Gold Tops $1,018 on Continued Weak Dollar

The Street ^ | 09/16/09 | Joseph Woelfel

[TigerLikesRooster]

Gold Tops $1,018 on Continued Weak Dollar

NEW YORK (TheStreet) -- Gold for December delivery was trading at $1,018.30 Wednesday after trading as high as $1,023.30 an ounce during the session on the back of the dollar's recent weakness.

The contract closed Tuesday above $1,000 for the third straight day, adding $5.20 to settle at $1,006.30 an ounce on the New York Mercantile Exchange. Gold has been rallying in recent days as the dollar falls against other major currencies. Gold is used as a hedge against a weak dollar and inflation.

Last week marked the first time a front-month contract on gold had traded above $1,000 in six months.

[TigerLikesRooster]

Ping!

[AGreatPer]

The way Obama is printing money, $2,000 is not out of the question.

[dennisw]

Silver is up even more in the last 2 months....30%. Up from about 13 to 17.5 dollars per ounce

Silver is an inflation hedge and is useless against deflation

[dennisw]

http://www.usagold.com/live.html

You can check real time USD vs Euro prices here
Live gold
Live silver

[Atlas Sneezed]

Is there a definitive word on what the all-time high is? Kitco says 1007, but that may be the high NY close, or something.

[Errant]

We’re gonna need another bailout for banks like JP Morgan who have huge short positions in gold.

[liberty_belle_76]

Don’t sell your gold for dollars as mentioned on those stupid tv commercials ... The gold you are giving up is increasing in value while the dollar you receive is decreasing. Buy gold with dollars instead :)

[TigerLikesRooster]

So if JPM’s short covering occurs, gold price would skyrocket?

[Errant]

Yep, not to mention a possible collapse of COMDEX.

[DonaldC]

Why in the world would JP Morgan be shorting gold? sheesh

[Errant]

Make that COMEX and not COMDEX - LOL

[Errant]

To control price for central banks.

[dennisw]

Don’t sell your gold for dollars as mentioned on those stupid tv commercials ... The gold you are giving up is increasing in value while the dollar you receive is decreasing. Buy gold with dollars instead :)

That's what the Chinese are doing. They are moving into gold silver oil copper...

They want real assets...not the paper assets BS of Wall Street derivatives and Ben Bernanke's high speed printing preses

I say watch what the Chinese are doing. You don't have to copy it all the time but pay attention. They think long term

[Errant]

Barrick Gold - What does it mean?

[lainie]

Looks like it was $1021 a couple hours ago. interesting

[wizr]

Please explain something to me. How can gold be worth more, when its value is based on the dollar, which is becoming of less value?

I’m not knocking the dollar. I’m just trying to understand why people are investing in something they cannot eat, and basing its great worth on a value that is becoming less at the same time.

IMHO: It’s the real estate scam all over again!

[TigerLikesRooster]

As dollar's purchasing power declines, gold price goes up. Gold's purchasing power remain more or less steady most of the time.

Of course, there would be bubbles on the way. However, since dollar's value keeps declining, gold price in dollar will go up. Sometimes too fast sometimes lag behind, but overall on the rise.

So what part of it you do not understand?

[Lazamataz]

Jimmy Carter suspects racism is what is driving this.

[John123]

A word of caution here... although it looks like gold and silver may keep going up (and it can)... there are still other factors to consider...

We still have deflationary forces right around the corner... commercial real estate is about to crash... the next wave of mortgages are about to reset... the Chinese are lying their pants off about how well their economy is doing (If USA isn't buying... how can their GDP be up 8%?)... massive short positions by commercial bankers (hedge funds)... October is historically the worst performing month for gold...