Gold Price Rises to 27-Year High

[wgadget]

http://www.breitbart.com/article.php...show_article=1

The price of gold soared Thursday to the highest level since 1980 on the back of the weak US dollar, while platinum neared a record level on fresh supply woes, analysts said.

Gold prices leapt as high as 748.10 dollars per ounce on the London Bullion Market.

Platinum, meanwhile, hit 1,399.25 dollars an ounce on the London Platinum and Palladium Market. That was close to its record high 1,402.50 dollars hit in November 2006.

The high points came as the European single currency bounced back above 1.42 dollars, rising close to its record high 1.4283 dollars that was struck on October 1.

Gold tends to rise when the US unit weakens because it makes commodities that are priced in dollars cheaper for buyers using stronger currencies, analysts say.

"Gold prices strengthened again as US dollar weakness underpinned solid gains," noted analysts at Barclays Capital.

The precious metal is also supported by strong crude oil prices, which in turn spark inflationary concerns. However, gold is regarded as a safe bet in times of rising inflation.

Platinum, already beset with tight supplies, took another hit on Thursday from fresh concerns in South Africa.

"The rise in (platinum) prices has been supported by concerns over supply following news of electrical power shortages in South Africa -- the world's largest producer of platinum," added Barclays Capital analysts.

"The power supply to smelters owned by Anglo Platinum was disrupted and reignited fears that the power situation could worsen over the next few years."

[Syren123]

Yeah baby!

[RP4ME]

Is there any thought that todys spike might go down a bit? I was gonn buy today but I wanted to wait till tommorow to see.....any thoughts? I relize overall its on its way up... I figure the CBs will want to sqush this down a bit....

[Bradley in DC]

Thanks. Glad I got that FDIC-insured gold-denominated bond with everbank.com!

[jonahtrainer]

Thanks. Glad I got that FDIC-insured gold-denominated bond with everbank.com!

There is still counterparty risk. You know there are $4.2T of insured deposits backed by $50B of reserves? That means you'll get about 1.2% (of purchasing power) back in a crash.

I keep my bullion coins and GoldMoney.com. It has no counterparty risk because of allocated storage. Also, there are no time limits like with traditional CDs. I can sell the gold 24/7 and have the proceeds in my bank account in 1 business day.

Food for thought.

[jonahtrainer]

Is there any thought that todys spike might go down a bit? I was gonn buy today but I wanted to wait till tommorow to see.....any thoughts? I relize overall its on its way up... I figure the CBs will want to sqush this down a bit....

CBs will have a difficult time because they have sold 475 of 500 tons so far this year. In addition, gold is still relatively cheap, entering its strongest seasonal period and coming off some serious financial turmoil. I think it is a strong buy. Silver is priced even better and my Dec 13.5 Call options are already up 100%.

[Kregener]

Paper "wealth" is going to be worthless in the not-so-distant future.

[fluoridatedbrainsoup]

I'm too poor to buy gold, so I strictly accumulate it thru the use of a metal detector on beaches. I am spiritual about the use of a metal detector and also view it as an extra-sensory perception.

[Man from La Mancha]

I'm too poor to buy gold, so I strictly accumulate it thru the use of a metal detector on beaches. I am spiritual about the use of a metal detector and also view it as an extra-sensory perception.

Silver

.

[Cam]

Is there any thought that todys spike might go down a bit? I was gonn buy today but I wanted to wait till tommorow to see.....any thoughts? I relize overall its on its way up... I figure the CBs will want to sqush this down a bit....

Gold goes thru yearly cycles due to the Holiday seasons in the US and India. Look at a 5 or 10 year chart and you will see Gold gaining in late Summer thru Fall and drop in the spring. Will this cycle continue? Who knows, but Fall is usually a bad time to jump into the gold market. Do your due diligence!

Yes, I do love GOLD and SILVER! They are great hedges against inflation and times of turmoil.

[Pedro TT]

I keep my bullion coins and GoldMoney.com. It has no counterparty risk because of allocated storage. Also, there are no time limits like with traditional CDs. I can sell the gold 24/7 and have the proceeds in my bank account in 1 business day.

Food for thought.

Wow I've been looking for EXACTLY that. I never could find a place to simply buy and sell gold as I pleased.

[Bradley in DC]

There is still counterparty risk. You know there are $4.2T of insured deposits backed by $50B of reserves? That means you'll get about 1.2% (of purchasing power) back in a crash.

I keep my bullion coins and GoldMoney.com. It has no counterparty risk because of allocated storage. Also, there are no time limits like with traditional CDs. I can sell the gold 24/7 and have the proceeds in my bank account in 1 business day.

Food for thought.

Thanks, I'm a big fan of GoldMoney and James Turk and second your recommendation. I also like interest on my deposits.

[RP4ME]

Thanks. Glad I got that FDIC-insured gold-denominated bond with everbank.com!

Hey Bradley - can you explain this Bond and its benis? Thnks