Posted on 08/22/2011 2:37:15 AM PDT by markomalley
Spot gold surged more than 1 percent to a third consecutive all-time high on Monday, as investors fled to the safety of bullion amid fears of another U.S. recession and the euro zone's debt crisis.
Spot gold struck a record at $1,888.90 an ounce, after staging its biggest weekly gain in 2-1/2 years last week. It traded at $1,888.76 by 0640 GMT.
U.S. gold jumped more than 2 percent to an unprecedented $1,895.3.
A murky economic outlook given a persistent flow of weak macro data out of the United States and fears about the euro zone's fiscal health have propelled gold up by more than a quarter since July.
"We are not expecting anything supporting the U.S. economy or the macro data for at least a couple of months," said Tom Price, Global Commodity Analyst at UBS.
"Europe we regard as even weaker. We are thinking $1,900-$2,000 over a very short period of time is a likely target."
(Excerpt) Read more at in.reuters.com ...
I have no idea what’s going to happen to the price of gold. I only know it has risen very quickly in value. Has another important commodity kept up with the rapid increase in the value of gold? Do you believe an ounce of gold is worth what $2000 buys otherwise? $2000 will buy you more than 20 barrels of oil. Is one ounce of a shiny metal with few practical uses worth more than 20 barrels of oil, a couple very nice rifles, or a several months of groceries?
ABSOLUTELY.....the new norm.... We got used to coffee prices in similar but smaller cans....gasoline prices, bottled water....so why would gold be exempt?
GRIN.............Gold the "next greatest" equalizer....
Is one ounce of a shiny metal with few practical uses worth more than 20 barrels of oil, a couple very nice rifles, or a several months of groceries?
“Yes, and it always has. And always will.”
(Thanks for teeing that one up for me).
img src=http://www.croplife.com/articles/image/2011-02/Ag_Commodity_Prices.jpg””height=218””width=285"></img
Please refer to accompanying graph;
You can see (according to this chart) that commodity prices certainly are rising as fast as gold, some faster. There is a time lag between producer/manufacturer transactions and when you see resultant price increases on store shelves mostly (I suspect) due to competitive pressures.
I'll bet you've noticed prices rising, package sizes shrinking.
please pardon # 25, I’ve got an itchy “post” finger
bump for gold down 5%
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