Gold Rallies To Record, A Whisper From $1,400

Market Watch ^ | 11-5-2010

[blam]

Gold Rallies To Record, A Whisper From $1,400

Nov. 5, 2010, 3:30 p.m. EDT

Silver’s at 30-year high; copper at its best in more than two years.

Gold, silver surge as Fed move punishes dollar.

SAN FRANCISCO (MarketWatch) — Gold futures rallied to a fresh record high Friday, settling less than $3 away from $1,400 an ounce a day after their biggest one-day gain in nearly 20 months.

Gold for December delivery /quotes/comstock/21e!f:gc\z10 (GCZ10 1,394, +10.80, +0.78%) added $14.60, or 1.1%, to $1,397.70 an ounce on the Comex division of New York Mercantile Exchange. Silver and copper also hit historic high marks.

The metal went from losses to a solid rally in under three hours of floor trading, and kept going even as other commodities and the stock market moderated their gains.

Gold rose 2.9% on the week, on the heels of a 2.5% gain in the prior week.

Spiralling Irish yields question austerity targets.

Ireland is struggling under the weight of the austerity program and, with yields hitting ever higher levels, the market appears to have lost faith. EU/IMF support looks more likely. Gold’s record run on Friday surpassed Thursday’s settlement record of $1,383.10 an ounce, notched a day after the U.S. Federal Reserve said it would buy an additional $600 billion in U.S. Treasurys to stimulate the economy.

The metal got back into record-breaking mode Thursday. It had posted 17 record highs in little more than five weeks in September and October. Read more on Fed’s $600 billion on bond-buying plans.

In inflation -adjusted terms, however, gold is still far from its January 1980 record of $875 an ounce. Gold would have to trade around $2,300 an ounce to make up for three decades of inflation. Read earlier story on gold's inflation-adjusted peak.

[snip]

[Electric Graffiti]

In inflation -adjusted terms, however, gold is still far from its January 1980 record of $875 an ounce. Gold would have to trade around $2,300 an ounce to make up for three decades of inflation. Read earlier story on gold's inflation-adjusted peak.

With the insanity of Screwy1, 2, 3, 4 etc.

It'll pass 2000 before the year is out. It'll top out at 3,500 if we recover, otherwise the sky is the limit.

[MichaelCorleone]

“Gold would have to trade around $2,300 an ounce to make up for three decades of inflation.”

I don’t doubt your math, but do traders/investors really look at it that way when making buy/sell decisions? Particularly when inflation as measured by the CPI is flawed, if not downright dishonest.

[blam]

(Ahem) Gold is not the only thing inflating or going to inflate. If these projected numbers are high by 50%, we're still in deep doo doo.

NIA Projects Future U.S. Food Price Increases

"NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by the end of this decade, a plain white men's cotton t-shirt at Wal-Mart will cost $55.57."

[The Theophilus]

"NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar..."

Prices only matter to those who actually have to pay for food from their own pocket. Food Stamp recipients will merely see a matching increase in their spending limits

[blam]

In U.S., 14% Rely on Food Stamps

[caww]

By population, Washington, D.C. had the largest share of residents receiving food stamps: More than a fifth, 21.1%, of its residents collected assistance in August.

Just interesting our capital city has the highest use of food stamps.