ounce barrier several times during the last week of trading and silver prices are trending at levels higher than any seen in over thirty years. [6] The inflation supports the Gold Market along with the budget deficit worries here. The Silver Market actually is leading the Gold at this time. The Silver is more of a poor man's Gold and at these prices, one can see why it may be favored. While the Silver has actually traded higher than its current level 31 years ago, Gold is seeing new highs. [21]
RSI on spot silver went up to close near 89, which was the peak in 31 years. The vice president and portfolio manager at Baskin Financial Services, Barry Schwartz, shared his thoughts that the gold market topped its estimates and it is the right time to sell the commodity but traders still disbelieve. One of the key reasons for the precious metal was weakening of dollar as the dollar index, which measures the dollar unit against the basket of major currencies, dipped to 73.99 after declining to its lowest level since mid 2008. [8] A land developer, professional numismatist, self-taught bullion trader and investor since 1980, Gene Arensberg analyzes technical and fundamental developments in the precious metals markets. In 2000 Gene started sharing his own market research with fellow traders and fund managers. Those email reports evolved into his popular Got Gold Report, a biweekly look at important indicators for gold and silver published on the web. [22]
In contrast to gold, central banks do not hold much silver. They are therefore less able to push down the price of silver by dumping inventory when rising metal prices undermine currency confidence. So far this year, silver is up nearly 50% while gold is up only about 6%. Given these figures, investors may be forgiven if they feel that the big move in silver may be over. [33] Wednesday, the consumer price index and FOMC interest rate decision will be released. Another factor is upward price pressures that continue in the largest European economy and the fact that European Central Bank President Jean-Claude Trichet has hinted that the latest interest rate increase won't be the last. This could have German investors leaving the market to invest in gold, furthering the bull run on bullion. [17] The U.S. central banks' policy is designed to keep interest rates low; cheap credit typically encourages borrowing, which stimulates econommic growth. Those low interest rates also make other forms of saving less attractive. Gold prices have risen more than 6 percent this month alone; roughly double what you can get from holding a U.S. Treasury bond for a full year. [7] With interest rates rising some 10 percentage points in 8 years, we learn the correlation between the rise in gold prices was a compounded 33% for every rise of just one point in interest rates. It must be noted, during the same period stocks rose a mere 1%. [19]
Today, we find ourselves in a lively debate over whether we are in an inflationary cycle or deflationary cycle. I will submit, as the markets express uncertainty over even this, the move higher in gold prices, since rates bottomed in December 2008, is more likely attributed to a safe-haven play than it is to inflation fears and rising interest rates. Now a case can easily be made that the real gold bull market has not yet begun and will not until such time as rates begin a decided move higher. With interest rates locked in at these bottoms, there is only one way for them to go and that's up. [19]
The downgrade sent global share prices tumbling on Monday, coming amid growing concerns over global inflation, with China, India and the eurozone struggling to control prices. Metals consultancy GFMS forecasts that gold prices will soar past $1,600 this year, driven primarily by fears over high inflation. [27]
Since April 2001, when gold prices hit a 22 year low of $255.95 an ounce, the gold price has risen some 400% as the gold market reacted to a myriad of various stimuli at different times. [19] Sept 27 - Spot gold prices touch the $1,300 an ounce mark for the first time. [14]
"The reason for the sudden increase in prices is due to a sudden jump in the price of gold which has finally exceeded $1,500 per ounce," a gold merchant from Dream Jewelry told Arab News. He predicted that the prices would continue to rise till it reaches $1,600 per ounce. [16] The increase was seen after price of gold in the international market hit a record high with the depreciation of Pakistani rupees, sources said. This was another record high price following the international price of gold hit a fresh record i.e. above $1,500 per ounce. [29] December 3, 2009 - Gold hits record high at $1,226.10 an ounce, with dollar weakness and expectations for central banks to diversify reserves into gold driving prices higher. [14] Oct 7 - Gold rallies to a record high above $1,360 an ounce as the dollar comes under pressure from building expectations for the U.S. Federal Reserve to take extra measures to keep interest rates low and prop up the economy. [14] Oct 13 - Gold jumped to record highs near $1,375 an ounce as the dollar continued to languish, with the U.S. unit coming under pressure after minutes from the Fed's September meeting signaled the U.S. economy may need further stimulus. [14]
Spot gold reached another record high at $1508.75 an ounce, while spot silver soared to a 31-year high at $46.24/oz. "People want hard assets and that's what they are comfortable with," said Randy Billhardt, head of institutional sales and trading MLV & Co in New York. [13] Gold futures for June delivery climbed $3.80 from Tuesday to close at $1,498.90 an ounce on the New York Mercantile Exchange, rising for the sixth consecutive trading day. [34] One day after setting high marks at least twice during one session, gold futures' new all-time high is $1,512.47 per troy ounce. [35] At 1:25 p.m. on Thursday, gold futures gained 0.41 percent, a $6.20 rise to $1,505.10 per troy ounce. [3] Since the markets were not open for the Good Friday holiday, gold futures closed Thursday having increased 0.33 percent, a $4.90 gain to $1,503.80 per troy ounce. [35]
Analyst at Shanghai CIFCO Futures, Li Ning, said that gold would probably to stay around the $1,500.00 per ounce over the next week. He added that the sharp gains might be adjusted against a profit taking by the traders. [8]
Silver followed the gold'''s pattern reaching the highest value in the last 31 years, $44.79 per ounce. [9]
Smaller investors may find gold too expensive at $1,461 an ounce, but may be nevertheless prepared to buy several ounces of silver for much less. Potentially, this '''poor man's gold' ''market may help drive silver prices far faster than gold. [33] In the early 1990's, with silver out of favor with investors, the ratio approached 100. At the beginning of this century gold stood at some $250 an ounce and silver at $4, putting the ratio at about 62. [33]
September 17, 2008 - Spot gold rises by nearly $90 an ounce, a record one-day gain, as investors seek safety amid turmoil on the equity markets. [14]
March 1 - Gold recovers to hit a record high at $1,434.65 an ounce as unrest in Tunisia and Egypt spreads across the Middle East and North Africa, boosting oil prices. March 7 - Gold extends record highs to $1,444.40 an ounce as oil prices hit their highest in 2-1/2 years after protests are quashed in Saudi Arabia and as violence in Libya rages. [14] June gold hit a most-active-contract record of $1,509.60 an ounce Thursday on the Comex division of the New York Mercantile Exchange. This represented a 5.9% gain for the year. [36] June gold was up $3.80 to $1,498.90 per troy ounce in New York trade, another new record close, after going as high as $1,506.20 per troy ounce to set a new intraday high. [12]
August 1971 - U.S. President Richard Nixon takes the dollar off the gold standard, which had been in place with minor modifications since the Bretton Woods Agreement of 1944 fixed the conversion rate for one Troy ounce of gold at $35. [14] After weeks of range trading and congestion, Gold has continued its march higher and higher, setting all-time highs everyday this week. Gold gained every day this week, finally settling at $1507.04 on Friday, slightly off of its high from the day and the week, at $1512.68, marking a 1.4 percent gain overall for the week. Friday's close represents the highest such level bullion has closed at all-time.While the geopolitical tensions in the Middle East and North Africa region seemingly looming in the background, the markets turned their collective eye this week towards inflationary pressures, and a weaker U.S. Dollar following the S&P’s announcement on Monday that it would put the United States AAA rating on ‘negative’ watch. Friday's close represents the highest such level bullion has closed at all-time. [1] Let us not forget that the DXY is a measure of the greenback versus a basket of six other fiat currencies. It is not a measure of the Dollar versus gold. Gold, of course, is such a measure and gold has managed to gain a tentative toehold above the psychologically important $1,500 USD level, trading at $1,507 and change at the moment. [22]
WASHINGTON (NBC) -- More and more people are worried about the economy, and one big indicator of that fear is the price of gold. It's in record territory and people are trading their dollars for it. The experts say it's always a bad sign when people dump their dollars, but that's what's happening in the biggest move to gold ever. It's never been more valuable. Gold closed this week at over fifteen hundred dollars an ounce, which is an all-time high. People are selling their jewelry. [37] To the true die-hard gold believer, the idea of buying real estate at depressed prices to hedge against inflation and a plummeting dollar is seen as a fool's errand, while buying gold at record levels is seen the only safe bet. It's easy to point to gold as a store of value when prices are rising. They won't rise forever. This claim is almost laughable, but it wasn't born in a vacuum. Gold bugs have lived on the fringes of the investment world for so long they view themselves as the perpetual voices in the wilderness, as rebels set against the Wall Street establishment. [38] "Concerns about the debt positions of Europe and the U.S. and inflation in much of the world are driving demand for gold. These factors are likely to linger, which could push prices higher, though the extent of the rise in prices to date may limit the scope for more advances," Paul Gamble, head of research at Jadwa Investment, said. [16] You can steel yourself against inflation by using Treasury inflation-protected securities, or TIPS. Stable value funds found in workplace retirement plans have now weathered three stock downturns without turning negative. You might still do well buying gold, especially in the unlikely event that the U.S. loses its AAA rating on debt. [24]
