Gold prices on the rise big time!

[Maurice Bedard]

Peter Schiff, Jim Rogers 2000 Gold and Max Keiser discuss gold and the possible rise to $5,000 an ounce.

[davephx]

Gold Comments

CBNC Closing Bell 2/5/10 - The gold as a safe haven theory is a bit overblown. Instead in crisis the dollar is going up and gold is declining. In January there were huge outflows of funds from the huge SPDR Gold Index (GLD) "I think investors were smart, is the truth. There was about a billion dollars in outflows from gold in January ahead of the huge drop in gold we have seen recently. We actually often see that with ETF traders leading the market - they did that in gold as they shied off the asset as its gotten inflated. I think you will see that continue...It has lost its safe haven asset... as we saw in its $50 drop yesterday its not really a store of value anymore. There are so many people in the game now I think the nature of gold has changed." (Matt Hougan of Indexuniverse.com)

[Angels]

Its currently in a bubble, much like our real estate was a few years ago. I recommend staying away or if you cannot resist only put in what you already decided you don’t need.

[davephx]

There is no fundamental demand for gold, only by the gold bugs and gloom and doomers. Yet the bubble keeps getting larger, just like Real Estate in Phoenix did and just like tech stocks did in the prior market crash 2 years after Greenspan warned about "irrational exuberance"

That is clearly Gold today and we also have a bond bubble which is starting to slowly leak especially the huge decline in muni's a few weeks ago.

With the European debt concern again money is pouring into the "safe haven" U.S. dollar as usual.

[DELL1]

another bubble, when will it explode?

greitos paskolos, greita paskola

when central banks stop printing $, which does'nt seem to be anytime soon.

[LoanModHelpCenter.com]

There is no fundamental demand for gold, only by the gold bugs and gloom and doomers. Yet the bubble keeps getting larger, just like Real Estate in Phoenix did and just like tech stocks did in the prior market crash 2 years after Greenspan warned about "irrational exuberance"

That is clearly Gold today and we also have a bond bubble which is starting to slowly leak especially the huge decline in muni's a few weeks ago.

With the European debt concern again money is pouring into the "safe haven" U.S. dollar as usual.

Gotta let you know something here, the $ is going to de value to .50 cents on the dollar, and well gold is going to go up 50%... you ask WHY?>HOW?

China and other countries are going to stop using the US dollar for oil trade... and use the YEN instead..... BAD BAD BAD..... keep all your money in gold gold has and awlays will buy you a find genterlmens suit with 1 oz... it did in the 1800 and it still does today it will never lose value.

[davephx]

Why would there be a demand for Yen when Japan as over a 120% debt ratio and has far more serious structural problems than the U.S.

The U.S. dollar is by far the only "safe money" currency as reflected in every crisis such as Europe Soveregn debt issues. WIth every crisis the $US rises and huge excess demand for Treasuries (almost always at least 200% demand vs supply).

Over time we want the $US to decline since that helps the U.S. economy (exports). Our GDP growth has often been reduced by 2% or more due to our net excess imports. The Gross national spending showing even more robust recovery has been far larger than the "Gross Domestic Product" (GDP) since the massive consumer spending on foreign goods subtracts from "Domestic" data.

Especially a problem is China's way to lower currency controlled by China not the free market. Most countries are trying to lower their currency values since helps their domestic economies (lower home country currency discourages imports and helps exports).

[LoanModHelpCenter.com]

HI ,
can any body tell me that investing in a real Estate is good or in GOld .which will give more retutns ...

GOLD ALL DAY..... since the 1800's a 1 oz gold coin could buy you a fine suit and today, a 1 oz gold coin will still by you a find suit.. GOLD will not lose its value, in fact when the dollar de values to 50cents real soon, gold with rise 30-40% in my opinion. Why will the dollar de value? Well because china and Korea, are talking about not using the US currency for oil trade, and if that happens and the currency goes to Yen, WATCH OUT.... gold will sky rocket.

[Angels]

I have a differing opinion. Gold is purely speculative, that its value is only what someone else is willing to pay for it and you hope when the time comes to sell it the next person will pay more then you did. It does not feed anyone, provide shelter, or do some kind of work. Real estate can fall into those categories but I think the rate of return is better. For example, say you pick up a house for around 120K cash and rent it for 1200 a month. That’s a 10% rate of return + a tax deduction. Renting a property is not all roses and there are risks involved that can be out of your control, but for me personally between the two (and having the money of course) I would rather put it in real estate.

