This is a Fiat.
This is money.
This is the supply of dollars (before the government ceased publishing the supply last month)
Any questions?
Posted on 05/01/2006 9:09:41 AM PDT by DebtAndDelusion
Gold futures surged above $660 an ounce Monday to their highest level in more than 25 years, as a weak U.S. dollar and concern about Iran's nuclear- research program fueled safe-haven buying and broad-based metals rally.
"Sheer momentum, combined with a sliding U.S. dollar and heightened geopolitical concerns, greatly underpins the long-term direction for gold," said Peter Grandich, editor of the Grandich Letter, adding that while he believes a correction is "out there," he's not willing to predict it.
Gold for June delivery climbed to a high of $663.80 an ounce on the New York Mercantile Exchange, a level the futures market hasn't seen since late 1980. The contract was last up $5.80 at $660.30 an ounce.
The gains came on the heels of further weakness in the dollar. The greenback fell to a seven-month low against the euro, and a one-year low against Japan's yen. See Currencies.
And "a fresh round of concerns about the deteriorating impasse with Iran and by the probability of oil supply disruptions (not to mention much higher prices)," helped gold resume its sharp ascent, said Jon Nadler, an investment products analyst at bullion dealers Kitco.com.
"There is very little doubt now that gold is firmly in overbought territory, and that sharp corrections could come at any time," he said, adding that "the 'Dangerous Curves Ahead' signs are posted alongside this ascending road.
"Should $665 be overcome, there are more gains possible in the range between $675 and $700, [but] if the tone of the news in the next few days takes on a moderate quality and signs of progress emerge in either the Iranian situation or elsewhere, then a corrective pause is the more likely course that the metals might take," he warned.
Traders' attention is expected to be focused squarely on Iran, after the United Nations nuclear watchdog said the country failed to meet a Security Council deadline to stop enriching uranium and refused to cooperate with inspectors.
Iranian President Mahmoud Ahmadinejad on Saturday reiterated his stance that Iran will not give up its nuclear program.
The Security Council is expected to introduce a resolution this week to legally compel the Tehran government to comply with its demands. Meanwhile, Iraq accused Iran of entering its territory over the weekend and shelling Kurdish positions in the north, the BBC reported.
Overseas pause
Glyn Lawcock, head of resources research at UBS in Australia, said the rebound in resource shares in Sydney was partly a reflection that last week's sell-off may have been an overreaction to China's boost in interest rates.
"I think the market is comfortable [that] the Chinese are not looking to derail growth, but maintain it at a sustainable level," he said.
And in the good ole US they keep printing money like it's confetti. When government debases currency by excessive creation it must eventually go exponential in its price to real assets. When that happens the theoretical price for gold is infinity.
As I mentioned on another thread, the nephew reported that last week in the Carolinas and Georgia, coin shops were refusing to sell silver at any price because of the huge price run-ups ($14 today). When they won't sell gold for any price you will know it is near the end for the dollar.
Those darn Asians are buying all the gold!
HG
Starting the stop watch to time how quickly the term "fiat money" is posted in this thread.
(click)
Hold gold.
05/01/2006 11:12:52 AM CDT (click. stop timer.)
Everybody is whining about the high price of gas and if you have heard this comment before I apologize for repeating it.
A gallon of gas in 1964 cost thirty cents. That is, three silver dimes would buy a gallon of gas. Today with silver at $14, a silver dime has one dollar worth of silver in it and you guessed it -- sells for about one dollar (10 times face) at the coin shop or coin show or on the street.
With gas at $3/gallon, three silver dimes will still buy you a gallon of gas just like in 1964. It's not the price of gasoline going up -- but the value of the American dollar going down.
We are taxed to death in this country. But it is the hidden tax of institution engineered inflation that is the worst of it all. When the American people wake up like the rest of the world has then there will be a gold rush like never seen before.
In six months you will be hard pressed to buy an American Eagle for less than $800. There may be a "price" for it on the paper exchanges but increasingly you will be unable to find the actual physical metal.
Oh well, you seen one Great Depression, then you've seen 'em all.
HG
I hold physical Au/Ag/Pt/Pd, mining stocks, and the ETFs (GLD & SLV). It's a good time to be short USD/long PMs.
This is a Fiat.
This is money.
This is the supply of dollars (before the government ceased publishing the supply last month)
Any questions?
Happy May Day, onyx! And yes, "Hold Gold". :)
And the demand for gold is being driven by demand for jewelry.
Apparently, the first thing a young man with a pocket full of the local currency wants is the company of a young lady. Well, one thing leadeth to another, and suddenly, he decides (for utterly unfathomable reasons) that he wishes to marry the young lady.
Problem is, young ladies expect their suitors to pony up a suitably shiny trinket in return for acceptance of a marriage proposal...
Hey Chena!
Good to see you.
Exactly where it was when the dollar was backed by gold.
I like golds potential because as of today it can only buy 9 barrels of oil, in other words 23 barrels @ 75 dollars = 1725.00, that's where it should be : ) It's fun to get this around.
Fiat Money!
Yes, my question is, are Indians buying or selling?
Some say the Indian market is biggest.
Geez, doesn't matter where you might be, it all comes down to the BLING BLING!
"One thing for sure, the Chinese are not going to make smoke like this without ALREADY securing a fair amount of supply through intermediaries. There is no way the Chinese could buy anywhere near that amount of gold without sending the gold price bonkers. The market is already in a 1500+ tonne supply/demand deficit per year. The tiny gold market cannot handle anything close to what is discussed in the article … not remotely close at prices below $600 an ounce."
There are a lot of idle gold mines out there. If the prices are sustained, you can expect they'll be fired up.
Many in N.CA turn a tidy profit at $600.
And, after that:
"I want HALF, Eddie!"
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