Posted on 05/10/2006 2:40:22 AM PDT by wotan
After rising to $570 an ounce in February and correcting down to $540, gold has been on a tear. In the past sixty days the spot price surged by an astonishing $100, closing above $635 an ounce yesterday, its highest close since 1979. Even more stunning has been the performance of silver. After hitting new highs in February at just under $10.00 an ounce, silver skyrocketed by 50% to almost $15.00 before profit-taking cooled the rally. Palladium and platinum have also enjoyed strong gains during this time frame, but not quite as sensational as gold and silver.
Just as remarkable is the time frame of these gains. Historically, the first quarter of the year is the weakest time for metals. Once Chinese New Year and the Indian festival season pass, international demand for physical gold generally subsides for a while and prices soften. But not this year. As 26-year market veterans, we haven't seen this kind of late-winter rise since the “mother of all bull markets,” the record-breaking run from 1976 to 1980, when gold reached its all-time high of $850 and silver peaked at $50 an ounce.
(Excerpt) Read more at amergold.com ...
kook nonsense
What is means is that Bernanke should be doubling the interest rate - the inflation horse is ready to jump the gate and run wild.
Having spent the better part of the last four decades working in a high tech field I've seen how companies improved productivity.
Items such circuit design simulators and PC based PCB layout tools have improved engineering productivity, pick and place reduced the errors associated with hand stuffing circuit boards, and computer aided manufacturing reduced the skilled labor required to cut and assemble mechanical parts. Hell, when I started, we made engineering presentations by cutting and pasting graphs and photos to text that the secretary typed for us. Imagine the productivity improvement we experienced just from using Office. But in all my career, the real productivity improvements came when companies found the DL in a product could be substantially reduced if you import a high level subassembly and say put your name label on it and program it for a specific customer.
That's why more and more items are assembled offshore and that's why the engineering will be going there soon. So, I'll wear your kook badge.
We'll see who's right in the long run.
>What it does show is that foreigners believe in the US economy.
Untill they start believing in $9 trillion equals high risk of never being be paid. Does anyone believe the US govt can force millions of people to continue footing the bill for incompetence and unconstitutional acts? NO, Congress' house of cards will crumble...just a matter of time for the perfect storm to strike.
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