[Angels]

I have a differing opinion. Gold is purely speculative, that its value is only what someone else is willing to pay for it and you hope when the time comes to sell it the next person will pay more then you did. It does not feed anyone, provide shelter, or do some kind of work. Real estate can fall into those categories but I think the rate of return is better. For example, say you pick up a house for around 120K cash and rent it for 1200 a month. That’s a 10% rate of return + a tax deduction. Renting a property is not all roses and there are risks involved that can be out of your control, but for me personally between the two (and having the money of course) I would rather put it in real estate.

[smalltownblues]

How,
please tell me some more tips to invest in the gold .

My dad once went to Alaska with my uncle who had a friend whom owned a mining claim. There he spent many days mining for gold. At the end of the day the owner of the claim kept 50% of that days find and split the remainder evenly with the others working the claim. Although he did not come back with much gold he still has all of it. If the value does go up to $5000 an ounce he would be wise to sell. So if your up to it, you could look into mining.

[freedomwon]

Gold is trading at all time highs today. It went as high as $1422 per ounce this morning. Just a few months ago it was trading around $1300 per ounce. Had you invested in gold a year ago, you would have made 32% on your investment. Spot silver also hit a 31 year high trading at $34.40 per ounce. Had you invested in silver just one year ago, you would have doubled your investment.

Will this bubble burst soon or will the price of gold & silver continue to rise? Once an asset has made a huge run as both gold & silver has, at that point it’s usually time to sell. However; hyperinflation is on the horizon. As long as our Treasury continues to print money, prices of hard assets will continue to rise.

Most countries utilize the U.S. dollar to pay for foreign oil. That will soon change as they have seen the devaluation of the U.S. dollar. This will cause the prices of gold & silver to continue to rise. The question is for how long?

[Maurice Bedard]

I think it is actually turning into a bubble. If you think about it, what is gold and silver? Shiny metal that makes nice rings and jewelry.

The powers at be could all of a sudden say cow dung is our new currency and we would be trading cow patties for food and rent. Hey, that is not so far fetched, right? After all, us humans work and toil all our lives for a green piece of paper.....

With that said, once the herd is on the trail, the smart and elite start to secretly pull out or plan a pull out.

[DELL1]

I think it is actually turning into a bubble. If you think about it, what is gold and silver? Shiny metal that makes nice rings and jewelry.

The powers at be could all of a sudden say cow dung is our new currency and we would be trading cow patties for food and rent. Hey, that is not so far fetched, right? After all, us humans work and toil all our lives for a green piece of paper.....

With that said, once the herd is on the trail, the smart and elite start to secretly pull out or plan a pull out.

several years ago i read a 10 page pamphlet put out by the wall street journal and it explained the history of money. how since early days, the dude with the cow and no clothes needed to exchange something with the guy with tons of clothes and no meat. the element of scarcity was required, hence cow dung wasnt used. what first was used was meat and crops and skins and (women!), no! J/K!!! but as we evolved rare metals were used. now we have electrons and debt and the whole damned thing is going to unwind. "currency value" is subjective and subject to debasement. i would not be the least bit surprised to see currencies going up in flames but humans will still need a medium of exchange.

bernake says we should'nt worry about oil prices...my buddy who buys and sells it all day long says $80 is the new floor...i believe my buddy

however, if the cow patty thing catches on, India will be the new Dubai! they got a 1/4 billion cows there!

[Maurice Bedard]

Great story DELL. I often say that I wish I lived in the old days. Take me back to the 7th century and I'd be happy!

To be honest, I think soon or someday in the near future, there will be no physical money and it will all be done via cards, credits and computer. Within the next 5 years, the American dollar will vanish and so will "hard" currency and even metal as a currency.

Money, the dollar and even credits are the single most effective method that helps keep a vast human society in order because they have to toil all day and their lives to get that pice of paper they cannot grow in their yards or make themselves.

Those cards we use at the grocery story for discounts will actually be used as security just to get in the store because so many Americans will be going hungry.

I see a much different American and world by the time this crisis is all over and it will not be the same world we see now.....

[Maurice Bedard]

Oh and just FYI, while the herd is out buying gold, the elite are buying up our food.

What many of us may fail to realize on Main Street is that Wall Street is now betting that we will be starving and they will help by driving the food prices through the roof.

