Gold Futures Take Flight Over the proposed E.U. Bailout of Greece

OilPrice.com ^ | 03/29/2010 | david Forest

[bananaman22]

The action in gold on Friday was notable.

Spot gold jumped over $5. And the rally has continued this morning, with gold now back above $1,110 for the first time in over a week.

The jump appears to have been driven by concerns over an proposed E.U. bailout of Greece, as well as political fears after the sinking of a South Korean ship near the border with North Korea.

Here's what's more interesting. Gold futures took flight on Friday. To a much greater degree than the spot price.

Gold Price (Front month – 6 month out) - Chart

Spreads on the front-month contract leaped from $0.60 to $13.30. And the trend continued across the futures board. The six-month future spread gained from $4 to $18.10. Full article at: Gold Futures

[bunkerhill7]

Find a gold mine

[savedbygrace]

I have a large payment due next month, and about 7 months ago, I decided to take the money I had saved for it and buy gold and silver rather than stick it in a boring bank savings account earning less than 2% APR.

It was a gamble, with me betting the gold and silver would earn at least 2% after selling it back to the dealer.

At the present time, it looks like I will have won the bet, but not by much.

Hey, it’s been an exciting ride, as long as it doesn’t go much lower (and it appears to be going up). I think I’ll sell soon. Or, ride a little longer by charging that payment to my MasterCard and paying that off in another 30 days or so with the proceeds from selling the gold and silver in late May or early June.

Nah, I’ll probably sell soon. (I tease myself like this a lot. It’s exciting . . . and it’s only money.)