Worries about Washington's failure to get control over the U.S. budget have battered the dollar, which gold buyers fear is headed lower still. Those fears have intensified recently as politicians have made a political football out of an upcoming vote to raise the limit of the government's borrowing authority. Republicans are demanding tough measures to cut spending before they'll agree to grant the Treasury the power to issue new debt once the current limit is reached in July. Doubts about the prospect of a deal in time to avert a default recently prompted Standard and Poor's to downgrade its outlook on U.S. debt for the first time in the rating agency's 150-year history. [7] Gold has no real use. The U.S. can, or will, sell its gold to pay its debt, depressing the market. High gold prices will bring on huge new production, which will depress its price. [24]
The prices continue to soar as the U.S. dollar begins to weaken even more. Places like, Christopher's Fine Jewelry in Des Moines has a constant flow of people trying to sell their gold and silver. [31] When the U.S. dollar is finally decommissioned, which it definitely will be, the replacement global trade standard must, in some way, be moderated by an official peg to the prices of gold and silver. While this arguably constitutes a gold/silver standard, it by no means implies that the currencies of the world must be quantitatively relative to a certain amount of gold or silver. That is the biggest misconception in the public. [26]
Well The price of oil shot up another $2 yesterday, and now sits at $111.94, so the '''dollar alternatives''' of oil, gold, silver and currencies, just keep taking turns beating on the dollar. [39] In terms of fundamental, market-centric drivers, many people are under the mistaken impression that the higher gold and silver prices go, the more negatively demand is impacted. I think that the higher the monetary metals go, the greater their demand is in terms of capital preservation strategies. That's because the higher they go, the stronger the correlation to and proof of an increasingly unviable dollar, thereby spurring demand. [26] 'The demand is there because of certain economic conditions, political conditions,' said Omeloch. Omeloch says a lot of people have been bringing in their old jewelry, coins, and even silverware. After he buys from his customers, he sends it to a refinery where it's melted down and made into bars. He says the government often buys the silver and gold and makes them into coins, which he then sells. It all comes back full circle. He says people are buying the coins as an investment. 'People are afraid that there dollar is going to be worth less, so they're trying to put money into something that'll hold its value,' said Omeloch. [10] Pay cash ONLY - I only buy coins - No Bullion, or Certificates - Get a safe. I have been buying silver too - because "Gold" is becoming too valuable and probably couldn't be "spent" in an emergency if needed - both are still a good investment though and are out performing anything else I could afford to invest in. I can only invest about 300-400 dollars at a time though, so the coins contain less gold than they uses to, that's why I have invested some in silver. I don't hold much, but it's a better investment than the banks and savings right now. [24] Clark sees the underformance of mining equities versus gold as a sign that a "mania" some fear has not occurred yet. This would be a condition in which so many investors suddenly pile into a market that a bubble forms, such as the Nasdaq and real-estate market crashes since the turn of the century. "That is probably the most important point that can be made," Clark said. "If the mania was really here-and one might think that is the case the way gold and especially silver are running to the upside--you would think gold stocks would not only be outperforming the metals but demonstrating three to four times the leverage that they have in the past. They're certainly not doing that. That's a clue we're not there yet." He said, the current situation could portend some type of consolidation or correction. This likely will "wash out" some newcomers to the market. [36] Analysts and fund managers attribute the stocks' collective underperformance to a simple preference among many investors to hold the metal itself at the moment, as well as rising operating costs for mining companies that limits profits even when they are also fetching high prices for the gold they sell. [36]
Kilic foresees a 10 to 20 percent reduction in the price of gold to occur within the next couple weeks. He said the Federal Reserve'''s decision to finish'' QE2 ''''' a program in which the Fed pledged to buy $600 billion to spark economic growth that ends in June ''' might be the cause of a '''sharp decline.''' Therefore, Kilic said gold futures investors should sell 50 percent of their holdings and buy it back after the anticipated reduction. [40] With many questions still unanswered and the inflation versus deflation argument still being haggled over, investors should have a better idea where the Fed Chairman lands. Gold prices have had a potent tailwind at their back as a result of Helicopter Ben'''s aggressive deflation-fighting campaign. We will find out next week if this will continue to be the case. [5] As rates stopped rising and held for the next 15 months, the rise in gold price slowed to a more tempered but still pleasing, 12% annual rate. A clear indication that this move, from 2003 to 2006, could be attributed more to rising rates and inflation fears than any other impetus. [19]
The local coin exchange business has boomed recently. Omeloch says just a few years ago, he was the only exchange store on East Ridge Road. Now, he says there's a half-dozen. 'Apparently there's enough business for everybody, because we're all doing fine,' he said. Even though this is the highest dollar amount for the price of gold, it's not a true record because of inflation. Gold reached its peak in the early 1980's. [10] "Prices will remain firm till the dollar stays weak. The dollar may remain weak this year," says Jayant Manglik, president, Religare Commodities, a brokerage firm. In its latest report, global metals consulting firm GFMS says inflation and improved income levels are also pulling investors to the yellow metal. [41] Gold is traditionally considered a value of safe haven that allows investors to protect themselves from the threat of inflation and market volatility. Considered as a godsend to investors, the last years' ascending value of the precious yellow metal has not disappointed those who bet on it. [9]
The price of gold is way up, but investors are cashing in on other precious metals too. [31]
Research has shown time and again investors flock to gold for safety, and its price goes up as a result. The U.S. is experiencing only one of those phenomena right now. [24] The U.S. dollar sank to a three-year low against major currencies on Thursday and gold surged to a new high as investors piled into investments that are less reliant on the U.S. economy. [13] Gold hit new highs again Wednesday as investors looked for safe places to put their cash and as the U.S. dollar weakened. [12]
Governments with U.S. dollar holdings are increasingly embracing the wisdom of dumping dollars in favor of better value stores, and gold and silver certainly fit that bill. [26] Yes. Rep. Glen Bradley wants North Carolina to issue its own legal tender backed by silver and gold. Delegate Bob Marshall wants Virginia to begin minting its own gold and silver coins as an alternative to the U.S. dollar. [42]
If you bought in when it was $800 an ounce you are doing very good and its time to take your profit. At this juncture its risky to own the metal outright as there is not much left in this blue sky. U.S. gold coins are fair to neutral in that you can put them away and forget about it. bankalchemist. [24] Gold for immediate delivery reached an all-time high of $1,512.47 an ounce before trading a $1,508.78 at 4:10 pm Seoul time. The metal is up 1.5% this week. [43]
If gold is $1400 an ounce at that time, just a 3% move higher in interest rates could see gold at $3290 an ounce based on current levels. [19] A 4% rise would only be equal to a 12-month retracement of falling rates from December 2007 to December 2008. A repeat of such a retracement could put gold at $4375 an ounce or up 200% in just 12 months. From there every added point to interest rates could become an explosion of its own as one single point higher in interest rates could see gold rise above $5,000 an ounce. [19]
Nathan Huey, an Associate at Gold Mart says, on Thursday morning, the price of an ounce of gold went up $5.00. The price of an ounce of gold can fluctuate, but as of Thursday afternoon, it's worth about $1,500.00. The rise in cost, Huey says, draws more people into their store. One reason for this, Huey says, is because people want to secure the value of their money in gold. Huey says people have come into their store, changing their savings from cash to gold. This he says will not make you money, but rather secure the value of your money. [44] The prices of gold were above $1,500 an ounce and many people are looking forward to invest in gold. [45]
"Gold prices traded through the $1,500 an ounce milestone. on the back of inflationary concerns and sovereign debt uncertainty," said Barclays Capital analyst Suki Cooper. [27] April 21 - Gold climbs to an all-time high at $1,508 an ounce, in a fifth consecutive record-breaking session, supported by a weak dollar and sovereign debt concerns. [14]
Fueled by a weakening dollar and a '''high inflationary environment,''' gold futures eclipsed a record $1,500 an ounce today.'' [40] Shaky financial data about the pluging''U.S. dollar and debt-weakened euro zone financial institutions propelled gold futures to set new record highs on Friday, Bloomberg reports. [35]
Gold struck a record high breaking above 1500 dollars an ounce and rising to 1508.82 from 1308.08 gaining 15.3%. Silver outperforms its more expensive counterpart and the gold/silver ratio hit a record low. [25] "I am predicting gold will be $2,000 an ounce by Christmas, 50 dollars plus for silver," say Hatchett. [46] December 1, 2009 - Gold climbs above $1,200 an ounce for the first time as the dollar drops. [14] September 8, 2009 - Gold breaks back through $1,000 an ounce for the first time since February 2009 on dollar weakness and concerns over the sustainability of the economic recovery. [14]
