Gold futures rally above $1,500 an ounce

[Roland99]

Source: MarketWatch

Gold futures rallied above $1,500 an ounce on Wednesday, trading at a record as the U.S. dollar fell sharply and investors bought the precious metal as a hedge against fears of inflation and economic uncertainty.

Gold for June delivery GCM11 +0.65% rose $6.60, or 0.4%, to $1,501.60 an ounce on the Comex division of the New York Mercantile Exchange.

It earlier traded as high as $1,506.20 an ounce, according to CME Group, which owns Comex. That is a record intraday for the metal. Gold hit intraday and settlement records on the previous session and reached such milestones on Monday and Friday as well.

The weaker dollar, European sovereign-debt worries and Standard & Poor’s move Monday to cut its outlook on the U.S. sovereign rating all have all spurred appetite for gold.

Read more: http://www.marketwatch.com/story/gold-futures-move-higher-silver-gains-2011-04-19?link=MW_home_latest_news

[Juneboarder]

1. Metals...

are just going to keep going up and up and up... Nothing in the market is occurring to correct itself; thus the metals will continue to increase. Watch the silver more than gold, though. It's a lot cheaper, but percentage speaking, it increases on a much larger scale.

Love my metals...

[doc03]

2. Gold didn't rise the dollar is falling. Silver is the one that

is taking off.

[Poll_Blind]

3. I'm not sure I understand what you mean by that. Can you elaborate?

PB

[doc03]

4. It takes more dollars to buy the same amount of gold so

the dollar has less buying power. For the same reason they raised auto prices, it takes more dollars to buy a ton of steel. All commodities are becoming more expensive.

[Poll_Blind]

5. Sorry, I was being obstuse: I mean about silver.

Do you just mean percentage-wise that it's taking off?

PB

[doc03]

7. Yes percentage wise, I don't know why but it is. Silver took off

like that back in the 70s and a lot of people lost their shirts. Silver spot $45.35, it was under $40 just days ago.

[Po_d Mainiac]

10. The percentage of silver to gold in the Earth's crust is 17:1

Historically that was the exchange ratio.

Comstock changed that briefly. Today, industrial silver usage accounts for a large chunk of current mining capacity. Add to that, the flee from fiat currencies as various CB's attempt to print wealth back into their economies.

There is little comparison to the Hunt Bros. attempt to corner the Ag market and today, other than the Hunt's saw the future of Ag in electronics but underestimated the amount held in India's vaults.

[Dokkie]

6. I have been waiting for

gold to dip in price before jumpin in and everything I think its going down, it rebounds

[avengemydeath]

13. november

[Terry in Austin]

8. Those blasted speculators!

Speculators and Big Metal are definitely in cahoots -- that's the only reason that gold prices are so high. We need to put limits on speculation to stop this gouging. It only costs $558 to get an ounce of gold out of the ground, and now we have to pay $250 apiece for wedding rings. Outrageous!

[Po_d Mainiac]

12. The fees for divorse lawyers goes up at the same rate. n/t

[BobbyBoring]

9. If you don't have a lot of dough, silver is the way to go!

Since 2008, silver has gone from around 10.00 and oz to the high 40s meaning it's quadrupled. Golds gone up a lot too but not as dramatic.

[gratuitous]

11. Oh goody, another bubble

And when it bursts, and peole are sitting there with their $10,000 stacks of precious metals now worth about $3,500, they'll wonder what happened and how it could have cost them so much, and where did their $6,500 go?

[Po_d Mainiac]

14. yeah, the bubble is t-bills,,,,WTFU...n/t

[Fool Count]

15. The only ones who'd be wondering what the hell

happened to their money will be the poor souls holding the bundles of the worthless US currency. They will be thinking to themselves - why didn't they tell
us that printing loads of that crap to cover unsustainable deficits was going to affect its value? The only consolation will be that the Chinese did even worse.

[Endangered Specie]

16. Gold is still not, adjusted for inflation, at its all time high (reached in the 70's)

Gold is also historically a poor investment vehicle, over the long term (volatility of the stock market but CD level long term gains)