Posted on 09/11/2009 5:57:01 PM PDT by TigerLikesRooster
Gold ends above $1,000 for first time since Feb
By TIM PARADIS, AP Business Writer
Fri Sep 11, 4:14 pm ET
NEW YORK – Gold prices settled over the $1,000 mark Friday for the first time since February.
The rise in gold came as the dollar hit new lows for the year against the euro. Investors buy into gold in part as a safeguard against inflation.
Gold for December delivery rose $9.60 to settle $1,006.40 an ounce on the New York Mercantile Exchange. It was the highest close for gold since Feb. 20. On Aug. 27, gold finished below the $950 mark.
December silver rose 3 cents to $16.70 an ounce. Copper and aluminum lost ground.
(Excerpt) Read more at news.yahoo.com ...
I wonder what would happen if Americans are totally free to possess gold.
Local report here says that a bride went to jewelry store to buy a gold ring, and was shocked to find that local gold price skyrocketed.
Ping!
“I wonder what would happen if Americans are totally free to possess gold.”
Do you mean free to afford it? It’s not illegal to own gold. Yet. ;)
When were gold restrictions lifted?
December 31, 1974 ended the era of private U.S. gold ownership restrictions which had begun in 1933. As of January 1, 1975, U.S. citizens were again free to own gold in any form, including bullion, and in any amount that they can afford, without restrictions or any federal ‘reporting’ of those holdings.
http://www.onlygold.com/faqcenterpages/faq_legalissuesandgold.htm
I’d be a tad leary buying gold at these prices and I hate to think of the economic circumstances that would continue to drive the gold prices up. It’s fallen from some pretty lofty highs in the past. I’d rather be cautious than wrong in thinking it would continue to climb like the housing bubble.
My little ignorance ended up clearing me of being a gold shill.:-)
I think gold is in a bubble. But I’m not bold enough to short it.
If dollar is keeps going down
You are a wise man. Many gold mining companies have, in effect, shorted gold by selling a huge amount of futures. Barrick Mining, for instance, is in what might be called technical default, as instead of delivering gold on expiring contracts, they are paying off in dollars (raised by selling stock). Otherwise they would have had to buy gold on the spot market and send the price to the moon.
If anyone has paper gold positions, you might consider physical possession as there might be a short squeeze or another derivative flap ahead.
The Barrick default n its hedgeing is a wake up call. Jeeze its Barrick, Barrick doesn’t have the gold.
I believe our economy is going to further decline where purchasing basic food consumes more and more of the available income. I just wonder how much gold will be worth then when everyone is just trying to get some bread.
I would love to invest in gold if I could but I just don’t see how in a crashed economy you take your gold coins down to the market and get your needed goods.
How would you know if any of the gold you buy in physical form, is actually all gold?
I remember during the last gold run, reading about people who thought they were buying gold ingots and coins, only to find out they were gold plated silver or lead.
Almost any metal can be “gold plated” to look like the real thing.
I’d think the only way to really know would be to cut it in half.
Think I’ll stick to GLD.
By the way, for those who are interested in shorting gold, there are ETF’s that do that for you.
Ticker symbol DZZ for example is a double short on gold.
I think DGZ is a single short.
Check them out first before using them if interested. You can check them on Yahoo.Finance.com or www.ETFCONNECT.com.
Nice thing about a double short is you can simple use 1/2 the funds you were planning on, to get the same hedge.
Food (or gold) for thought.
You could determine the volume of the item in question and then weigh it.
Just saying.
Private barter perhaps? At least a store of wealth. You won’t be able to do much of that with useless 5 Quintillion dollar bills.
The ChiComs doubled their gold reserves to 1054 tonnes in the last couple of years.
1054 tonnes = about $37 billion at $1000/oz.
ChiComs would need another $200-$300 billion of gold reserves to approach US reserves at 11,000 tonnes, Eurozone 8,000 tonnes.
Then about 10-15% of hard currency reserves would gold.
They could just float their Renminbi and make it a hard currency and all would be fixed.
yitbos
Ambrose Evans-Pritchard reports that the ChiCom buying is scheduled to last for quite a while, but only on dips. He says the price should not get a chance to fall too far.
yitbos
You can buy gold coins (American Eagles for example) from established coin dealers (retailers). That way you have the coins in your possession.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.