Gold has risen six percent since the start of the year, breaking a series of record highs along the way. It topped $1,000 for the first time in March 2008. [27] March 13, 2008 - Benchmark gold contract trades over $1,000 for the first time in U.S. futures market. [14] "The weak dollar is having the most influence on gold at the moment," said Chae Un Soo, a Seoul-based trader at Korea Exchange Bank Futures Co. "The market is getting more jittery now that we have sovereign-debt concerns about the U.S. in addition to Europe and the Middle East problems, which increasingly boosts safe-haven demand for gold." [43] Expectations that the Federal Reserve will keep U.S. interest rates near zero for the foreseeable future, even as other major central banks raise rates or are about to tighten, have pressured the dollar in recent weeks. With little chance of the Fed raising interest rates this year, the dollar index was down by 0.6% to 73934 after falling to 73735, and technical charts suggested the index could move towards a record low of 70698 hit in 2008. [13] At the same time gold trading began to spool up, the prime interest rate was at its lowest level in 12 years at 4.5%. [19]
Inflation has weakened the dollar as well with Crude Oil trading around $111.00. The budget deficit has also pressured the dollar as thoughts of the U.S. debt seem massive in comparison with austerity measures to curtail the deficit. The Euro Zone has been restructuring their debt and working on austerity measures for quite some time. It is thought that their rate hikes may advance their recovery to some degree even while making it difficult for the countries fraught with the sovereign debt to repay it. [21] "Gold will remain well bid as long as the ongoing debt and inflation worries persist," Ian O'Sullivan, Spread Co trading group analyst told AFP. [27]
"Sovereign debt concerns in U.S. and Europe along with inflation fears provide a good backdrop for gold." [2]
In the rising prices of gold and silver, we see irrefutable evidence of irresponsible and possibly criminal negligence in the management of our money. With the United States trapped in a cycle of fabricating vast electronic sums of debt with the virtual printing press, the mantle of legitimacy and cloak of secrecy proffered by the government's favorite off-balance sheet entity, the U.S. Federal Reserve, guarantees the inability of the will of the people to manifest itself and break free from this pattern. [26] S&P; noted, '''We believe there is at least a one-in-three likelihood that we could lower our long-term rating on the U.S. within two years.''' Gains in silver dwarfed the appreciation in the gold price again this past week. [5]
JW: Gold just put on in 30 days what it normally does in one year. Considering the macro economic factors in the world right now, and the steepening appreciation curve in both gold and silver, I think you're going to see an incremental average increase in the price of gold throughout the summer, with very high potential for corrective drops by as much as $100/oz. Gold is heading for $1,600/oz. this year, and silver is going to be $90/oz. within 24 months at the latest, if not sooner. [26] At Thursday's international price of $1,507, gold has given a 30% return over the last 12 months, and 143% over five years. It is no match for silver where returns have soared 155% in the past one year and nearly 300% in five years. [41]
With gold, you've always got the gold, whatever else happens. Since the major central banks have dishoarded all theirs suppressing the gold price over the last 20 years, you're in very little risk of a substantial decline in gold price. What're they gonna do, raise interest rates?!?!? FED can't do that, their hands are tied. [24] NEW YORK, Apr. 20, 2011 (Kyodo News International) -- Gold prices continued hitting fresh intraday and closing highs Wednesday in New York on a weaker dollar. [34] Gold prices set more new records in New York trade Thursday, ahead of the three-day weekend in New York and four-day break for most of Europe and some other global markets to mark the observation of Easter. [11]
Among base metals, May copper was up 3 cents to $4.33 per pound in New York, while three-month contracts for the metal used in construction and manufacturing added $240 to $9,580 per tonne on the London Metal Exchange, with price gains helped by new data from the National Association of Realtors that showed existing home sales up 3.7 percent in the U.S. in March. Other base metals prices were also higher in London trade. [12] Energy is one of the most significant costs for mining companies, said Mark Johnson, portfolio co-manager for the USAA Precious Metals and Minerals Fund. June crude oil on the New York Mercantile Exchange earlier this month hit $114 a barrel for the first time since August 2008. [36]
NEW DELHI: Silver may have broken a new barrier breaching the Rs 70,000 a kg mark for the first time on Friday, but analysts appear more bullish on gold saying that the yellow metal still has steam left to rise faster. [41] The prices of silver were also up and brokers are looking for profits from silver as well. Analysts believe that the real gold bull market has not yet begun and will not until such time when rates begin to move even higher. [45] Retail prices for 24-carat gold in the UAE reached 180 dirhams per gram for the first time ever, and silver kilo bars surged to 5,347 dirhams. [16]
SEOUL: Riding on a stunning relentless fourth consecutive session rally, silver prices soared to surpass the psychological milestone of Rs 70,000 a kg mark at the domestic bullion bourses here on the back of strong speculative flows and aggressive cornering by seasonal traders. Gold too continued its upward journey to attain new highs on consistent demand from stockists and jewellery makers amidst investment buying. [43] With silver prices rising faster than gold on industrial demand and investment rush by high networth individuals, the traditional gold-silver price ratio of 55:1 has been altered. [41]
Gold and silver continued upward journey to attain new highs on consistent demand from stockists and jewellery makers amidst investment buying. [43]
Precious metals gold and silver moved in positive territory all week and money investment decisions continued to position with the safe haven appeal of gold and silver. [20] Indeed silver is outperforming gold by leaps and bounds. The current "definition move" for silver is by far the most robust and most decisive dash higher for the second most popular precious metal of this bull market. [22]
At'' Milford Pawn, the higher the cost for an ounce of gold, the more cash you'''ll get back for your precious metals, said employee Mark Flanagan. For those with a chest full of gold rings and coins,'' Quinnipiac University�� Professor of Finance Osman Kilic's advice is to '''hold on to your physical goods and think about investing in the future.''' [40] Cautious investors see the precious metals as an investment hedge against an uncertain future. Geopolitical concerns, euro zone debt problems and inflation pressures are the main drivers of their upward trend. [25] Now, as smaller investors become aware that paper dollars are under threat, many are looking towards silver. ''Taken in aggregate, these smaller investors have enormous buying power. Through ETF's and mining stocks they are not bound by government restrictions on holding precious metals in retirement funds. [33] Clark looks for gold stocks to eventually regain the upper hand, particularly when "non-gold types" enter the market on a larger scale. These new investors tend to turn to the metal first, he explained. [36]
Some analysts cited a desire among many investors in the current environment to hold the metal itself as a hedge against geopolitical and economic concerns. This especially the case due to the "immediacy" of owning gold via investments such as coins or exchange-traded funds, Brebner said. [36] Traders actively bought the dollar-denominated gold as the dollar dropped against other major currencies, market analysts said. Lingering inflation fears among investors also fueled gold buying, they added. [30] In today'''s '''high inflationary environment,''' gold offers protection against inflation because you can use it to buy goods, said Kilic. '''It'''s a safe object that you can easily trade,''' he said, adding that it could take a while for investors to build up confidence in the dollar and euro again. '''Gold is more stable in terms of its intrinsic values,''' said Paul Portnoy, vice president of'' The Milford Bank. [40]
"People are buying gold and silver to hedge against inflation and rising oil prices," says Hatchett. "People want hard assets, something they can take home, put in their bank, or pass on to their children." People are also selling their coins and gold jewelry by the bag. Hatchett says, "We've had people bring us coins they have had buried for years." [46] During the 1990's, when inflation was in general much higher than it has been since the turn of the millennium, gold and silver prices drifted lower and stagnated. [33] Since 2000, gold and silver have risen by over 400 and 700 percent respectively. Remarkably, this has occurred over a time frame during which, by most accounts, low inflation has prevailed.'' [33] Gold traditionally benefits from a weak dollar, times of political and economic uncertainty, and periods of rising inflation. [28] Gold has surged in 2011 due to inflation worries, civil unrest in the Middle East and North Africa, sovereign-debt issues in Europe and the U.S., plus a weak U.S. dollar. [36] The list starts with gold buyers' worries about inflation, sparked by the Federal Reserve's unprecedented policy of flooding the U.S. economy with more than a trillion dollars to try to offset the lingering damage from the financial collapse of 2008. [7]
Gold appears to be set to continue the trend of last week since more news regarding higher inflation and a continued weak dollar appear imminent. [17]
August 1972 - The United States devalues the dollar to $38 per ounce of gold. [14] If you use the original, pre-Reagan formula, that accounts for food and gas, then you get about $5500 per ounce for gold at the peak. [24]
The Gold Price in Euros fell to about '''1032 per ounce, unchanged on the week. [47]
