Posted on 12/12/2005 11:44:40 AM PST by DebtAndDelusion
Gold prices rose Monday, hitting fresh 24-year highs as investor interest in the yellow metal booms.
On the New York Mercantile Exchange, spot gold was up $7.70 at $527 an ounce in morning trading. In European trading, spot gold rose as high as $541.30 an ounce. Spot gold is trading at levels not seen since 1981.
Traders said the contract is testing resistance at $541.80 and $543.20, and that resistance would likely be a short-term top followed by a dip to $523.10 and $531.00. Long-term charts say that if the contract breaks through $543.20, however, it would be going for $573.
If gold ends higher Monday, it would be the eighth business day in a row of gains. On Friday, gold and silver futures extended their sharp runup on momentum-based speculative and fund buying. February gold settled up $7.50 to $530.20 an ounce Friday, while March silver - trading at 18-year highs - settled up 10.5 cents to $9.095 an ounce.
The recent surge also has been fueled by concerns about inflation.
I doubt this guy has the lobes for anything.
Gold!
Both of them are heading into overbought territory, and might pull back and consolidate before heading up again. But there's also a chance that they will explode upward in the next week or two, before doing some major consolidating in January and February. The jury is out which will happen.
The bears have been staying out of the action for the past couple of weeks, but it looks as if they may have given the market a knock on the head toward the close today.
BWAHAHAHAHAHAAAAAAAA
(breath)
BWAHAHAHAHAHAAAAAAAA
The same way we've always gotten it. Go over there, kill them and take it. If you've got enough (and big enough) guns then you don't need gold.
We won't see a collapse of the economy back to a barter system in our lifetime. Just isn't going to happen. And if we don't go to a barter system then gold is just a pretty metal and a good conductor.
The Japanese are the ones who are primarily buying gold, with the recent changes in their economy and the fact that for the first time in over a decade they are facing the threat of (low) inflation.
The economy in Japan is slated to expand for the next year, probably to a greater extent than any other industrialized nation.
"The Asians and Islamics are buying all the gold! It looks like it might have hit as high as 540 early today before pulling back. Somebody is buying all the gold!"
Yes, people who didn't have a pot to urinate in a few years ago. Now that they have some money, they're buying gold. More demand plus a relatively constant supply equals higher prices. (This paragraph brought to you by the Invisible Hand of Adam Smith, LLC. All rights reserved.)
Almost all of the demand increase is driven by jewelry. What happens when a young man gets some money in his pocket? He starts looking for a young lady, and then discovers that attracting the interest of young ladies involves shelling out a great deal of money for various shiny trinkets.
"Because if that happens then all of the Asians and Islamics won't sell us their gold for any price."
Fine. Let them find out whether or not gold is edible. (Hint: it isn't.)
"And then how would we get our gold?"
Two ways come to mind:
1. The old-fashioned way: earn it.
2. The new-fangled-twist-on-the-REALLY-old-fashioned-way: tell the Islamics and Asiatics "Just hand over the gold, and nobody gets nuked!"
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