I am not sure if any of you have noticed, but food is on the rise. What you see on the shelf now and you are, will be 3 times the cost in the next few years. Hence, if you like good food, you better increase your value as a worker and thus increase your paychecks to compensate for the hyperinflation in food that we WILL see soon.

This is no joke folks. Your mortgage will be the least of your worries VERY soon!!!!!!

[Angels]

Great posts Moe. i was thinking about this the other day and what is really worth investing in with the greatest returns. I remember someone once telling me that guns were a great investment because they never depreciate and you can always use them to hunt with (they have a useful purpose). Seems to be true from what I can tell.

Outside of physical things to invest in and to broaden your prospective on investing itself, what about investing into your family? If I had $100 to invest i would take my family out to eat and enjoy the time we have talking with each other. That time will be remembered for the rest of your life and theirs and an experience that could never be taken away.

[DELL1]

Utah Considers Return to Gold, Silver Coins

By Stephen Clark
Published March 03, 2011
| FoxNews.com


AP2008
The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. (AP)

It's been nearly 80 years since the U.S. stopped using gold coins as legal currency, and nearly 40 since the world abandoned the gold standard, but the precious metal could be making a comeback in the United States -- beginning in Utah.
The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.
The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.
The bill cleared a state legislative committee on Wednesday, the first of 13 similar bills in statehouses across the country to do so. If the bill clears the House, it would have to pass the Senate before the governor could sign it into law.
Attorney and Tea Party activist Larry Hilton, author of the original bill, said he doesn't foresee any roadblocks.


The U.S. used some version of the gold standard from 1873 until 1933, when President Franklin D. Roosevelt outlawed the private ownership of gold amid the Great Depression. An international monetary system based on a gold-exchange standard continued until 1971 when President Richard Nixon stopped the U.S. from redeeming dollars for gold altogether.
Critics of the gold standard say it limits countries' control over its monetary policy and leaves them vulnerable to financial shocks, such as the Great Depression. But supporters argue that the current financial system's dependence on the Federal Reserve exposes the value of U.S. money to the threat of inflation.
Rep. Ron Paul, a longtime critic of the Federal Reserve who has called on a return to the gold standard, has praised Hilton's efforts.
"Efforts such as yours in states around the country highlight the importantance of returning to sound money," Paul wrote in a letter to Hilton. "Even if such efforts fail to achieve legislative success on their first try, their importance lies in bringing to the public's attention the problem of the ever-weakening dollar and the necessity of returning to a sound monetary system."
Hilton said the bill before the House doesn't go as far as his original draft, which was more sweeping, including recognizing more than just U.S. minted coins and more details on specific tax treatment. But he said he's willing to take it step-by step.
He also said he's not pushing to restore the gold standard in the U.S.
Federal Reserve Chairman Ben Bernanke this week dismissed the notion of the gold standard returning to the U.S.
"It did deliver price stability over long periods of time, but over shorter periods of time it caused wide swings in prices related to changes in demand or supply of gold," he told the Senate Banking Committee. "So I don't think it's a panacea."
Bernanke also said that gold couldn't return as the world standard because there's not enough gold in the world to effectively support the U.S. money supply.
Hilton said he's taking a positive approach to the issue.
"This is not an anti-dollar issue at all," he said. "We want to strengthen the dollar. We think by introducing gold and silver of our nation's history, by injecting that into the debate is very healthy for our policymakers."
Jeff Bell, a policy director for the Washington-based American Principles in Action (APPIA), which helped shape the Utah bill, told FoxNews.com that passage of the bill would send a message to Washington and other states.
"People sense that in the era of quantitative easing and zero interest rates, something has gone haywire with our monetary policy. But people are afraid to say it," said Bell, who was an adviser to Ronald Reagan's 1976 and 1980 presidential campaigns. "If one state recognizes gold as a valid currency, I think it would embolden people not just in other states but in Washington."
Bell credited Tea Party activists for advancing the legislation this far. Rep. Brad Galvez, who introduced the legislation, is a freshman legislator backed by the Tea Party.
"Saying we now recognize gold as money is a big step forward," he said.
Twelve other states have offered similar proposals: Georgia, Montana, Missouri, Colorado, Indiana, Iowa, New Hampshire, South Carolina, Tennessee, Washington, Vermont and Oklahoma.

[rosalinda]

it's $1706/oz today!!! what now???