Next Level: GOLD $1,350.00

Currently:

GOLD @ $1,185.00/oz. High so far $1,185.10
Silver @ $18.80/oz. High so far $18.82
Platinum @ $1,745/oz.
Palladium @ $551/oz.

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I asked about the NYC's weekend terror as a possible event, but I also failed to mention the oil disaster down in the gulf....

I was reading up on how bad it is, and I'm not entirely sure many people know how how bad this mess truly is....

I for one just took it as another disaster that will get cleaned up but this thing is spewing oil like there's no tomorrow and we don't know how to stop it....

 

I was actually thinking about the oil spill when you asked a few days ago about / expressed thoughts about investing in oil, but I didn't think the timing of the question and talk about investing in oil might be worth having until more is known about the effect this spill will have on the industry now this year. This is a big accident looking at the detectable spill known on the surface and seen from satellite imagery, but the extent of the problem is literally deeper and will keep unfolding in magnitude. Remains to be seen how long the unseen problem will remain in the mainstream media coverage. Maybe if it effects the oil market or the Obama administration changes its tune about off shore drilling then maybe it will remain in the news.

 

I'd say from certain news media it will be the cover story longer to fit their agenda, while others are looking for any story to change the subject. The NYC event is a good excuse to divert chatter about the oil incident...

They're talking about billion dollar fishing industries shutting down. All the coastal businesses that rely on a healthy coast for tourism, food etc etc, all shutting down....that would put a huge damper on the economy down there and it would probably trickle up to the Northeast and out West...

The Earth is bleeding badly, we stuck a needle in her and she's just gushing out blood....

 

Good news for clean up companies and green tech / alt fuel sources...

Also, shrimping in India, Vietnam and Thailand... other places in the world will be able to sell product for more now that the Gulf has had it's season swept out from under them...

Currently:

GOLD @ $1,188.20/oz. High so far $1,188.60
Silver @ $18.86/oz. High so far $18.87
Platinum @ $1,747/oz.
Palladium @ $551/oz

 

lol, I hadn't thought about fishing in other countries. Good for them, they are going to make a HUGE profit...

Wow, just when we were trying to pick ourselves up, now we can't even buy our own brand of fish!!!


I was just going to post the $1,188 as well....eye popping!!!

 

I think Costco regularly sells shellfish from the Southeast Asian markets for quite some time. Maybe they will be the only ones with distribution in the US who can keep prices on these products down in the US.

 

Currently:

GOLD @ $1,188.60/oz. High so far $1,189
Silver @ $18.86/oz. High so far $18.88
Platinum @ $1,745/oz.
Palladium @ $551/oz

 

Perhaps someone can explain this currency widget that I have on my Windows 7.

It shows USD at 1.000 and CAD at 1.013


Does that mean:

1) Canadian dollars is worth more than USD?

2) It takes 1.013 USD dollars for one Canadian dollar?

 

I don't think this weekend's NY bomb event will have any effect on much of anything except maybe it's something else the mass media will harp about for days without saying really anything. There are to far far more important events relative to the price of gold, IMO, and they bear watching:

1. The Euro. The ECB broke it's own rules this weekend in regards to bailing out Greece. In reality, it was a bailout of the French and German banks that loaned them all the money in the first place. Long term, and even short term, it's simply not good for assets denominated in the Euro.
2. The Oil Spill. Obama has said that BP has to pay to clean up the entire mess. If he holds them to this, it will either bankrupt BP and/or the insurance companies, i.e. the finance industry again, which will cover their losses. These amounts could eventually reach the stratosphere in terms of claims. I suspect the amounts of oil pouring out of those holes more than a mile down are far higher than they are admitting to.

It's the same issues that always push things off the cliff. Oil issues and central bank gaming the system for the bankers. I personally think the issue with the Oil spill is going to be huge and damaging before it is all said and done.

 

Currently:

GOLD @ $1,187/oz. High so far $1,189
Silver @ $18.78/oz. High so far $18.88
Platinum @ $1,731/oz.
Palladium @ $547/oz

 

How do you feel the oil spill will effect metals commodities, such as Gold, per this threads topic?

 

There's actually 3 different things going on which could be affecting the price of gold. The bailout of Greece, the bombing in NYC and of course the disasterous oil spill that is ruining ppl's livelyhood as we speak.

Which one affects the price more is anyone's guess but the oil spill would be my guess. Nobody knows how big of a disaster this oil spill will create but we all know it will definitely move the price of gold upward. I always get excited when gold moves on up but not due to a disaster of this magnitude. Unfortunately gold moves up in times of uncertainty. I wish it was different but "that's just the way the cookie crumbles". Remember that saying?

 

I see no reasoning in your reply for which you quoted my prior inquiry...

 

Well let's be clear, the bomb attempt.....because if the bomb actually went off, I think fear would have been at an all time high with the national alert level set to high.

I think just the cocktail of recent events (greece/oil/NYC) is adding up to rise in prices....who knows which one is factoring in more...

But if we have all invested in PM's prior to this and are seeing "some" benefits, then we have nothing to apologize for. While everyone is is concerned about American Idol contestants and how to save Lindsay Lohan, we're all doing the right things for our families and investing into the future!!!!

 

why does an oil spill cause PMs, specifically to this thread, gold, to rise? are investors flocking out of oil for an alternate commodity with upward potential and little risk of loss, gold? is that the answer in a nutshell?

 

Probably perception?

So say you own oil stocks, doesn't even have to be BP. It could start to drop from bad PR, so you flock to another commodity maybe even temporarily. This could cause PM's to go up, then when the coast is clear, they can jump back into oil, like when another earthquake happens and everyone forgets about the Gulf....

But you could also say that due to this incident, oil prices could rise significantly since so much is being wasted...that we could see $120 a barrel oil....

I just really don't know....???

 

It won't have much to do with the price of oil. The issues will be in the costs to clean this mess up. If BP is faced with a $100B bill for the cleanup, then it will be the British finance industry that will have to cover the losses. Given that BP = British Petroleum, this means a pile hurt to the British economy which is already going into the toilet due to debt issues, this is going to push more investors there to move their money into something else. Basically they have the $, the Euro, or Gold.

 

Being pun-ny eh?

 

LOL no pun intended! I swear I had no idea I was typing it that way...ha!