Gold futures resume climb after factory orders ($1,079 per ounce now)

Market Watch ^ | 11/03/09 | Nick Godt & Polya Lesova

[TigerLikesRooster]

Gold futures resume climb after factory orders

India central bank buys give an early lift; dollar in play

By Nick Godt & Polya Lesova, MarketWatch

NEW YORK (MarketWatch) -- Gold futures got back their earlier gains Tuesday after a report showed the U.S. factory sector has continued to rebound, knocking the U.S. dollar further off its session highs.

Gold for December delivery rose $23, or 2.2%, to $1,077 an ounce in electronic trading on Globex. Silver and copper futures turned higher.

Gold had traded under $1,060 ahead of the factory orders report, coming off highs near $1,067 in European trading. That earlier rise was buoyed by news India's central bank has bought 200 metric tons of the precious metal from the International Monetary Fund.

[TigerLikesRooster]

Ping!

[TigerLikesRooster]

[mnehring]

I’m sure India’s six million ounce purchase yesterday is also boosting prices.

[annieokie]

THe next bubble to burst, why do people fall for this stuff? Amazing.

Back in the 80's, I saw people purchase jewelry on the premise it would be more valuable, dumb idiots, and I told them so.

[TigerLikesRooster]

People said the same thing when it was $500 per ounce or even less, while stocks will even go up higher than 14,000. Always talk about 80’s. Good for nothing, yada yada. This is not 80’s and dollar's value is in serious jeopardy. What would you think all those debts Zero is creating will do to dollars?
High inflation or dollar collapse are likely.

[annieokie]

""""Always talk about 80’s. Good for nothing, yada yada."""".......

What goes around comes around again and again, because people do not learn anything from the past. It is cyclical only because people do not see and read the signs of an inflationary market, such as the housing BOOM. Yikes.

My point on the jewelry purchases, that is a foolish investment then or now. Gold when it was at $200 to $500 per oz. was ok to purchase, NOT at the prices now. It is overdue for a fall.

I personally invest only in real estate, it is not going anywhere, no one can steal it, I am in complete control. I have played the stock market some, just not savy enough to do that, as I have no control of it. Go ahead and invest, just don't whine when it falls, I have learned you can't play with the big boys, the odds are with them. P.T. Barnum had a point.

[TigerLikesRooster]

There will be a time for people to overshoot, or gold price now can drop by 50 dollars for next few week. However, I don't see this is anything like mindless real estate bubble of the recent past. Not there yet as long as debt is growing a few trillion a year. Was it the case in 80's? Debt growing at such alarming pace?

Real estate may not going anywhere, but if may not rise to the previous level for a long long time. Unless you count on high inflation. Then nominally, it could go as high as you want. On the other hand, your toaster bread may cost as much by then.

[annieokie]

Differant Strokes for differant folks.

My properties remain steady and the best investment for the poo folks like me, purchased them in mid 90's after the last housing bust/oil bust.

I don't purchase anything for short term. When everything else has busted, my rentals just keep going on and on and on. Values of properties are up from time of purchase, stagnant now, but will rise again, cyclical.

Just be cautious, otherwise I would just play the slot machines, same results and more fun.

[demsux]

Check out what gold did during the second year of Jimmah Carters administration.

That's why I'm in gold.

[TigerLikesRooster]

Differant Strokes for differant folks.

You claim different situation for you, which I cannot verify one way or another. On the other hand, you dismiss major change of economic fundamentals, which is well-documented and can be verified, and claiming that it is no different from 80's. You didn't give an answer about the debt growth situation then and now. You just changed topic to slot machine. Is that what you do all the time?

[TigerLikesRooster]

Gold now at 1,085.

[razorback-bert]

I remember all the scorn heaped on me here, for buying gold at $265.

I was/am not a goldbug, I just thought it was underpriced them.

I am tilting to gold being underpriced again.

[annieokie]

"Differant Strokes for differant folks.", I say it again. I simply do not follow the major changes in the economics, my stradegy for my own investments have nothing to do with what is going on the the other markets. Simple as that.

I purchased properties, it did not make any differance to me what was happening elsewhere. I knew my market, and I am old enough to know what real estate will do in the long run. My properties have always doubled in 15 to 20 years and I reaped monthly dividends in the way of rents. Can't beat that.

Playing the slot machines???? lol. If I do, it is only because it is fun, if I don't,it is because I am smarter than that, kinda of a meaningless jab there. It was only used by me as a way of saying purchaseing things when they are on the rise or topping out is as foolish as playing the slot machines.

Real Estate is the only way for a poor man to win, and it is not doing it the way you see on those TV infomercials.

[Razzz42]

RE needs to correct a further 20%-30%. Fine if you are collecting rents but don’t expect to draw a credit line from it.

Gold if nothing else is an indicator. Indicating confidence in the US dollar is failing. Holding 20%-30% of your net worth in gold will cover the lack of the US dollar’s buying power. In other words, gold value will cover the lack of dollar value. It’s always been that way. Unload gold after currencies stabilize.......about 10 years from now.

[dennisw]

The USD was up today.
Gold rose under its own power
You can go here to find out what part of golds rise or fall is attributable to USD rise or fall
http://www.kitco.com/

[brydic1]

With the Indian Government spending Billions of US Dollars that they had been holding in their Reserves in order to purchase one-half of all the Gold held by the IMF (two tons) at the rate of $1045 per oz speaks volumes about the continuing loss of value of the US Currency. Those who think otherwise are burying their heads in the sand.

[dennisw]

Lol You “embedded” the live Kitco gold chart

[dennisw]

The purchase of nearly half of the 403.3 metric tons of gold earmarked for sale by the IMF boosted spot gold in Asia, reminding investors that central bank reserve diversification will continue to fuel demand for the yellow metal in the open market.
http://online.wsj.com/article/SB125722876971624729.html

IMF still has more gold it wants to unload. China just might be the next bulk buyer. The old world order (USA Europe via the IMF) is selling off its gold to the young upstarts.... The vigorous nations. Not that I like it since I live here

[brydic1]

I misstated when I wrote 2 tons it was as you stated 200 tons. I am curious how many troy oz in a metric ton. Must be a huge figure. If the Indians had been unable to purchase from the IMF and had instead tried to buy on the open market, where would the price of gold be today. I also seem to remember that IMF Gold is partially owned by the US and requires consent of the US Government to sell same. If true, did this corrupt US administration authorize this sale? Also I wonder if now that the Indians have officially purchased gold at $1045 per oz. does that maybe put a new floor on the price of gold?

[qam1]

I am curious how many troy oz in a metric ton.

32,150

So at 200 metric tones they brought 6,430,000 troy ozs

At $6.7 Billion that's about $1042 per Troy Oz

[djf]

Exactly right. Gold is the canary in the coal mine. The price of gold is absolutely related to confidence in the dollar.

People can say whatever they want “Can’t eat it.... yada yada blah blah” but there is no escaping this fact.

[Diana in Wisconsin]

Trying NOT to get overly excited...but my planning and patience just might be making my dreams come true! :)

[blam]

It’s just a matter of time, eh?