The price of silver rallied over 11%, compared to the 1.5% rise in the gold price. [5] If history repeats, we can, once again, make the case that for each point rates rise we could see a 33% corresponding move higher in the gold price. [19] An imminent battle as the entire world works to re-inflate a global economy. When this occurs, the combined effect of rising rates, with any of the stimuli already shown to drive gold prices higher, could be explosive. [19]
Goldman Sachs recently issued a note to clients predicting gold prices will hit $1,690 over the next 12 months. Even if gold keeps climbing, it won't necessarily get there in a straight line, especially after its recent surge. [7] A $10,000 Rolex watch might only contain a few hundred dollars worth of gold, but it'''ll be enough for the watch'''s price to increase. [15] The price of gold hitrecord highs for the sixth session in a row, bolstered by continuing unrest in the Middle East, fears of a sovereign debt crisis in the euro zone and the weak dollar. [32] The usual inverse relationship between the U.S. Dollar and Gold is intact! In times of fear and uncertainty, the safe-haven vehicles may move in tandem. [21] "The key element determining gold's near-term direction right now is the U.S. dollar," according to a Thursday report for clients by Edel Tully, an analyst at UBS AG in London. [2] Prices gained "following the weak U.S. dollar that currently dominates and supports the oil market," said Myrto Sokou, an analyst at Sucden Financial brokers. "It should be noted that crude oil prices have gained almost $5 since the start of the week, showing that the upside rally continues to remain strong despite these uncertain and fragile economic conditions," she added. [27] Platinum gained $19 to $1810.50, and copper gained 6 cents to about $4.40. Crude oil edged higher as the U.S. Dollar index fell to its lowest since mid-2008. [47] The ICE Futures U.S. Dollar Index (USDX®), is the international value of the U.S. dollar and the world's most widely-recognized, publicly-traded currency index. By using the Dollar Index, traders can take advantage of moves in the value of the U.S. dollar relative to a basket of world currencies or can hedge their portfolio of assets against the risk of a move in the U.S. dollar in a single transaction. [21]
Traders that wish to participate in the Gold Futures Markets may look at the E-Mini Gold contracts which have a lower margin requirement than that of the larger Gold contract. Please look for current margins before entering this market and be sure to allow cash cushion for any adverse conditions. Please consult with your broker to calculate the risk, stop loss orders or option strategies before entering such a volatile market. Investors that wish to take a position in the Gold Futures market should devise a plan according to their goals, risk tolerance and the amount of money they are willing to risk in this sector. [21] Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. [35]
Trends stayed fairly consistent during trading that occurred after the Thursday mark as investor attention was weak due to the observed holiday that took place in the U.S. Spot gold and spot silver continued to climb. [6] American retail and institutional interest in gold has surged via exchange-traded funds like the SPDR Gold Trust (NYSE: GLD ), and now Chinese investors are piling into gold via brand-new gold ETFs trading in mainland China. Gold has even wormed its way into the Islamic banking system. [38]
Sep 16-22, 2010 - Gold hits record highs for five successive sessions, peaking at $1,296.10, as investors flock to bullion after the Fed signals it may consider further quantitative easing,. [48] Gold hit $1,509 an ounce on the London Bullion Market, with silver also rising to record a 31-year high of $46.25 an ounce. [27] Today, with gold at around $1,500 an ounce and silver at $45, the ratio has closed to around 33. ''But this is still far higher than the ratio seen in the late 1980's (silver's last mega spike), and if far higher than the natural proportions of gold and silver would suggest. [33]
Coin dealers warn that you should always check the value of your gold or silver piece before you sell it. If you used a silver 50 cent piece to pay for something, you could be missing out on its true value of about $12.50. [46] Be wary of any company that wants to sell you a coin and store it on your behalf. A lot of financial advisers invest only 5 percent of their clients' portfolios in commodities. That's not just gold; that's many commodities: silver, palladium, oil, timber, even my favorite, lean hogs. [24]
When the value of a nation's currency has no clear definition, an economy has no standard for activity or financial instrument to signal mistakes and errors. In Gold: The Once and Future Money, Nathan Lewis writes, '''Because money is information, and the messages sent by the monetary economy dictate in hard, clear terms the actions of billions of people, naturally humans have taken great pains to develop means to keep this information as pure and uncorrupted as possible. If an engineer orders a mechanical shaft of '''500 millimeters,' and the machine shop produces one of 500 millimeters, but due to fluctuation in the meaning of millimeter it is 10 percent shorter than the engineer desired, both the engineer and the machine shop have become unable to cooperate productively. [42] Li Ning, an analyst at Shanghai CIFCO Futures, was quoted in the report saying, "Gold is likely to consolidate around the $1,500 level next week. [4] The key contract hit an intraday high of $1,506.50. Traders continued actively shifting their funds into the gold market, deeming gold as an alternative asset, as the dollar weakened against other major currencies, analysts said. Toward the end of the session, some traders sold gold to lock in profits, they added. [34] The best way to do that might be SPDR's Gold Trust ( GLD ), a 6-year-old exchange-traded fund backed by actual gold bullion bars stored in London. Managed by State Street Global Advisors, it's attracted $56 billion in assets. [24]
James West: In the last 30 days, gold has risen in price by $83.50/oz. Now that it's darting furtively above $1,500/oz., with a clear eye and ambition for the next level-$1,600-a cacophony of know-it-all voices are going to proclaim the imminent end and catastrophic destruction of the gold bubble. This is no bubble. This is the beginning of a global revolution. [26] August 1999 - Gold falls to a low at $251.70 on worries about central banks reducing reserves of gold bullion and mining companies selling gold in forward markets to protect against falling prices. [14] As a result of active '''demonetization''' efforts by the IMF and its member central banks, gold and silver have experienced the type of volatility that has given conservative investors reasons not to perceive the metals as dependable cash alternatives. [33] The correlation between gold and silver remains strong indicating that the two metals will continue moving at the same direction. Economists expect gold and silver to continue moving higher as investors seem reluctant to abandon their safe haven bets. [25]
Gold and silver push higher as some analysts wonder when the ceiling will be reached and a correction in price will occur. It did not happen this past week. Both metals soared. [6] The gold prices has risen some 400% as the gold market reacted to a number of happenings in the market. Analysts say that most people are looking for loans so that they can invest in the market. [45] We have seen gold behave as a commodity, as for a time the gold price rose along with oil. [19] The effects of record high gold prices will soon hit consumers and buyers alike along Connecticut'''s "gold" coast. [15] Gold finally broke out of its range trading pattern last week and the outlook for continued record high prices is bullish. [17] "Trading is expected to be thin today and next week as market participants will be out" due to holidays, according to Tully. "The lack of liquidity means that gold may not be as orderly as it has been this week and we could see large price swings." [2]
Gold's seemingly relentless rise has also become self-reinforcing, as a surge in investor demand tightens supplies and forces prices even higher. [7] Most importantly going forward, the demand for gold and silver by sovereign investors is tantamount. [26]
In terms of industrial demand, silver has unique physical and chemical properties that make it irreplaceable for certain applications. The same is true for gold, to a lesser extent. Yes, there will be a slight deterioration in demand from those sectors, but that is not going to be significant-especially as measured against the increasing demand for capital preservation or speculative strategies. In the case of jewelry, the desirability is enhanced, while the affordability is diminished, by rising prices, and so I think those two factors will balance each other out in that equation. [26] Silver rose by Rs 1,400 a kg to Rs 70,810 in the Mumbai market, while gold price rose marginally to Rs 21,825. [41] Labor costs are also increasing in many nations. "The exposure that you get to the gold price is diluted through the equities because they are seeing that kind of cost inflation," Brebner said. [36] Gold spot rates touching sky after gaining greater than 4.00% or $50.00 during the eight straight sessions due to higher inflation and uncertain global economic situation. [8] Spot gold has surged to a lifetime high, hitting a record for a sixth consecutive session on a weak dollar and factors ranging from geopolitical uncertainty to inflation concerns. [7] There's no doubt gold is a fantastic safe haven when you're fleeing rotten phenomena: stock-market crashes, high inflation and a weakening dollar. [24]
Companies receive payment in U.S. dollars, which is how gold is priced on the global market. When a currency such as Canada's strengthens, the company's expenses rise when translated into U.S. dollar terms, even if those costs held steady in terms of the Canadian dollar. [36] In 1944 when the U.S. dollar was considered '''as good as gold,' it was made the international reserve currency. This unique status is the reason that Fed Chairman Ben Bernanke was recently able to say that, '''The U.S. Government has a technology, called the printing press that allows it to produce as many dollars at it wishes at essentially no cost.''' [33]
Soaring precious metals prices have been driven by what has been the dominant investment theme of the past month ''' persistent weakness in the U.S. dollar. [5] As a result there is an increasing international pressure to remove the U.S. dollar's reserve status. Given that there is no widely accepted alternative to the dollar (the euro has many problems of its own), this is creating fears of an international currency crisis, which has fueled interest in precious metals. [33]
