Gold Hits Record High at $1,035.95 on Weak Dollar

[Tilted]

Gold Hits Record High at $1,035.95 on Weak Dollar

Gold hit a record high of $1,035.95 an ounce in Europe on Tuesday, with buying fueled by dollar weakness.

Spot gold was bid at $1,034.75 an ounce at against $1,016.65 late in New York on Monday.

"We'll see further highs over the next 3-6 months. I think people are prepared to be short of dollar and long of other currencies including gold," said Michael Jansen, analyst at JP Morgan.

U.S. gold futures climbed to an all-time high on the back of a weakened dollar, surpassing the previous record set in March 2008.

I'm not sure I'm sold on gold as the long-term inflation hedge that it once was. Short term, it might not be bad though.

The bottom line is that there are better inflation hedges out there for money to flow to - ones with more tangible, more real, bases for value which can act as a backstop and provide support for the inflationary hedge value that they assume. The value of gold is somewhat tenuous. It relies on the collective desire, and the collective hope, of people that it remains the collective desire of people that it be a standard repository of the notion of inherent value. At some point, though we can't be sure when, the reality of what it really is will overwhelm that collective wish.

In reality, gold does not have a lot of practical use - at least not enough to justify the supply that we create. It isn't 'consumed' so to speak, so the world supply just continues to grow. And, gold producers have the ability to increase supply to account for increased demand, when that demand drives pricing that makes production very attractive. Since it isn't consumed, the arbitrary demand for it has to keep increasing to prevent the bottom from falling out from under it. Well, arbitrary demand can only increase so much before someone sufficiently convincingly points out that the emperor has no clothes on. At that point, without a strong real bases for value (for supply on the scale that the arbitrary demand created), all of the arbitrary value has to evaporate.

So, like I said, short term gold may be an okay play. But, long term, I don't think it is safe. And, there are other options for savvy investors, which are much safer. We live in a world that functions differently than the one that supported gold values for so long - and eventually that is going to matter. Other potential repositories for the notion inherent value are more liquid - more accessible - now.

[EmptyTimCup]

and silver ?


how about ammo ?

[blacklabman]

G. Gordon Liddy was right.

[Tilted]

Gold Hits New Record High at $1,048.20 an Ounce

It's back down around $1040 right now.

[Tilted]

Originally Posted by EmptyTimCup

and silver ?


how about ammo ?

Silver is a much different animal than gold. It isn't really an inflation hedge and its value isn't based largely on a perception that it is a standard repository of the notion of inherent value (i.e it is more real, and less arbitrary). More than half of the demand for silver is for industrial uses - and those don't include its uses in jewelry, silverware or coin production. Only a small portion of the silver supply is consumed for investment purposes.

It definitely trades more truly as a commodity.


As for ammo - well that of course is an entirely different beast altogether. But, it's fair to say that it isn't used as an arbitrary store of inherent value either - its perceived value is more definable, more practicality based.

[Tilted]

Gold is still rallying. Trading at $1053.40 this morning.

[EmptyTimCup]

Originally Posted by Tilted

It definitely trades more truly as a commodity.


As for ammo - well that of course is an entirely different beast altogether. But, it's fair to say that it isn't used as an arbitrary store of inherent value either - its perceived value is more definable, more practicality based.

I am kicking myself for not buying 50 Oz when it was $ 10 per oz .....

Ammo: well yeah let something like Katrina sweep through and .22 bricks will be worth a whole lot more

a buddy and I used to joke about have 2 sea containers one full of TP and the other Budwieser .... for end times trading




trade you a bud for that 5 gal of gas ..... or an hr with your woman

[Tilted]

Gold Hits New Record High as Dollar Slips

Trading around $1069 / oz right now.

[Tilted]

Russia May Sell 50 Tons of Gold in 2009

[Tilted]

Gold briefly traded above $1,100 /oz this morning.