Next Level: GOLD $1,350.00

Well, Apmex has indeed relisted 2009 AGE 1 oz. coins for sale today just after fools_gold and I were discussing the likelihood yesterday that they weren't actually out of stock. They have apparently increased to $90 over spot and this morning had approx. 1,287 pieces available.

And a great big thank you goes to Yankee for replenishing their stock! :goofer:

 

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While I agree that Gold could go up without the dollar going down, it would require some kind of incredible increase in consumptive demand or some wierd drop in supply (mining) that would drive gold up and not be tied to Gold as a reserve currency/inflation hedge.

 

You know, I was wondering what it would take for the average person to shift their thinking on the USD value. And sadly, I think it would take A LOT. In fact, all the Fidelity commercials you see on TV would have to be "buy gold". Bernanke would have to say "buy gold"... HSBC would have to replace their CD and online savings bank commercials with "buy gold".

I can't even convince my friends who are engineers to buy gold.

I think the mass are actually ok with using inflation as an excuse to pay higher prices as "that's just the way things are". And leave it as is..

As a teenager, movie tickets for me were $4.25, they are now $10. And it hasn't stopped anyone from going to the movies...

 

I think you have to back to WHY would you buy gold. Short of the few industrial applications it has, non-investment demand is jewelry. So investment demand is there simply because people think it will go up in price.

What would make it go up in price...either supply/demand imbalances (which my early post would suggest would need to become very unbalanced for gold to to reach $2900) or investment demand -- again as a store of value...not a REAL generator of wealth.

 

Fandango.com charges a $2 "convenience fee" for buying tickets online and some theatres here in the NYC area charge $12.50/ticket. Imax movies cost more and wasn't the Michael Jackson movie "This is it." movie originally selling tickets for $50-ish? :rolling:

 

I treat myself to some IMAX movies that I really consider worth it. I think around me it's $16 for a ticket. I wasn't aware MJ's movie/documentary was going for $50 that's just insane....

I admit even at these higher prices they are still affordable. But what happens when the average movie is $50!!!?

I stopped going to sports games because I just don't want to pay over $10 for a beer....I used to pony up because I loved the atmosphere of live games, but no longer. And it's a loss for sports teams who can't count on me to make any money off of anymore...

 

Is it really higher or are the numbers larger? You have to look at things in REAL terms.

 

This could be a long list of high priced things like: entertainment, consumables, services, etc... perhaps celebrity performers and athletes make too much from ticket sales let alone from marketing opportunities all paid for by the customers/attending public. Ball park beverages, tickets, live music event tickets, etc. etc. are very, very expensive when it comes to mass market... Access to one's own money based on convenience ala ATM fees and credit card interest rates are getting higher too... it's a lot of work not to just shovel your money away. :goofer:

 

I don't comprehend...??

I'm not sure if anything is getting cheaper? I'm sure that list is quite small... It's funny because I battle myself a bit with certain things. I have no problem with athletes making whatever they can if SOMEONE is willing to pay for it. But my issue with that is, sports organizations really aren't paying for it, or all of it, they pass it onto the fans who have no say other than to just stop going to the games like myself.

When I see ridiculous salaries thrown around, players who barely play one season and have a contract of $40 million and then get sent down to the minors because they suck, now that bothers me because I know the fans will somehow in some way pony up for that cost.

But enough rambling, and I don't want to get too off-topic from this thread...

 

ANYTIME! APMEX is more then glad to buy Eagles from me at a wopping $20.00 over spot!. When I try to sell to anyone else they want to pay me below spot.

 

How does that compare to what you could get for them if you sold them one at a time on eBay Yankee?

 

REAL terms meaning adjusted for inflation. If you make $10/hour and a ticket cost you $10. If your doing the same job 10 years later and making $20/hour and the ticket costs you $20. In REAL terms, it doesn't cost more...even though it may feel like it. Since Gold is often used as a STORE of value, if you put the $10 you earned into Gold and 10 years later that same gold could/should be worth $20 or 1 ticket. You haven't made anything but you have lost anything (like if you had put the $10 bill under your mattress).

Since GOLD in and by itself has limited use, doesn't get consumed, but 'stored' as jewelry or bullion, for the price to move independent of inflation or currency fluctuations ('bad') a change in the supply or demand (for storage purposes) has to occur.

 

Oh thank you, now I get it. Yeah I suppose that's a good question. Let me see if I can recall what I made as a teenage selling paint at a department store...I think I was making the min. wage of around $6.25 at the time. Heck, it might have actually been lower!? And I'm pretty sure movie tickets were around $4.25.

So at today's min. rate of $7.25 with movie tix at roughly $10, the wage hasn't caught up. But hasn't exactly taken off either, I still think it's in close range not to make too much of a big deal.

But if we are talking $16-20 for a movie ticket down the road (not IMAX) and min. wage is still $7-8, then anyone on min. wage just simply can't catch up.

Also, I'm not sure about this, but I'm not fairly certain that high ticket prices are the result of inflation either. They could just be the movie studios paying top celebs way too much money for a film and making the people pay for it...

Movies like 300, Paranormal Activity, Blair Witch, The Passion of the Christ proves you can make very successful high grossing films without your Tom Cruise or Bruce Willis being in them...

 

Mr President, flanked by Mr Vice President, is on Bloomberg TV Live right now talking about the Job Summit... now let's see what/if any effect there is on PMs over the next couple hours before the US markets close. Gold high today $1,221.50/oz. and currently at $1,217.70/oz.

 

What does this mean to the value of USD and gold/silver? Does this take USD out of circulation and therefore increase the value of USD?

Thoughts? Or is $45 billion so little compared to the TRILLIONS that we have spent or printed...

BofA to return $45 billion to taxpayers

 

APMEX pays fast no problems. EBay lots of trouble fees ect. I sell on E bay I get about $40.00 below spot

 

I've lately been an eBay junkie. non-PM related items. It's easy to get hooked on and find great deals.

Never sold through eBay though, don't intend to as I'm not a seller of anything.

But one day hope that will be gold....and it will probably go right back to APMEX.

 

US markets closing, gold currently at $1,208.60/oz.

 

None of the money is being returned to taxpayers. If given to the US Treasury, it will probably show up as smaller Treasury auctions at some future date. If given to the Federal Reserve, it's as good as gone. It might have some psychological impact on traders for a day or so, but it isn't fundamentally important to gold in my opinion.

 

Gold has dropped below $1,200 mark this morning. Currently $1,191.60/oz.