[Uncle Hal]

Folks, gold hitting $700 an ounce is not good news. There are people out there that think there is trouble ahead and they want to own gold. Those people out there are not dumb and they are talking with their money.

[TexasRepublic]

If there is ever a financial collapse, food and bullets will be worth more than gold.

[joesnuffy]

Yep and they are in China and India and have more money to spend these days....and they are buying it up....as well as are their governments...

Question is are their governments selling off their FRNs reserves to buy gold and other metals?

[Paddlefish]

I still remember my roommate in grad school during the Iran hostage rescue disaster. He was completely into money, and when he awoke the morning of the debacle and I told him what was being reported on the news, his first words were, "BUY GOLD!"

[BeHoldAPaleHorse]

Folks, gold hitting $700 an ounce is not good news.

It's almost entirely being driven by young men in Asia looking to...ahem...score. Apparently, the female desire for shiny adornments is cross-cultural.

There hasn't been a significant increase in supply, but (legitimate as opposed to speculative) demand has skyrocketed. Supply will probably expand in the coming year as mining operations ramp up, and that means (a) prices will stabilize, and (b) there will be a LOT of hucksters shouting "BUY GOLD!" in a last squeezing of the grapes...

[n-tres-ted]

Folks, gold hitting $700 an ounce is not good news. You are certainly correct. The value of gold does not change, and the supply is so large (since gold is not consumed and does not waste) that supply/demand does not importantly affect the price. Therefore, the price of gold is a very accurate signal of the spot value of the dollar. Unless the Fed can get the price of gold back down (and assuming the gold price goes no higher than $700/oz), the U. S. can expect general prices to rise 50% during the next 10-15 years. The Federal Reserve is being run by demand-side economists from the universities, who do not understand the necessity of keeping the dollar's value honest and stable.

[Hot Tabasco]

There are people out there that think there is trouble ahead

There are a lot more people who think the gold buyers are panicking and laughing at them.

I think too many of them are listening to the "Buy Gold" commercials that are running rampant on all the radio talk shows.........