Spot gold surges over 2 pct, above $1,020/ounce

[danberkeley]

Spot gold surges over 2 pct, above $1,020/ounce
Sun Mar 16, 2008 8:42pm EDT

TOKYO, March 17 (Reuters) - Spot gold surged more than 2 percent to a record high of above $1,020 an ounce on Monday on heavy safe-haven buying due to a plunge in the dollar as concerns over U.S. financial problem heightened.

The dollar tumbled after JPMorgan Chase said it would buy cash-trapped Bear Stearns and the Federal Reserve cut its discount rate. [ID:nN16640873]

Spot gold climbed as high as $1,021.40, compared with late New York levels on Friday of $996.90/997.70.

U.S. gold futures GCJ8 also hit a record high of $1,023.80 per ounce in electronic trading on Monday. (Reporting by Chikafumi Hodo; Editing by Rodney Joyce)

[SevenEyedJeff]

$1,025 now its going up literally by the minute lol.

[SevenEyedJeff]

Just checked again, now $ 1,032 :D

[ShaneC]

and a drop to 1023.30.......

Anyone else think it'll dip a good bit in the morning when NY opens? (Then stabilize for a bit)

[danberkeley]

and a drop to 1023.30.......

Anyone else think it'll dip a good bit in the morning when NY opens? (Then stabilize for a bit)

Gold is a long-term investment (speculation, actually) and gold could dip $100 this week, for all I care, because gold is almost guaranteed to hit $1500 in the long run. Buy gold as a hedge against the falling dollar.

[Cowlesy]

Well if the Fed freaks out and cuts rates a day early tomorrow, that will only further boost gold prices.

[buffalokid777]

Gold is a long-term investment (speculation, actually) and gold could dip $100 this week, for all I care, because gold is almost guaranteed to hit $1500 in the long run. Buy gold as a hedge against the falling dollar.

Ditto....may not be this month....may not be this year......$1500 gold within 2 years.....quicker if things change for the worse (Like an attack on another country)

[OptionsTrader]

I wouldn't worry about the value of gold on a minute to minute basis. If you own it, just forget about it for a while.

It is funny that most people do not fret about the value of their dollars in their bank account and how its value violently depreciates against the euro on a daily basis. They should.

[OptionsTrader]

EUR/USD pair, over 2 years:

http://i27.tinypic.com/kb9nbt.jpg

[Dr.3D]

I tend to watch the price of the precious metals rather closely. Not so much because I am worried about my holdings, but because I feel it to be an indicator as to how fast the market and dollar are deteriorating. I have so far been noticing an increased decline of the dollar and rise in the price of the precious metals (gold, silver) happening at an exponential rate.

[buffalokid777]

I wouldn't worry about the value of gold on a minute to minute basis. If you own it, just forget about it for a while.

It is funny that most people do not fret about the value of their dollars in their bank account and how its value violently depreciates against the euro on a daily basis. They should.

Because MOST of us here ACTUALLY have gold and silver instead of dollars......

Why should we worry? .........the only people that SHOULD be worried are those with LOTS of dollars and stocks...but NO gold and silver.....

And since Ron Paul supporters are FOR SOUND MONEY.......the people who have NO gold and silver.....probably aren't Ron Paul supporters anyway.....if they were....they would probably have some silver and gold.......

[ghemminger]

EUR/USD pair, over 2 years:

http://i27.tinypic.com/kb9nbt.jpg



What a sick chart - just wish I had more fed reserve notes to exchange for silver

[Archie]

I wouldn't worry about the value of gold on a minute to minute basis. If you own it, just forget about it for a while.

It is funny that most people do not fret about the value of their dollars in their bank account and how its value violently depreciates against the euro on a daily basis. They should.

Aint that the Truth:eek: ITs funny In Canada all this idiots are feeling so Superior because the Cdn dollar is at par or above the USD by a few points ,and they stuff there money away in the bank thinking that its not gonna lose its value . What these morons dont understand is CDN dollar is pegged to the US dollar and When the USD loses buying power so does the Canadian dollar as well. The Canadian people dont realize this because the CDN dollar is pegged a few points higher then the USD currently . But if Canadian people really think there Dollar is "so much better" then the USD then in proper logic the Canadian dollar should be sky rocketing like the British pound or euro against the USD, but its not because its pegged to it and moves along and adjusts with it ..

Man I cant understand how Canadians think they have the upper hand against the USD ?:confused:

Typical Canadian says "Aint it awesome our Dollar is on par with the american dollar and even worth a few more cents more then the US Dollar"

Then I Crash there idiotic party with the simple words of "thats not good that our dollar is on par or a few cents more then the USD because the US dollar is at all time shit lows,not to mention how bad the export's are gonna slide down to all time lows with the USA especially since the US was our biggest buyer of canadian lumber?

ITs Scary that people have no idea about the Real issues going on right now with the plummenting dollar and its effect on the CDN dollar. IF the Canadian Dollar was "doing great" Then it should be flyin along side the British pound and even the euro instead of a currency that has lost almost 60% of its international buying power that being the USD ...

[Bigvick]

EUR/USD pair, over 2 years:

http://i27.tinypic.com/kb9nbt.jpg

Lol, I made the worst move in my trading career when I thought the Euro would peak at 1.50 and then retract...I had a huge lot long on EUR/USD at 1.48... and took profit at 1.50..a few months ago..

I would have been a multi millionare had I kept that lot..:( - Ironically I kept a smaller lot with CHF/USD.. :)

Live and let learn..

At least I invested 100k in gold at $600 now it's valued at 1020$ Lol...

[ghemminger]

Lol, I made the worst move in my trading career when I thought the Euro would peak at 1.50 and then retract...I had a huge lot long on EUR/USD at 1.48... and took profit at 1.50..a few months ago..

I would have been a multi millionare had I kept that lot..:( - Ironically I kept a smaller lot with CHF/USD.. :)

Live and let learn..

At least I invested 100k in gold at $600 now it's valued at 1020$ Lol...


Nice BigVick - I'm interviewing with 2 commodity firms Farr Fin. and Roslex. They don' pay much but the potential seems good

[Banana]

I can't help but hesitate to buy more gold as I'm afraid it'd come down crashing....

[ShaneC]

Man I cant understand how Canadians think they have the upper hand against the USD ?:confused:


I think its more just the simple fact that the CDN is no longer trailing the USD that generates the excitement. All about the ratio, not about the stability.

[Archie]

I think its more just the simple fact that the CDN is no longer trailing the USD that generates the excitement. All about the ratio, not about the stability.

Speak of the Devil HAHAHA The CDN dollar just took one of the biggest hits since the early 60's :eek: Thats what happens when ya think your currency is "on top of the world" just because it was worth a few cents more .. And Its amazing how I had a Dream a few days ago about a Major Precious Metals correction to silver and gold and while it was not as bad 720 oz gold I hit the Silver correction in my dream pretty good at slightly above 17 oz LOL!!!!!!

[Mr. White]

Lol, I made the worst move in my trading career when I thought the Euro would peak at 1.50 and then retract...I had a huge lot long on EUR/USD at 1.48... and took profit at 1.50..a few months ago..

I would have been a multi millionare had I kept that lot..:( - Ironically I kept a smaller lot with CHF/USD.. :)

Live and let learn..

At least I invested 100k in gold at $600 now it's valued at 1020$ Lol...

Giving out long term low interest fixed loans for poor grad students?

[Zippyjuan]

I can't help but hesitate to buy more gold as I'm afraid it'd come down crashing....

Rapid spikes in price are often a sign that speculators have moved in and a bubble is in the making- just look at tech stocks in the 1980's or the recent housing market. How long will it continue to go up and how far- noboky knows for sure. The last time gold peaked like this it was over a shorter term but when it dropped, it took 25 years (until now) to go back up to that level. Buy gold because you think it will hold value for you- not because the price is shooting up now. http://www.nma.org/enumerate/gold/gold.htm

[Banana]

Buy gold because you think it will hold value for you- not because the price is shooting up now. http://www.nma.org/enumerate/gold/gold.htm

Now, "holding value" is what I expect to do with gold- the right question would be- when the gold prices comes crashing, will my buying power stay the same because I am holding the gold? Is it possible for gold to crash while other things stays at same price level?

