Gold is going through the roof

[Flabbergasted]

Since 2000 Spot Price of Gold has doubled. Since September there has been a dramtic rise.

http://www.deloitte.com/dtt/research/0,1015,sid%253D1000%2526cid%253D97272,00.html

http://www.kitco.com/weekly/paulvaneeden/jan232004.html

Do they know something we don't?

[BrklynLiberal]

1. Yeah. The USD is going to be worth crap.

[Flabbergasted]

3. Something altogether is wrong with this

I'd bet the bank their obscuring things.

The stock market goes up to 11,000 while there is a huge surge in gold as well.

[unblock]

5. well, in the same time period, the market has gone sideways

we've had about 6 years of essentially sideways activity, which is a long time for nothing all too exciting. the u.s. market has NOT been prospering under the shrub regime.

now, russia, latin america, europre, india, china, etc., that's another story. they've all been doing great because easy credit and offshoring makes for major expansion overseas.

[Name removed]

8. Deleted message

Message removed by moderator. Click here to review the message board rules.

[napi21]

2. Concern about the US Dollar?

I'm sure no expert in this kind of info, but I read somewhere that some ME country is getting ready to switch oil from the USD to the Euro in the next week or so. I guess that will make a very big mess of things. When investors get nervous about stock and cash, they usually go to gold (I think.)

[Flabbergasted]

4. Iran but I didn't know there were any certainties on that

[BrklynLiberal]

6. That was supposedly what Saddam was planning to do, and one of

the main reasons Bush wanted to take him out. How ironic, if now one of the other oil-producing countries does it anyway.
All those lives, all that money, all that BushCo effort.....for naught.
I think I am going to puke.

[Clark2008]

14. And thus the dreambeat for war with Iran begins.

This is exactly why we went to war against Iraq: Saddam was going to switch the oil markets in Iraq from the US Dollar to the Euro.

[BlueEyedSon]

13. The new Iranian oil bourse will trade oil in euros, insead of dollars.

That's why we have to blow them up.

[Flabbergasted]

15. This is still speculation but still likely. It could take years?

I didn't read any specific plans or dates.

[BlueEyedSon]

17. This guy is a DUer IIRC

http://www.energybulletin.net/7707.html

[KoKo]

21. An EXCELLENT READ! Some of us have seen this before, but it's good

for "perspective." And I replied to that article with my own theories...about what it all might mean?

Anyway...folks should read that article..it's Soooooooooo Important.

[Jemmons]

16. The price of gold skyrocketed

As Niall Ferguson wrote (about the unlinking of dollars and gold): "The price of gold skyrocketed, which is the same as saying that the price of the dollar plummeted."

Re. petrodollars and petro-euro, there is a lot of info at:
http://baltimorechronicle.com/2005/102805Clark.shtml

[CJCRANE]

7. CHINA?

http://www.chinadaily.com.cn/english/doc/2004-12/10/content_399296.htm

"China refuted rumours on Friday that it had been dumping US dollar-denominated assets from its massive foreign exchange reserves..."

[ClintonTyree]

9. I bought 6 ounces at $380 a few years ago...........

that investment is starting to look pretty good right now. I didn't buy it to make money and probably won't sell it even at it's current price. I bought it as a hedge against a worthless U.S. currency and that's starting to look like a distinct possibility as well. To tell you the truth I wish the price WEREN'T rising so fast, it would allay my fears of the "bush economic miracle" getting worse. :eyes:

[cliss]

10. Actually......it's worse than that.

Gold value is typically seen as a harbinger of war*. I was interested in investing in gold a few years ago.

The person I talked to said that "gold is seen as a last-resort investment; it should be used only when the world situation starts to get very shaky". It's considered a "negative" investment vehicle. Unlike real estate, which will continue to go up in value, or say stocks. Gold goes up because of uncertainty.

Real estate & stocks go up; that's seen as a good thing. Gold goes up, and everybody starts sweating.

And yes, you're right. My investor friend said the REAL investors, the people in the know, drive the markets. I'd say they know something I don't.

*or market and political uncertainty

[StClone]

11. Stagflation and U.S. printing more money

Lots of intetresting stuff in India Daily Business section.

http://www.indiadaily.com/breaking_news/55700.asp

[BrklynLiberal]

12. Adorable furbabies....

[brokensymmetry]

18. You mean you DON'T know????

Seriously?

Let's see...what might they know...

The U.S. central bank - i.e.,the Federal Reserve - has been and is pumping out money as if there's no tomorrow. Now they've quit publishing M3 so they can hide the magnitude. Furthermore, other central banks around the world are also pumping out money.

The U.S. trade deficit is a disaster. It's getting worse.

The U.S. budget deficit is a disaster. We added a trillion (with a T) dollars in the last 18 months. It's now at 8 trillion dollars, merely for the direct deficit and not counting various commitments such as Social Security. It's getting worse, the Chimpster's representations notwithstanding.

Peak Oil is upon us. Peak Natural Gas has hit North America. This is not good for the U.S. economy.

The war in Iraq is an expensive disaster.

The drums of war with Iran are getting noisy.

The U.S. stock market is overvalued; we are, by any historic measure, due for a decline of at least 60%.

The U.S. housing market is grossly overvalued. Low quality mortgages, guaranteed by FNMA, represent a large call on the resources of the federal government. The housing market is now a greater percentage of GDP than is healthy by a large margin.

The U.S. Pension Benefit Guarantee Corporation is badly underfunded. If General Motors declares bankruptcy (!!!), the taxpayers will have a large burden to shoulder, suggesting more monetary inflation. Note that China will start bringing cars into the U.S. in 2007, adding pressure to Ford and General Motors.

The money that should have been reserved for Social Security hasn't been. Meaning that federal deficits are set to explode upward.

