Posted on 12/09/2005 6:01:51 AM PST by DebtAndDelusion
The price of gold has continued to rise in Asian trading, climbing to its highest level since 1981. Gains came despite concerns that the market may be set for a correction and some analysts are now predicting that prices have even higher to go.
Precious metals have been given a boost as investors look to protect themselves against higher inflation and weakening currencies such as the Japanese yen.
Gold climbed as high as $522.70 an ounce, before falling back.
It was hovering around the $521 mark during afternoon trading in Asia.
'Dizzy high'
"There's some profit-taking now, but look at where we are," said Darren Heathcote of NM Rothschild.
"It's broken $520, the target we had yesterday... and it looks like $525 is the next target."
One broker in Tokyo said that: "Gold has been drawing very strong interest from Japanese investors, and I don't think this boom will subside in the near term."
There are a number of factors pushing the price of gold higher.
Gold is seen as a haven from inflation and weakening currencies, although historically, once inflation is taken into account, gold has not proven to be a good investment.
There is also speculation that Asian and European central banks may cut US dollar holdings in favour of gold.
There also is the year-end increase in demand for jewellery, analysts said.
The price of gold has climbed almost 19% this year and has nearly doubled during the past five.
"It's a dizzy high," said Rothschild's Mr Heathcote, but warned that "we are looking at a very overbought market".
"We're looking for a correction. It has to come at some point," he said.
I am questioning where the bank gets the second $100 to give to you. It only had $100 in cash and that was already lent out. It doesn't have another $100 to give you. I understand that the process you describe is what happens everyday, but I would suggest that the process is NOT understood and is only approved by the population because they don't know what is really happening and it CERTAINLY doesn't make it moral. It works today because all banks are part of the system and can legally create new money like this out of the blue. When specie was money, they ability to just print more didn't exist and that is what the bank runs and panics were all about.
Oh come off it. You trying to say nobody who's ever seen "It's a Wonderful Life" was able to understand why the Bailey Savings and Loan didn't have enough money to give every single depositor his savings in cash all on the same day, you think everyone was rooting for Potter and that the consensus was that the George Bailey ideal was not moral?
Sure I do-- we got a wild allegory down in the river here that damn near bit my leg off, but that's not important now. You just tell me why it is that my total family net worth in my post 213 is not good enough for allegory bait, but your total debt burden in your post 211 is?
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Except of course that gold you own will double it's value by the time you liquidate it but all of the value of every single one of everyone else's (non-gold) assets will never ever ever be realized even though the future interest won't go down (unless of course I'm receiving it which case it'll go down when it goes up) but none of this will ever matter if new wealth is created because the new wealth will never have any value when it's sold either not to mention that all is lost and there's no hope because if we didn't have bad luck we'd have no luck at all and if we didn't get junk mail then nobody would write to us. ooooohhh woe is meeeeeeee
"Please, explain what causes inflation, if you know."
The growth of money in excess of the growth of products and services. Now go away you clown.
Wow, that only took you a month. So, growth of money less than the growth of products and services causes deflation?
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