[RadiantBlueLight]

You don't lose value when you're in gold. Period. "Price of gold" is somewhat of a misnomer in that it's been the same "price" for thousands of years. When gold goes up all it means is the dollar has gone down. There are minute fluctuations day to day but that's just the short term traders profit taking. Metals dropped today because of increased confidence in the market: JPMorgan's grabbing up Bear and billions in Fed floated debt. $200 billion for Freddie and Fannie and fast and furious rate cuts. The Fed's help has given the market a breather for the short term.

If gold plunged back to $300 six months from now, you could buy the same amount of goods as the money had when you first bought the gold at $1000. No loss at all. The dollar is doomed and starting to show it, therefore gold will rise.

[Archie]

You don't lose value when you're in gold. Period. "Price of gold" is somewhat of a misnomer in that it's been the same "price" for thousands of years. When gold goes up all it means is the dollar has gone down. There are minute fluctuations day to day but that's just the short term traders profit taking. Metals dropped today because of increased confidence in the market: JPMorgan's grabbing up Bear and billions in Fed floated debt. $200 billion for Freddie and Fannie and fast and furious rate cuts. The Fed's help has given the market a breather for the short term.

If gold plunged back to $300 six months from now, you could buy the same amount of goods as the money had when you first bought the gold at $1000. No loss at all. The dollar is doomed and starting to show it, therefore gold will rise.

But what about something like new car's? [since the mid-80's up untill today] for instance sure todays worth of 25 oz's of gold could by you a brand new 25 thousand dollar car but so can 25k cash in hand right now ,But Im pretty sure that if Gold went down tommorow to 500 an ounce you would need 50 oz's of gold instead of 25 oz's of gold to buy the exact same brand new car. But on the other hand you will still be able to buy any brand new 25k car for 25k USD Cash in Hand .. I do Agree with you that "gold's value" in other things "never loses" its real value but As this Brand new Car example I put forth ITs sometimes very funny how USD Cashola in hands has consistently been able to buy that brand new luxery 25k cars since the mid 80's up untill 2008 when 25 oz's of gold has not been able to buy that brand new luxery 25k car since the mid 80's and up

Good points though Just thought I would add some food for thought:)

PS- Dont all yous guys get jelous of the days of Brand new Fast luxery cars in the 60's and 70's that went for 5-10k and more importantly when you still had lots of "driving freedoms" that you dont have today

[5 year old kid gets into his Pinko Car seat which is so uncomfortable]

[RadiantBlueLight]

But what about something like new car's? [since the mid-80's up untill today] for instance sure todays worth of 25 oz's of gold could by you a brand new 25 thousand dollar car but so can 25k cash in hand right now ,But Im pretty sure that if Gold went down tommorow to 500 an ounce you would need 50 oz's of gold instead of 25 oz's of gold to buy the exact same brand new car.

It would take a while for goods prices to match such a radical one day turnaround if gold went to $500. When my dad bought his first house, a modest two story in the city, it cost him $25k in 1973. Today that same house would go for $250k. Gold in 1973 was $100/oz and today it's $1000. Gold, grain and oil are the three pillars holding up civilization as a whole and apart from supply problems will retain value forever.

[Shed]

The gold price is still subject to supply and demand, even if it's inflation proof. So I think it would be more accurate to say the value of gold changes within quite a tight margin, rather than remaining absolutely constant.

[Banana]

So basically, when gold prices drops, the buying power is temporarily contracted while market corrects itself then it's basically same (e.g. prices for other goods drops as well)?

This was what I wanted to know and now feel a bit better about.

[Shed]

I should say the purchasing power of gold only remains more-or-less-fixed in the long term, not on a daily basis.

[RadiantBlueLight]

It's fiat currency's fault for any lag in gold's purchasing power. If the dollar was backed by gold, there wouldn't be a discrepancy.

The spike is Nixon taking us off the gold standard August 15, 1971. Before then, the price stays the same as far back as you want to go.

http://www.kitco.com/LFgif/au883-999.gif

[kirkblitz]

darn i wish i had bought some at 50. to bad i wasnt alive lol