Historically, people in China and India have acquired gold. As people in those nations become more affluent, they can be expected to buy more.

Finally, the monthly chart for gold is coming off a decades long head and shoulders position.

Notice that most of the foregoing has been discussed right here on DU.

Oh, yes - gold is going higher. And God help those trying to survive at the bottom of the economic heap, 'cause King George certainly won't.

[Warpy]

19. Yeah, they know we're in for another round of serious inflation

because gold is always the greatest hedge against inflation. Gold stays pretty even in purchasing power no matter what fiat money is doing, inflating or deflating.

Anybody with any wits at all knows the present system is unsustainable. People are betting on inflation versus deflation right now, and that's why the price of gold has shot up so quickly. It seems like a pretty safe bet, what with Stupid thinking he can just print more money when there's another war he wants to buy for himself, the cost of energy being bid up by formerly non technological, third world countries, and the almighty dollar itself sinking against currencies that don't have trillions of dollars of low interes debt behind them. All of these factors are going to combine to make everything we use much more expensive, at least in the short term.

We're about to live in interesting times, I'm afriad.

[KoKo]

20. The posts on this thread show the Giant Worldwide ChessGame going on

between the Powers of the World realigning themselves, playing cat and mouse and hide and seek....but most of all a Giant Chess Game over currency, power and domination.

It's the only thing that makes sense as to the strange behavior of Bush/Blair "joined at the hip." Blair has been dragging his feet on joining the EU....Bush pokes fun at the French and Germans and has his RW ridiculing them; Austrailia joins Bush and Blair and Spain (until their people rebelled); China and Japan buy our Treasury Bills (all the while keeping their hand in the game) while Poppy Bush (Ambassador to China way back) has alliances he uses and promises to give. We have Russia and Putin sitting back watching to see the power play while Bush takes care of Russias more radical sattelites and then we have Turkey defying Bush but trying to join the EU...We have Canada on the sidelines, but in a pinch will go with Bush/Blair/Austrailia and the Saudi's if that were the alliance. China and Japan watch each other cautiously while they both buy treasuries and gradually take over our debt. India benefits from our outsourcing and Bush supports Pakistan making Musharif his buddied while pouring money in there for arms...and Poland, Yugoslavia and the rest try to get into the play by providing troops to Bush/Blair for their coalition.

I could go on with my ravings...but the pieces of why we all haven't been able to understand how Bush and the rest are such incompetent fools are coming into place in my mind. It's a huge realignment and grab for power over oil and Euro pitted against the dollar and the countries of the world are jostling each other in this power play...getting their pieces on the game board and sizing up each other.

The wild card is South America in all this. Bushies don't have time to deal with SA given they are so busy elsewhere.

China is the big deal in this. They are the Powerhouse...Bush has lots of connections there...but they have a civilization older than the Bushies and their NeoCon buddies.

How will this all play out? The think tanks for the Repugs do "war/power games" on this the way most Americans use their X Boxes to play video games.

I hate to think about it anymore...but it seems that we who are political need to be thinking about how we are going to deal with this. I see World War III coming...when one looks at what's going on and thinks of the Scowcrofts/Kissingers/Bakers/Clintons/Carters and all the rest who might have seen this coming but like "Big Daddy" didn't think the American people should know about the big World Wide Chess Game over Oil and Currency Dominance.

:tinfoilhat: ????

[OneBlueSky]

22. that means oil's not far behind . . .

the price of gold and the price of oil have risen and fallen in concert for years . . . if the price of gold is skyrocketing, the price of oil isn't far behind . . .

[Flabbergasted]

23. Never knew that and oil is over $64 a barrel

[OneBlueSky]

29. "Gold Boiling in Oil" . . .

http://www.zealllc.com/commentary/goldinoil.htm

[Jemmons]

24. The price of oil is linked to Iraq

Recent analysis says that China demands are not to blame for recent high prices. China demand was factored in way before the price went up. Also the producers reaction is significant: Had it been deemed an effect of high and sustained demand, they would have reacted by starting up production in the high cost production segment. As they se it as linked to unstable production in Iraq, which might soon get back to full production, no such steps are being taken.

[Glidescube]

25. It's the housing market....dadada

The housing market will not pop but will deflate like a tire with a nail in it. Investors know this and are looking for other opportunities. With the stench of the dot-com burst still lingering around Wall street and the the Brain-dead Texan driving the dollar into the ground, this affect T-bills and the like. Energy price fluctuating like a roller coaster and this makes investing in even mighty China less than optimal. So now these investors are looking for a place to put their money and gold seems to be it.

[Jeffersons Ghost]

26. or is it that the US Dollar is going through the floor?

I heard last night on TV that reports of dismal Christmas sales made trading on Wall St. sluggish.

[ComerPerro]

27. The economy is tanking, and 1/3 of the country is still terrified

that they might die tomorrow in a terrorist attack.

They grasp onto whatever makes them feel safe and secure.

For some people, that includes the myth that George Bush is a decent man who can keep them safe.


Being conservative means constantly holding conflicting views.

It is impossible to honestly hold all of their beliefs at the same time.


If the economy is so great, why are you buying gold? If the economy is bad or not as strong as you would like, why do you still support failed Bush policies?

If we are at war and threats to America loom in every shadow, then how can you contend that Bush is keeping us safe? Conversely, if Bush is in fact keeping us safe, then what the hell are you so afraid of?

[midnight armadillo]

28. 18% return in 4 months on my gold investment

My 401k has a new 'self-directed account' feature, where I can buy any stock or mutual fund.

In November, to try out how it works, I put $750 in the Central Fund of Canada, a gold fund. That's now worth $916.25, a return of 18% in just 4 months. Not bad!