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Gold Smashes $700 Barrier
inq7money ^ | 5/10/06 | Lewa Pardomuan

Posted on 05/10/2006 2:29:02 AM PDT by wotan

SINGAPORE -- Gold rose to a 25-year high above 700 dollars an ounce on Wednesday, prompting some investors to take profits on bullion's sharp rally this year, while platinum surged to a record high on speculative buying.

Gold has risen around 35 percent this year as investors diversified into precious metals as a hedge against global tensions, including over Iran's nuclear ambitions, rising energy costs and uncertainty about the dollar's outlook.

(Excerpt) Read more at money.inq7.net ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events
KEYWORDS: china; dollar; gold
Stampede to gold? Not impossible given the unreliability of paper currencies.
1 posted on 05/10/2006 2:29:06 AM PDT by wotan
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To: wotan
It's amazing that gold always gets blamed when things go wrong, when it is only a barometer of the health of the dollar, and gauge of geopolitical fears.


BUMP

2 posted on 05/10/2006 3:06:26 AM PDT by capitalist229 (Get Democrats out of our pockets and Republicans out of our bedrooms.)
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To: capitalist229; wotan

I've got a lot of US gold coins of recent mintage. Is this gonna end up like the early 80's when pennies were bringing more per lb. as copper than their face value?


3 posted on 05/10/2006 4:52:33 AM PDT by Roccus
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To: wotan

Gold?

Buy titanium, that's where the money's being made.

They're just sending people on a fools errand.


4 posted on 05/10/2006 5:01:55 AM PDT by Balding_Eagle (God has blessed Republicans with really stupid enemies.)
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To: Roccus

Got a piggy bank filled with pennies?

In overnight trading copper hit $7,900 per ton.That's near $4 per lb.

Let's see...10 pennies on my postal weigh 1.1 ozs. A roll would be 5.5 ozs.

Yep. I think you're right. Selling pennies for scrap would pay more than giving a roll to the bank for a 50¢ piece.


5 posted on 05/10/2006 5:43:07 AM PDT by sergeantdave (And though getting up in the world attracts attention, it does not establish solid worth.)
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To: sergeantdave

Pennies are now made of Zinc with a copper coating. Have been since about 91 or 92, I think. Only old pennies are close to pure copper, but they were closer to bronze, having a tin component also..............


6 posted on 05/10/2006 5:49:28 AM PDT by Red Badger (In warfare there are no constant conditions. --- The Art of War by SunTzu)
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To: sergeantdave

IIRC, the US Mint lowered the copper content in pennies not soon after. This was one reason that the 'wheat' pennies dissappeared so quickly. They also lowered the silver content in the other coins.


7 posted on 05/10/2006 5:51:09 AM PDT by Roccus
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To: sergeantdave

Take one of the "newer" penmies an cut it in two with a pair of lineman's wire cutters (its easy) and see the zinc. It looks like aluminum...........


8 posted on 05/10/2006 5:51:37 AM PDT by Red Badger (In warfare there are no constant conditions. --- The Art of War by SunTzu)
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To: Roccus

not soon = not long


Need more coffee!!!!!!!


9 posted on 05/10/2006 5:53:04 AM PDT by Roccus
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To: Red Badger

Any thoughts on recent US gold coins?


10 posted on 05/10/2006 5:54:55 AM PDT by Roccus
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To: Red Badger; Roccus

Well, guess the kid's piggy bank is safe.

And if zinc hits $4,000 a ton, I expect we'll see pennies made of dog biscuits.


11 posted on 05/10/2006 6:03:21 AM PDT by sergeantdave (And though getting up in the world attracts attention, it does not establish solid worth.)
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To: Roccus

Gold coin, any country's gold coin, US, Swiss, South Africa, Canada, China, etc. is "worth" the same according to weight. Actually, the "value" of gold NEVER changes. The "worth" of the paper currency fluctuates. If you went back to, say, George Washington's time, an ounce(troy) gold coin would buy the same amount of goods as it would today. Go back even to Caesar's time. The same gold coin buys the same amount of goods. It's the paper that is changing, not the gold............


12 posted on 05/10/2006 6:12:23 AM PDT by Red Badger (In warfare there are no constant conditions. --- The Art of War by SunTzu)
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To: Red Badger

I understand. I didn't ask my question properly. What I meant was, aside from collectors' value, is the gold content in these coins now worth more in paper than what their face value states?


13 posted on 05/10/2006 6:32:47 AM PDT by Roccus
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To: Roccus

I'm not sure I understand the premise of your question. The gold is always worth more than the paper, that's why it's always referred to as a "hedge" against inflation. The holder's value does not inflate nor deflate with the times and crises du jour. Gold is ageless and timeless. If, for instance, the "price" of gold hits $1000 per ounce(troy), what does that tell you of the "value" of the paper dollar? It has gone down, not up as most people will say. Let's say it went to $10,000 an ounce. The paper dollar is almost worthless, then. Let's say it goes the other way, $10 per ounce. The paper dollar would be nearly on par with the metal itself, which it once was $35 an ounce. The gold is THE STANDARD, not the other way around......


14 posted on 05/10/2006 6:42:04 AM PDT by Red Badger (In warfare there are no constant conditions. --- The Art of War by SunTzu)
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To: Roccus
The face value of a 1oz U.S. Gold Eagle is $50 legal tender. However, a coin/bullion dealer will pay $700+ for the coin today, slightly more than a 1oz gold bar due to numismatic value.

The face value of a 1oz U.S. Platinum Eagle is $100 legal tender. Similarly, a coin/bullion dealer will pay $1200+ for the platinum coin today.

One would have to be a tad nutty to pay for a $50 item with a 1oz U.S. gold eagle.

15 posted on 05/10/2006 9:41:48 AM PDT by NautiNurse
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