Next Level: GOLD $1,350.00

Ian nervous as heck. This kind of a run up feels a little like "irrational exuberance" or the central banks are nervous as heck....neither bode well.

 

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gold record high at $1,134.20 an ounce. silver high at $17.91.

 

Wonder if the president going to China to ask them for money will have any effect on gold? They have been trying to buy all the gold they can get their hands on.

As I said before, I expect a very sharp spike in the near future, and I'm not about to sell any of mine now.

All this just my gut feeling though.

Chuck

 

now record is $1,144.30 per ounce.

 

I've been trying to figure out the money supply side of things. Of the $700B from the bailout/stimulus/whatever, not all of it has been used, and a decent chunk of it has been paid back. AIG is planning on paying back the majority of its $182B in the relatively near future. The question is, as these funds are paid back (with interest), is that money pulled out of circulation, or do we keep recycling it and keeping the money supply high? Are we going to run into inflation with low interest rates, or will it not happen until we see an uptick in rates?

At this point, the gold run-up seems like speculation to me. People are hoarding gold because, depending on how the money supply is handled over the next few years, being priced in at say $1200/oz could be a spectacular bargain. At the same time, its not so high that there's a terrible downside. I would think - until there's some evidence of inflation, it can't go much higher than it is now based on future speculation. Maybe about $1400-1500 at a cap - again, until we run into inflation.

 

Factors running up gold today included a statement by Blackrock group that they thought central banks would be net buyers of gold in 2010. Blackrock is a highly respected investment group.

Also, a report by Bank of America indicating that emerging market currencies in Asia, South America and Mexico may be undervalued by as much as 15%.

Quiz: Guess which currency is estimated to be undervalued by 15.5%?

Also, although gold is over $1100 India is entering the height of the wedding season from now through the end of the year and they expect good consumer demand.

As well, once the rally started today, there was some serious short covering.

Lastly, investment demand for gold as a long term investment/diversifier is growing.

Where will Gold top out? Don't know..but watch the dollar and the health of the global economy. The healthier the world economy gets, the worse it is for gold since it removes uncertainty. On the other hand, if you have stagflation, which is crummy growth with rising interest rates, gold should prosper. Bernanke made a statement today he didn't expect interest rates to change for "some time". That is an indication that a weak dollar and low rates will be around for months which could be very good for precious metals.

 

I don't think the tarp money was ever in circulation, which is why the economy hasn't been stimulated. The theory is that the more cash and checking account deposits there are (the money supply), the more inflation there will be. It assumes that if you get some extra money you'll spend it. But you might not spend it, you might use it to pay down your debts. Some banks didn't need or want tarp money, but they were forced to take it. The policy of credit garvage is ostensibly suppose to stimulate the economy. But when people borrow money to buy things, they have payments to pay it back. Because they're making these payments they have less money to spend. Take cash for clunkers. Its been hailed as a rousing success because new auto sales went up one month. But the people that bought a new car with cash for clunkers are people that had a running car that was paid for, and now they have a new car with payments. This is suppose to stimulate the economy. If the easy credit worked, and people did borrow and spend more, there would be inflation. The problem is that people are in debt. The solution is for them to get further in debt.:desk: No matter, the end result is the same, the dollar gets weaker, gold goes up.

 

since december 31, 2008 to present:

PALLADIUM $183.00 to $382.00 - up 108.7%

SILVER $10.79 to $18.49 - up 71.4%

PLATINUM $898.00 to $1,470.00 - up 63.7%

GOLD $869.75 to $1,144.30 - up 31.6%

silver predicted to reach $25.00 next year. gold at $1,500.00

 

Is this a correction, or speculation?

 

Gold hit all time record high in tokyo. Open high at $1,145.30 an ounce.

 

GOLD:
2001 - $276.50
2002 - $347.20 + 25.6%
2003 - $416.25 + 19.9%
2004 - $435.60 + 4.6%
2005 - $513.00 + 17.8%
2006 - $632.00 + 23.2%
2007 - $833.75 + 31.9%
2008 - $869.75 + 4.3%
2009 - $1,134.75 + 30.5%
2001 to 2009 up 310.4%

SILVER:
2001 - $4.520
2002 - $4.665 + 3.2%
2003 - $5.965 + 27.9%
2004 - $6.815 + 14.2%
2005 - $8.830 + 29.6%
2006 - $12.90 + 46.1%
2007 - $14.76 + 14.4%
2008 - $10.79 - 26.9%
2009 - $18.10 + 67.7%
2001 to 2009 up 300.4%

2009 both gold and silver prices are dated as of london last close yesterday.

 

I saw a comment in another thread by someone wanting to know why silver was lagging behind. It's looking pretty good to me, running neck and neck with gold, and actually doing better in 2009.

Thanks Elaine!

 

Gold hit again all time record high at $1,150.30 per ounce;

silver erase this year high at $18.88 per ounce. Up 75% since dec. 31, 2008.

 

I swear, everytime I sleep and wake up, gold is at an all time high...

It's surreal....:rolling::rolling:

 

Now you predict the future!

At this rate you will have to start a new thread (new title) if gold rises above $1350/oz.

 

thanks krispy for correcting the date. i am sleepy i guess. well. i will change a new thread. but for the meantime. i think still very far. they are pushing the gold to $1,200.00 to meet the December expiration at the commodity exchange. i don't know about commodity exchange.

 

gold high - $1,153.90 an ounce. silver hgih - $18.88.

 

CT really needs a live market PM ticker in the side bar columns.

 

I think I'm using a vista gadget from kitco. I have yet to find a really really nice PM gadget that shows gold,silver,platinum and palladium. And updates it within a 5 min. period.

 

A Kitco gadget on CT would be my preference if possible.

I proposed the idea in the support & feedback section, so at least it's proposed to the folks running things here for consideration, though they've likely already considered the idea themselves in the past. Still would be nice to have one.