"Overall trade for gold and other precious metals was extremely thin due to the market holiday in the U.S. and UK," said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. [43] The great Gold ]] Gold ]] Gold Bull Market of the 20th Century is said to have started in 1972, just after Richard Nixon announced on August 15, 1971, he was taking the United States off the Gold Standard. At that time Nixon realized foreign countries were hoarding more gold and silver-backed currency than could actually be redeemed by the precious metal's reserves we held. [19]
The Financial Times recently reported that several of Turkey's sharia-compliant banks have begun offering gold deposit accounts, exchange traded funds and even gold-dispensing ATM machines.'' Turkey'''the world's 4th-largest market for gold jewelry'''recently became a net exporter of the yellow metal, as Turks now sell more existing jewelry for scrap than they buy (see Melting Ottoman Gold ). [38]
Now, everyone seems to want in on the business. While it'''s a quick and easy way to make money, you need to remember that it is a business so everyone will pay you a different price depending on their overhead and profit margins. If you have old gold laying around your house, this weekend may be a great time to gather it up and sell it. [49] Shop a variety of stores if you can. Try a pawn shop, jeweler, cash store, gold buyer, coin collector, etc. They may all offer you a different price. I'''ve done two stories on gold shopping, and both times we saw a wide range in prices. [49] The Letter offers a 30-day instant refund period from the first subscription day if readers are not 100% satisfied. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part. The Gold Report does not render general or specific investment advice and does not endorse or recommend the business, products, services or securities of any industry or company mentioned in this report. From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles on the site, may have a long or short position in securities mentioned and may make purchases and/or sales of those securities in the open market or otherwise. [26] The problem comes when you confuse it with investment. These days, many folks can't tell the difference. Plenty of gold bugs concede the metal is not a traditional '''investment,''' per se, but argue passionately that its purpose is not speculative. It is a durable store of value in a world of disposable paper fiat currencies. Unfortunately, the facts simply do not support this view. That's because gold is a great store of value'''except when it's not. [38] Coins used for investment purposes -- American Eagles or Canadian Maple Leafs, for example -- are produced by various national mints and usually weigh about 1 ounce each. The industry that distributes and sells them is fragmented and not well-regulated. What's more, these coins are often sold alongside numismatics -- coins bought and sold by collectors for their rarity or for other reasons. These can have different values and higher markups from dealers. Allow me to quote directly from the written testimony submitted to Congress in September by Scott Carter, vice president of Goldline International Inc. That's the gold dealer that advertises heavily on television and radio. [24]
"Overall, we would not be surprised, therefore, to see gold break through $1,600 (an ounce) before the end of the year," last week's Gold Survey 2011 said. [41] While gold is already at an all time high at $1,507 an ounce, Hatchett believes the recent increase is not over. [46] Gold, on the other hand has risen from $850 an ounce to levels solidly above $1400 an ounce accounting for an annual compounded gain near 26%. [19] CLEVELAND - Gold is continuing to rise, hitting $1500 an ounce this week. That'''s really high, and I'''ve noticed high-end jewelers are now buying gold. [49] Gold rose from $345 an ounce to a June 2006 high of $641.80. That translated to a 23% annualized return. [19] By late Thursday on the London Bullion Market, gold rose to $1,504 an ounce from $1,476.75 on Friday the previous week. [27] March 17, 2008 - Spot gold hits an all-time high of $1,030.80 an ounce. [14]
Note that the GSR is within striking distance of its 1983 low of 32.12 ounces of silver to "buy" one ounce of gold metal. [22] The Gold/Silver ratio, which shows how much silver an ounce of gold can buy, is set to fall for a 9th consecutive session to below 33, a 28-yr low. [23]
"People outside of our industry are starting to look at gold and silver," Clark said. "That's the first place they're going to go. They haven't gone to the stocks yet. Once they do, that is going to be the catalyst, I think, that will push gold and silver stocks up much higher. [36] Gold's popularity transcends nationality, religion and culture ''' and its price has also moved in virtual lockstep with stocks and other '''risk''' assets since the bear market bottom of March 2009. [38] You can buy coins, futures, stock of gold mining companies or funds that invest in gold or gold futures. [24] Just know that many broad-based commodity funds have not done well lately, for a variety of complicated reasons. "We would lean toward an investment in gold today rather than a broad-based commodity basket that invests via the futures market," mutual fund rating service Morningstar wrote last year. Others agree. [24]
With the price of gold futures at an all-time high, the gold jewelry stashed in your house may be worth more now than ever. [40]
Spot gold and spot silver price continued to trend higher during Good Friday. [20] Seriously, the events in the Middle East, the crumbling of Eurozone economies, the relentless depression entrenching itself in the United States and the soaring prices of gold and silver are not unrelated. [26]
If the day ends the way it began, silver will have risen 8.4% for the week, the largest weekly rise in two months. This year alone, silver has gained 51%; gold, in contrast, has added 6% for the year. [4] As gold and silver continue their spectacular rise, The Gold ]] Gold ]] Gold Report checked in with Midas Letter Publisher and Editor James West to get his take on the situation. James, always strongly opinionated, sees this as the beginning of a global revolution that could result in long-term opportunities for gold and silver juniors. In this exclusive interview, James shares some of his top companies to watch. [26] To see a list of recent interviews with industry analysts and commentators, visit our Expert Insights page. DISCLOSURE: 1) Sally Lowder of The Gold Report conducted this interview. She personally and/or her family own shares of the following companies mentioned in this interview: None. 2) The following companies mentioned in the interview are sponsors of The Gold Report: Colossus, Continental, Goldcorp and Prodigy. 3) James West: I personally and/or my family own shares of the following companies mentioned in this interview: Colossus Minerals, Lago Dourado Minerals, Continental Gold, Waymar Resources, CuOro Resources, Seafield Resources, Golden Reign Resources, Corazon Gold, Prodigy Gold, and Newstrike Capital. I personally and/or my family am paid by the following companies mentioned in this interview: None. [26]
The Gold Report: James, we've been discussing the significance of gold's recent push through $1,500/oz., and what it means, beyond the obvious. [26]
November 2005 - Spot gold breaches $500 for the first time since December 1987, when spot hit $502.97. [14] According to the U.S. geological survey silver is about 17.5 times more abundant than gold in the earth's crust. ''This ratio has long been appreciated by civilizations throughout history. [33] "If you have a risk appetite, go for silver. Gold is a safer option at this point of time," says Religare's Manglik. [41] The smaller contracts may allow investors to participate in the Gold Market with less margin. Due to the fluctuations in this market, please consult with your broker, or call us to strategize a risk management plan in line with your personal risk tolerance. [21] The CME Group announced that they are introducing Mini Gold Kilogram contracts to meet the increased interest of investors. [21]
'''On the other hand with a gold wedding ring you'''re stuck with what the market sets,''' Betteridge said, who also owns stores in Palm Beach, Fla., Vail Solaris and Vail Village, Colo. Investors consider gold a safe haven for their money during fiscal and political upheaval. After Standard & Poor'''s downgraded its outlook for U.S. long-term debt from '''stable''' to '''negative''' investors ran to gold in droves. [15] Gold surged Thursday as investors positioned more heavily on investments not as reliant on the U.S. economy. [20]
The bottom line is that gold's bull run is based on weak arguments that don't hold up to scrutiny. Investors might want to follow Warren Buffett's advice and move their attention to attractively priced stocks paying reliable dividends. Or at the very least, avoid the herd mentality that is inflating the gold bubble right now. [38] Depending on the index, gold stocks outperformed gold by roughly four percentage points last year, Clark said. "And now year to date, they are not outperforming gold as a group." [36] Gold goes up and down so much and so fast. This year, stocks are beating gold as an investment. [37]
The portion of gold used for '''investment''' jumped by a factor of 65 from 2000 to 2010 (see Gold: A Bad Investment and Getting Worse ). It's worth mentioning that the last time gold used for investment exceeded gold used for jewelry was 1980'''the year the last gold bubble burst. [38]
People have been hawking gold since before I was born. The price has went up recently, but over the long haul it's not been a good investment. Now that they price has gone up, it's an even worse investment-the party has already happened and you missed it. [24] REDDING, Calif. -- The Gold Mart in Redding says the price of gold is higher than it ever has been, which is drawing more people into their store. [44] The high price also translates into a gold rush of sorts for people consider selling old or unwanted jewelry. [15]
