Gold Futures Advance to $1,000 an Ounce Amid Dollar Weakness

[FarCenter]

Source: Bloomberg

By Nicholas Larkin, Halia Pavliva and Kim Kyoungwha

Sept. 8 (Bloomberg) -- Gold futures rose to $1,000 an ounce for the first time in more than six months as a weaker dollar boosted the metal’s appeal as an alternative investment.

The contract for December delivery reached $1,000 on the Comex division of the New York Mercantile Exchange, extending this year’s advance to 13 percent. Gold for immediate delivery touched $998.25 an ounce. Gold has rallied every year since 2000.

Governments cut interest rates and boosted spending to fight the worst recession since World War II, spurring investors to buy bullion as a hedge against potential inflation and debasement of currencies. The Dollar Index has lost 4.1 percent this year. Gold typically moves inversely to the U.S. currency.


Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=axLokxc7QiEM

[CountAllVotes]

1. too late to stock up on gold now

recommend in any event! :)

:dem:

[Psephos]

2. Trading pieces of paper from the govt. printing press for lustrous tangible gold

How much longer can that scam last?

Time to buy before the rubes catch on.

[mace77]

3. Gold becomes money...thanks to the government

We have $11 Trillion in debt today, accumulated since the 1950's. We will borrow another $9 Trillion during this administration.

So the annual interest payment will go to 4% x 20 Trillion = $800 billion a year.

Does it really make sense to pay 1.5 X the Pentagon budget every year in INTEREST to China, Brazil and Saudi Arabia?

But hope they give us the privilege of sending $800 Billion a year in our tax money to our creditors. If they refuse to borrow, we have to jack up interest rates to 10% and that crashes the recovery. Or the Federal Reserve takes fake dollars, aka American pesos, and buys the debt.

Either way....Gold becomes not just the best investment but the only recognized store of value. The private global market will crush the Government fiction called the USD, the greenback. "... Worthless as the Continentals" the founding fathers would say.

[azygous]

4. One reason gold has zoomed

Check this out. http://www.kitco.com/ind/Nathan/aug312009.html

Everyone was puzzled as to just what caused the gold price to suddenly go up. It appears the IMF may be responsible. The article is long and a tad technical, but the short of it is that the IMF is now a new source of inflation. China was seriously after them to do just this very thing, by the way, but this article doesn't mention it. Here's an excerpt that cuts to the chase:

"The ability to inflate has now been augmented. It has transcended national boundaries from national central banks to a world central bank. This "new" bank now has the power to create money. Inflation is no longer limited to one currency but will affect all paper currencies in the world. We now have the prospect of a synchronized international inflation. It's not enough that citizens throughout the world had to keep a keen eye on their nations central bank, now we all need to keep an eye on the IMF. "

Everyone wants gold now in order to protect the value of their savings from deteriorating. But the political ramifications of this could prove stunning. This significantly changes the whole game plan. It's called "One-world government." I can think of lots of people who might find that concept pretty damned alarming.

[BigBearJohn]

5. and everybody sits around chewing on popcorn

[Odin2005]

6. The Libertarian nuts driving up the price again?

They always think hyperinflation is immanent. Bunch of morons. I hope they lose their shirts.

[Psephos]

7. "immanent" is actually a religious term

which adds an ironic flavor to your post ;)

[TheWatcher]

10. It doesn't make it any less ignorant though.

[Odin2005]

12. Libertarianism is the Religion of the Invisible Hand.

:P

[4sanity]

8. Gold?

I have been investing in silver for over 10 yrs now while my buds were into stocks. They told me I was nuts and why would I be so careless with my retirement money. I answered with 3 words: "because it's real". Well my silver has tripled in value and their stocks are not just in the toilet, they are in the sewage treatment plant. By the way, silver has outperformed gold on a more than 2 to 1 ratio during that time frame.

[fascisthunter]

13. I Have told family and friends of mine to buy silver

just take a small amount of each pay check and buy silver. I told them in the long run, they will profit, because it is a finite resource. I have been buying silver now for a few years, collecting coins for more. It's a fun hobby, and a way to invest in my future.

[lovuian]

9. I wonder how much Gold we have in Fort Knox? Anybody know?

http://www.youtube.com/watch?v=OHw9RLDJmro

an Independent Auditor would be nice

if America has tons of gold what do we have to worry

but did somebody rob the piggy bank?

[Roland99]

11. Nothing left there. It was all moved to NY years ago.

[Nihil]

14. And some of it back out again nearly eight years ago. (n/t)

:think: