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One might think there was a big war or major crash coming. Oh well, wars and crashes happen all the time. And gold just keeps sitting there. It might not gain any interest or have fancy paper appreciation but it sure does store wealth in hard times.
Of course the smart money says, "it's different this time." Those are the four most dangerous words in the English language -- it's different this time. Gramps used to hear it all the time in the 20's.
Those darn Asians and Islamics. What are they trying to do -- ruin us all?
HG
But inflation is still low, and the depreciation of the yen should not impact the value of gold, as denominated in dollars. Personally, I think it's more the case of investors not being satisfied with the meager gains on the stock market, and being afraid to put more money into real estate. Gold is the only thing left, but I predict that gold will ultimately demonstrate that it's not a safe haven either.
Do you know the North Koreans were printing US currency?
I believe the FED has decided to stop releasing money supply figures which are presumed to be way over the top. Inflation is a direct result of to many dollars in the economy. Gold is a hedge against printing money (inflation) and I belive this is the cause for the run-up.
My father had a friend who put all his money into gold in the late 1970s. I think it cost him something like $800 per ounce.
Great store of value.
'Those darn Asians and Islamics. What are they trying to do -- ruin us all?'
Probably. The islamics esp would like nothing more than to ruin the U.S.
Gold is a GREAT investment. If I had invested all my money in Gold when I first graduated from High School over 25 years ago, by now I would have ----
Less money than I had when I graduated High School.
(Gold was over $800 an ounce back then).
BTW, My HOUSE has appreciated in value MORE than gold in the last 5 years. So I guess you could have bought gold, but you would have been better buying your neighbor's house.
Look for the "smart guys" to get out shortly leaving the novices, who actually believe this or any other market only goes up, holding the bag. The huge spike up in the past several weeks is imo, the last surge before the bottom falls out.
Buying and selling precious metals, like sex, is all about timing.
Back in the '70s I read a great book by Harry Browne with the numbing title "How you can profit from the coming devaluation". I was on vacation and stayed up until 3 a.m. reading it. The guy was spot on. Before I got back from vacation, there was a devaluation. (Devaluation is the government euphenism for bankrupcy - as in a 50% devaluation in effect says the country is bankrupt and will pay off debtors at the rate of half what is owed them.)
Remember the "dual rate" of LBJ? The govt said gold was worth $44 an ounce, but wouldn't redeem any dollars in that (foreign govts could still demand conversion - LBJ talked them into taking silver instead at 95c an ounce, all the while exhorting people not to hoard silver - Gresham's Law* proved once again.). The free market immediately went to $48, when I bought in.
I bailed at $105 an ounce, kissing my hands at what a smart speculator I was - it CAN'T POSSIBLY go any higher. Got back in at $125 and stayed until $525 when I figured that was absolutely the tops. Jesu, what a ride!
Out of all that, what sticks in my mind was walking into a coin shop with $52 face value silver coins and walking out with $1004. Talk about being stunned!
A long time ago, a wise man said that gold was the thermometer of the world's condition, so maybe these Asians know something we don't.
*Bad money drives out the good. If you have two coins, one intrinsically worth more than the other but of equal buying power, which would you keep?
Gold is rebounding from a long period of being in the dumps. Gold should be at $750 or so. Doesn't mean there will be major crashes in the economy.
It's not so much when they happen, but where they happen. The threatened immolation of Israel might be a little closer to home than an instability in Sudan.
Sure, let's go back to a gold base stock market as well, then we can replicate the stock market crash.
for the record, by 10:00 est the price exceede 530 on the NY market
Jeeesh! Then what's the solution? Go out and purchase some gold at $522 per? Gold is Gold is Gold and will only be worth something when it all falls apart. Only, in order to keep that gold (if you bought some) would have to be with gunsteel and some lead.....
Better hurry up and buy, people! You'll have time to sell when it goes back down to $300!
I don't know what gold opened at but it closed at 527.00. So much for selling into the east.
almost had a heart attack when I misread the title as "oil surge past $522 level"