As the trend of increase in gold prices continued in local and international markets, gold price surged by Rs 200 per tola in country on Thursday. [29] Gold coins are currently sold in the Kingdom at SR1,360 per eight grams. He said although the current selling price of gold per gram is SR168, gold jewelry prices could vary depending on design. K. Moidu, manager of Atlas Jewelry, said that most of the gold shops in downtown Riyadh have their own factories in the industrial area in the suburb of the capital. [16] Make sure to ask about any extra shipping and handling fees, too. Jon Locke of Columbia Coin Co. Inc., which has been in business in Portland for more than half a century, says he charges the market spot price for a gold coin plus 7 percent. "If you're going to make a transaction with somebody, you've got to know the individual, their background," said Doug Davis, founder of the Numismatic Crime Information Center. [24] A typical spread on our most common bullion coins (e.g. Canadian Maple Leaf or South African Krugerrand gold coins) may range from approximately 5% to 20% depending on the coin though spreads may increase based upon market conditions, availability and demand. With the exception of the most common 1 oz. bullion coins, Goldline charges clients its numismatic spread, which currently ranges from 30% to 35%, on coins and currency. To earn a profit upon resale to us, your coins, currency or bullion must appreciate sufficiently to overcome this price differential. To illustrate how this spread works, consider the following example. [24]
There are no guarantees that gold prices will keep rising from historic levels. [7] Gold Prices then rallied back higher into the close and ended with a gain of 0.3% on the day, some 1% up for Easter week. [47] We have seen gold prices rise in response to geopolitical unrest, 911 being case in point. [19] "The earnings performance of many of the senior gold-mining companies, or the earnings growth, is lower than what you're getting from the performance of the gold price." [36] For now, though, just about all the forces that have traditionally pushed gold prices higher are in place. [7] For what that's worth at current gold prices, you could buy all ''' not some ''' all of the farmland in the United States. [38]
Gold is a religious statement. The bottom line is that gold and its friends are no longer cheap, but they have a long way ''' in both time and price ''' to run. Until they're done, I suggest you be right and sit tight. [24] I saw the same frenzy ''' from jewelers. Because for consumers buying something, say a yellow gold band, it'''s not something they are purchasing hourly or weekly.''' Yes, he said, it'''s more expensive than it was a year ago, but it'''s no different than other consumer goods. If a couple shopped for wedding bands last year they would notice a price increase. [15] The Utah state legislature has passed a bill setting the stage for gold and silver to be used as legal tender. These actions can best be understood by these words from the Honorable Elijah Muhammad, ''''''when the world went off the gold and silver standard, the financial doom of England and America was sealed.''' The Honorable Elijah Muhammad ''' beginning in the 1930s - described a series of events which began over 6,600 years ago that represent the root of the corruption of this world. [42] This article is a great example of why this country is in so much trouble. The writer tackles a subject that he is totally ignorant about and then seeks counsel from those who are even more ignorant. The dollar will crash, the banks will crash, and those who have silver and gold in their possession will not crash. [24] If you have any of old U.S. silver dollars minted between 1878 and 1935 coin dealers say you've hit the jackpot. "If you had a thousand of them and you paid $1,000 for them in the 60's or 70's, you would get $28,000 for it," says Hatchett. Hatchett adds that bank tellers and store employees are coming in to sell old coins, that the public has passed on to them. [46] The unrest appears almost to be contagion as we have seen varied countries in revolt. The June U.S. Dollar is still technically in sell mode! The high this week had been $76.055 and the low $73.955. [21]
Light holiday trading volume magnified foreign central banks' ongoing diversification of reserves from the U.S. dollar. [13]
October 1999 - Gold reaches a two-year high at $338 after agreement to limit gold sales by 15 European central banks. [14] Gold has always been the reserve asset of choice for central banks and major private investors. [33] Quite a few already have. After watching gold more than quadruple in value, investors might be tempted to wash their hands of financial assets altogether, convert their savings to gold bars, and bury it in their backyards. [38]
Gold has also become a more widely used hedging tool for professional investors, further driving up demand. It's no surprise that Wall Street analysts have jumped on the gold bandwagon lately. [7]
"Gold remains comfortably underpinned with short-term inflation pressures and economic woes triggering some fresh safe-haven inflows," said Andrey Kryuchenkov, commodities analyst at Russian financial group VTB Capital. [27] Instead gold and silver have become known as the asset class to hold as a hedge against inflation. [33] Unlike other metals like copper, which can be used for plumbing and electrical purposes, gold is generally not used in the manufacturing industry, said Portnoy. He said he is not convinced gold has any other value than acting as a hedge to inflation. [40] '''It'''s independent of currency swings; you theoretically will always be able to use it.''' It is not something to build an investment portfolio around, said Portnoy. '''I tell gold has no real value outside of its ability to hedge against inflation,''' he said. [40] Had you become fed up with the inflation of the Jimmy Carter years and moved your savings to gold in 1980, you would have watched your '''store of value''' fall by 70% in the two decades that followed. This would have happened during a period of persistent (though falling) inflation. [38]
Emerging market manufacturers are holding down prices even as currencies lose value. This may explain the strong performance of metals despite seemingly manageable inflation. If higher prices emerge into the light of day (as they already have in commodities), currency uncertainty combined with high inflation should intensify the market for precious metals. [33] High inflation because of strong oil prices, Soviet intervention in Afghanistan and the impact of the Iranian revolution prompt investors to move into the metal. [14] While rates will almost certainly stay put near zero, investors will parse every word of the accompanying policy statement for clues as to what impact the recent uptick in inflation and in commodity prices will have on the direction of monetary policy. [18]
Metal prices have risen even with low inflation expectations. In order to paper over the effects of the financial collapse, central banks around the world are printing as fast as their presses can manage. [33] Consumer inflation as measured by the government's Consumer Price Index remains relatively tame. Rising prices for commodities such as food and oil have added to fears that the Fed's easy-money policy will produce a wave of inflation down the road. [7] Wednesday is shaping up to be the most important day of the week, on a fundamental basis, for commodities, given the two consumer price index releases in the Asian and European sessions, followed by the historically market moving FOMC interest rate decision midway through the North American session. [1]
You should have only a small amount of gold, for insurance. Interest rates are at zero; gold will fall as they rise. [24] The rates of dollar fell on the stock exchange and the Federal Reserve began to raise interest rates to protect the dollar. The prime interest rate was at its lowest level in 12 years at 4.5% the rate of Federal funds was at 5%. [45] Rising debt, falling dollar, default, war, weak housing, stumbling markets and yes. rising interest rates. [19] In pre-emptive fashion, the Federal Reserve began to raise interest rates to protect the dollar. [19]
The Bank of England may also raise interest rates due to inflation pressures. [25]
OregonLive.com Gold may glitter, but as an investment, it carries peril The Oregonian - OregonLive.com Brent Hunsberger, The Oregonian When inflation fears abound, gold returns to favor. [24] Huey says changing cash into gold, helps people avoid inflation. He says it's a move that people take very seriously and that 80% of his job is answering people's questions. [44]
The political factor I've covered, more or less. I would point out that the people of the United States, who are fiercely independent, will replace their own debauched currency with gold and silver with or without the government's participation. [26] The Relative Strength Index (RSI) for gold is hovering near 75, where it has not been since October. This suggests that gold is heavily overbought. Even more indicative is the RSI for spot silver, which is near 89, its highest level since April of 1987. [4] Gold peaked at the end of the week by breaking through the 1500 per troy ounce level. [20] At 1:31 p.m. silver futures were up 3.78 percent, a $1.679 climb to $46.14 per troy ounce. [3] Following the skyline, spot silver achieved $46.69 per ounce, the highest level since 1980, and surged 8.40% for the week, which was the biggest weekly gain in two months. [8] Silver spiked up $1.12 to $47.71 per ounce and is closing in on the $50 level that was achieved only once in history in January 1980 when the Hunt Brothers attempted to corner the silver market.'' [18]
Silver has now closed higher for a remarkable eleven of the past twelve weeks, hitting yet another 31-year high Friday morning at $47.71 per ounce. [5]
Omeloch says at the time, the price reached $990 per ounce, which in today's money would be about $2,500. [10]
Li believes that the price will peak by the end of the second quarter at around $1,550, driven by persistent worries over world troubles. Barry Schwartz, vice president and portfolio manager at Toronto-based wealth manager Baskin Financial Services, was cited in the report as believing that the market may have reached its peak and that now is the time to sell while buyers can still be found. [4]
For the second time on Thursday morning, gold futures set all-time highs, Bloomberg reports. [3] Futures for June delivery on Thursday touched a record $1,509.60 on the Comex in New York. The most-active contract has posted a record 10 times this month. [43] To live to trade another day! The use of options with futures positions and/or option strategies may again keep the risk at a specific level. Now we may find the market potentially could climb to $1536.00 or much higher this or next year. [21]
December 2003-January 2004 - Gold breaks above $400, reaching levels last traded in 1988. [14] Gold breaks above $1,500, oil gains - Commodities - Zawya The Javascript on your browser has been disabled or restricted. You may not be able to view this site correctly. [27]
The problem with gold is that it'''s hard to know the value of your gold because there are a lot of factors like weight and whether it'''s 12k or 14k, etc. There'''s a mathematical calculation you can figure out to see if you'''re getting a fair price. [49] "Items of gold jewelry are made according to the specifications of customers." Therefore, he added, they have different prices according to the design despite the fact that their weight remains the same from one jewelry item to another. Citing reasons for the rush in gold shops, a salesman said: "Buyers are coming to the shops anticipating a further rise in prices in the coming weeks, while the sellers want to make money out of the old jewelry they have bought earlier at a cheaper price." [16] Gold continues to rise even amid a rapidly recovering stock market. Those two markets don't often move in tandem. [24] Frankly, I cannot fathom a worse idea. Gold today is as risky as tech stock in 1999 and Miami condos in 2005, and the arguments supporting its rise are every bit as flimsy. Let's take a look at some of these arguments and how they stand up to a brief reality check. [38]
Holdings of the largest, the SPDR Gold Trust, rise 45 percent to 1,127.44 tonnes. [14] Contract gold for June delivery finished the last session higher by.64 percent at 1503.80 an ounce. [20] Speaking of Russiaand gold The central bank of the Russian Federation reported their March gold purchases yesterdayand they bought 600,000 ounceswhich brings their '''official''' holdings up to 26.1 million ounces. [39] And, instead of buying gold and silver in physical form that will only sit idle in your bank locker, systematic investment plans (SIPs) are a better option. [41] "Silver continues to attract huge speculative interest. Even though silver is outperforming gold, the genesis of this rally is still related to the flight-to-safety factors supporting gold." [3] The Weekly Gold Digger is a Free Weekly subscription to receive trading opportunities by email along with fundamental commentary and basic technical points of interest. [21] Gold pays no dividends or interest and produces nothing. It's an inert metal that you have to pay to store and insure. [38] Gold's sister precious metal is set to finish higher for the fifth consecutive week. [18] The meteoric rise in silver clearly indicates the nature of speculation as it gained a hefty Rs 23,600 or 50% since the beginning of the current calendar year. The precious metals continued its uninterrupted rally in international markets on mounting supportive factors like accelerating inflationary pressure as well as spreading weakness in the dollar valuations including ongoing geopolitical uncertainty. [43] Silver gained 74.6% hitting a 31 year high at 46.05 dollars an ounce from 26.38 since the start of the new year. [25]
Silver is also approaching an all time high. Right now it's priced at $46.68 an ounce. [46] The price of an ounce of the shiny metal hit $850 in January 1980, before crashing below $500 just three months later. [7] BASE METALS: Industrial metals prices were mixed as "the initial knee-jerk reaction towards the S&P; downgrade" gave way "to more measured optimism alongside further strength in U.S. macro data and a weaker dollar," said Barclays Capital analyst Gayle Berry. [27] In fact the dramatic change in the ratio is one of the reasons why analysts predict a moderation in silver prices. Analysts say that given the possibility of a further rise in prices, you must have both the metals in your portfolio. [41] While many analysts and traders said that a correction could be in store soon, calling the precious metal overbought, others say that there is still steam to power the ascent higher: after all, the worries that drove prices up have not abated. [4] The price of the two precious metals ''' seen as safe havens during uncertain times ''' have seen a sharp surge over the last 12 months as the American and the European economies remain wobbly. [41] The precious metals ''' often havens in times of risk aversion ''' outperformed in spite of resurgent risk appetite in global markets that lifted equities and industrial commodities. [50]
Carter was in D.C. in September to argue against a bill to require better disclosures around coins and precious metals. "Do not commit more than 5 percent to 20 percent of your investment funds to rare coins or precious metals," he said. I'm not sure his commissioned salespeople volunteer that advice to prospective clients. They'll tell you not to commit more than 5 percent. If you want to buy a coin, shop around in person at established, local dealers who gladly disclose their markups, or profit margins. [24] The value of the precious metal has surged more than 31 percent during the past 12 months. [35]
'''The '''We Buy Gold''' people will give you maybe seven-tenths of the market value,''' Betteridge said. Both Betteridge and Roseman said they pay sellers market value. Roseman said David Harvey Jewelers accepts gold in payment for things such as watch repairs. '''We'''ll pay 100 percent the value of the gold,''' he said. [15] The dollar remained lower versus a handful of other currencies and the inverse relationship often observed between gold and dollar value was evident to end the week. [20] Removing us from the gold standard did not come without an anticipated backlash. As the dollar was no longer backed by tangible assets, its value in the world markets was sure to decline and it did. [19]
Unlike gold, the '''anti dollar''' can be used to maximize other investments. I'''ll reveal this currency in a moment. We'''re a bit foggy-headed this morning, Fellow Reckoner. [39] One of the persons responsible for taking America off of the gold standard (which happened in stages) was French President Georges Pompidou, the former Director General of the Rothschild Bank in Paris. It was he, and not President Richard Nixon who negotiated a key devaluation of the dollar relative to gold with Henry Kissinger in December of 1971. While they negotiated, President Nixon listened to a football game on the radio. The greatest economic undertaking in the history of this world is the trans-Atlantic slave trade. [42]
The Standard & Poor's downgrade of the U.S. announcement was just the ticket to boost the Gold Market to new highs. [21] Kryuchenkov said that gold "shot up after S&P; downgraded the U.S. sovereign debt outlook to negative. [27] The Fed has kept the benchmark rate between zero percent and 0.25% since December 2008 and pledged to purchase $600 billion in Treasuries through June to stimulate the economy. Standard & Poor's this week revised its debt outlook for the U.S. to negative from stable. [43] The latest spurt has been fuelled by rating agency Standard & Poor's downgrade of U.S. debt, which rattled global investor confidence and weakened the dollar further. [41] Today, with the Federal Reserve treating the greenback as a never ending lottery ticket for deficit spending politicians, many investors feel the U.S. dollar is good for nothing. [33] These efforts in one way or another are reactions to the corrupt policies of the Federal Reserve which have devalued the U.S. dollar and dramatically increased the American debt, now approaching 15 trillion dollars. [42] The Federal Reserve has become the slave master who ensures the bondage of humanity to the foul and putrid U.S. dollar. It is now, more than ever, the enemy of the American people, and by extension, the rest of humanity. [26]
After a decade in which stocks went nowhere and the U.S. dollar lost value to every world currency except the Zimbabwean dollar, many Americans are ready to give up on the entire system. [38] Upbeat U.S. and European corporate earnings propelled world stocks to a 33-month high. Several U.S. bellwether stocks jumped after strong earnings but many of those companies have significant sales outside the U.S., which is showing signs of slowing again due to weak job growth and rising oil prices. [13] Oil prices turned negative in London after surprisingly weak data on U.S. jobs and regional manufacturing stoked worries over energy demand. [13] Oil prices have made solid gains since slumping at the start of the week on the S&P; U.S. outlook downgrade. They were also hit as key industry bodies expressed concern about the impact of high energy costs on demand. [27]
"The market is getting more jittery now that we have sovereign-debt concerns about the U.S. in addition to Europe and the Middle East problems, which increasingly boosts safe-haven demand for gold." [35] Gold buyers have also been spooked by a series of events that are well beyond the control of the architects of U.S. monetary policy. "Gold's attractiveness as a safe haven has been reinforced by destabilizing events such as the euro-zone's rolling fiscal crisis, the earthquake off the coast of Japan and political upheaval in North Africa," according to Capital Economics analysts John Higgins and Ross Strachan. [7] Shares of gold producers have outperformed gold itself for much of the bull run that began around a decade ago, said Jeff Clark, precious-metals analyst with Casey Research. Up through 2007, this often occurred at a rate of three or four to one, he said. [36]
Since it last peaked in 1980, gold has become easier and cheaper to acquire. Individuals ''' who once faced the prospect of stashing away gold coins under their mattress or paying a dealer to store their gold bars ''' can now buy exchange traded funds that offer shares backed by physical gold. [7] Financial advisers do, obviously. Buy gold coins and hold them. Listen to no one that tells you otherwise as they always have a motive for their advice that will benefit themselves. [24]
The 2011 Gold Rush is on, with gold reaching record levels on what seems to be a nightly occasion. [39] Oil, in turn, soared to record high levels becoming more expensive and increasing the risk for global price instability. [25] Islamabad'Gold price in Pakistan has surged to a record high of Rs 47,500 per tola (11.665 grams) due to the price hike in the international market. [29]
New U.S. data meantime showed a drop in house prices, larger than foreast Initial Jobless Claims for last week, plus a weak reading on the Phily Fed index. [47] Acuity Stockbrokers Research Ltd in their Market Review indicated that the week ended in the red as the 4 day trading week closed with both indices losing 1.56% and 1.66% respectively, with All Share Price Index ( ASPI) down by 118.04 points and Milanka Price Index ( MPI) shedding 117.14, as against last week'''s position. [51] The metal tracking board was blanketed in a hue of green to close out the last trading session of the week in the U.S. on Thursday. This past trading week was only four days long as Friday was an observed holiday and the markets in the U.S. were closed. [20]
Analysts offered mixed views on whether mining stocks will continue to underperform the metal itself. "I don't see any convincing reason at this stage why that trend will reverse," Brebner said. "I think it's likely to continue over the next couple of years and actually it may worsen, if there is a growing desire for investors to get their hands on metal. That may exacerbate the underperformance of mining companies versus the commodity." [36] Seasoned investors who have weathered the downturns know that the best time to go shopping for stocks is when the rest of the market is paralyzed with fear. That is the case now, and so I'm picking up companies that have the greatest potential for rapid appreciation when the rest of the herd clues in and understands that the world isn't going anywhere. [26]
Investors are saying to hold on to your silver a little longer, because that price is supposed to keep climbing up. [31] The steep price rise of the past year leaves little doubt that investor psychology is playing a major role. [7]
The raging bull market in gold since 2000 can hardly be considered '''stable.''' Sure, no one complains if their purchasing power rises. If your stated purpose in buying gold is its role as a store of value, even volatility to the upside should be unsettling. [38] Bill Hatchett owns A-Coin on the southside, and has been dealing in coins for 32 years. He says business is good right now because more people are afraid the U-S dollar will dive in value. [46] Yesterday, I told you that Apple would report their first quarter earnings Wednesday night, and well, let'''s just go to the tape and pull that comment from yesterday'''s Pfennig, shall we? I said, '''After the market closes, Apple will announce first quarter earnings If the '''risk sentiment''' is to remain, and continue to put pressure on the dollar, Apple'''s earnings will need to be strong.''' A chartist friend of mine sent me this note '''Dollar index off about 1% overnight. [39] The dollar index is down again, so the inflation factor is creeping into the market," Bill O'Neill, partner of commodity firm LOGIC Advisers, told Reuters. [3]
Treasury bonds fell back after a record sale of $14 billion in new five-year inflation-indexed securities, which drew a negative yield - suggesting stronger inflation expectations amongst buyers - for a second straight offering. [47] The inflation calculation in this article is based on the 2 times revised inflation formula results in a peak of $2300. [24]
The Crude Oil on the New York Mercantile will be increased by 0.82% in June, which means it will be delivered at $109.10 per barrel at 0602. [45] On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for June stood at $111.71 compared with $108.42 for the May contract. [27] The chart just below was as of the New York close yesterday, $45.22 on the Cash Market. [22] In New York on the NYBOT-ICE, cocoa for July slipped to $3,084 a tonne from $3,130. [27]
COFFEE: Coffee prices struck 34-year highs at 300 cents a pound in New York on tight supplies, while futures fell in London. [27] Stocks, bonds, real estate, and even livestock and productive machinery would all qualify. This is in contrast to '''speculation,''' which is a purchase based purely on the hope of selling at a higher price at some point in the future. [38] Ben Graham, the mentor of Warren Buffett and father of the investment profession as we know it today, had referred to speculation as the '''greater fool''' theory. The idea goes, '''I know I am a fool to pay such a high price for a stock but I know that a greater fool will come along and pay me an even higher price.''' [38]
While debt contagion fears heighten, the European Central Bank (ECB) is battling to control rising price levels. [25] Euro zone debt problems continue to be a catalyst for the precious metal rally. [25] In the past few weeks the number of people selling silver coins alone has gone up drastically. The owner of Christopher's says most people are selling their old jewelry because of the poor economy and they are in need of extra cash. "It seems like with everything else, with the economy, and the national debt, there is a lot of countries that are in pretty poor shape financially and its getting worse. [31]
If the spread on a coin is 35% and Goldline's ask/sell price is $500 for the coin, then Goldline'''s bid/buy price is $325. [24] Oil jumped another $2 overnight, thus propelling the Canadian dollar, Norwegian krone ( NOK ), UK pound ( GBP ), Mexican peso ( MXN ), and Russian ruble higher versus the dollar. [39] I see absolutely no signs of any type of widespread leveraged buying of silver. That tells me we have much further to go in silver investment. To recap The currencies and metals took the dollar to the woodshed again last night, after holding on to their gains yesterday. [39] There also has been an underperformance by silver stocks as silver rocketed to 31-year highs, said Daniel Brebner, head of metals research at Deutsche Bank. [36]
May contract silver finished the session higher by 3.59 percent at 46.06 per troy ounce. [20] May copper was also higher on the session, adding 6 cents to $4.40 per pound, but it was down 2.2 percent from where it started the week. [11]
Adjusted for inflation, it has yet to recover that peak price. Reuters contributed to this report. [7] OPEC secretary general Abdullah El-Badri said the cartel was "concerned" by high oil prices while the head of the International Energy Agency, Nobua Tanaka, said "very high" levels may undermine economic growth and demand. [27] Fundamentals trump technicals, and if prices remains higher, I would conjecture that the prices are normalizing at the current rate, and thus can be expected to move higher as a significant level of support is forming following the brief correction that occurred last week. [1] You can check the going price on Kitco before you leave home so you know the going rate and whether it'''s on the rise or decline. [49]
Because the price of jewelry rising just in time for Mother'''s Day, graduations, and June weddings. [15]
There'''s a currency I think of as the '''anti-dollar''' that continues to appreciate against the U.S. dollar. [39] The U.S. Dollar sank this week as Standard & Poor's cautioned a downgrade for the U.S. from AAA to negative. [21] Clearly the U.S. Dollar is under heavy pressure as the world seems eager to trade Dollars for just about anything else at the moment. [22]
SOURCES
1. Forex @ DailyFX - Gold Outlook Bullish on Weaker Dollar, Continued Geopolitical Concerns
2. Gold futures notch highs as dollar plunges | Daniels Trading
3. Gold futures drive to record high for second time on Thursday | Daniels Trading
4. Gold, Silver Hit New Lofty Peaks | Advisor One
5. Gold Price Hits $1,512, Higher for Third Straight Week | GoldAlert
6. Contract gold and silver Spot gold and Silver Prices Per kilo, Ounce, Gram rates; Money Invest Notes Precious Metals Contract Gold and Silver : Learning and Finance
7. Fear, uncertainty driving gold rush - Business - Eye on the Economy - Stocks & economy - msnbc.com
8. Gold Rates Going Sky High in the Asian Trade « USA Market News
9. Dots Press » Gold High Stake for Investors
10. Price of gold reaches record high, local exchange shops doing good business | www.WHEC.com
11. Gold prices end near $1,504 per ounce in New York trade
12. Gold prices continue to climb in New York trade
13. Gold posts fresh life-time high, silver at 31-year peak - Business LIVE
14. Factbox: Gold milestones on the road to record high | Reuters
15. Gold Rush - Greenwich, CT Patch
16. Gold tops $1,500 an ounce
17. Weak dollar and geopolitical unrest good for gold | Indie Pro Pub
18. Silver Bolts Toward $50, Gold Hits Another Record | GoldAlert
19. Will Rising Rates Skyrocket the Gold Price? History says YES! - Gold Matters
20. Gold and Silver Price Per Ounce, Kilo, Gram Rise; Gold and Silver Market Benefits; Gold Silver Demand High; Dollar Worth Less : Learning and Finance
21. Inside Futures: Relevant trading-focused information authored by key players in the futures, options and forex industries
22. Gold-Silver Ratio Approaching Lows | Gold News
23. Gold Trades at New High - Commodities & Futures
24. Gold may glitter, but as an investment, it carries peril | OregonLive.com
25. Uncertainty lifts gold and silver to record highs - Forex
26. James West: What's with $1,500 Gold and $42 Silver? - Commodities & Futures
27. Gold breaks above $1,500, oil gains - Commodities - Zawya
28. Record High Gold Prices in India Attracts Investors -- NTDTV.com
29. Gold jumps to 46350 per tola
30. N.Y. gold futures continue hitting fresh highs, end above $1,500
31. Gold, Silver Prices Keep Metro Jewelers Busy - ABC5 WOI-DT News, Weather, Sports in Des Moines, IA
32. Gold price soars to record high again - Business News, Business - The Independent
33. Silver Set to Soar as Paper Folds? | Benzinga.com
34. N.Y. gold futures continue hitting fresh highs
35. Gold futures again notch highs | Daniels Trading
36. Gold-Mining Shares Lag During Gold's Recent Run To Record Highs - NASDAQ.com
37. The price of gold soars while the value of the U.S. dollar sinks | wcsh6.com
38. 3 Myths That Will Pop the Gold Bubble | Benzinga.com
39. Dollar Continues to Fall Against Currencies and Commodities
40. Gold Rush: Record High Price Could Pay Off - North Branford, CT Patch
41. Silver breaches 70k mark, but gold's still a safer bet - The Times of India
42. Corruption and a Return to Gold and Silver
43. Gold, Silver prices surge to all-time high on global lead - The Economic Times
44. Local Gold Store Busy As Price Goes Up - News Story - KRCR Redding
45. Gold Hits Record Price | French Tribune
46. Gold and Silver Prices Rise Over Fear | firstcoastnews.com
47. Gold Ends Easter Week 1% Higher, Silver Jumps 8% | Gold News
48. Golden milestones
49. Unused gold jewelry can net you big bucks as it hits $1,500 an ounce
50. FT.com / Commodities - Gold and silver set new highs after'''S&P;'''move
51. Latest Stories | Asian Tribune
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