Gold nears $524 to 24-year high. Prices set for six-session gain on inflation worries

KEWL

Never accept the explanation for price movements, its part of the disinfo/manipulate game.

Might be... 'gold nearing 24-year high on derivative short selling buybacks' for all we know.

"Gold Nears 24 year High"...


Can anyone explain how this is a *good* thing? I'm trying to figure this out.

How does expensive gold shake out in such a way that it is really *good* for life in general.

All the goldbugs think this is some kind of economic Valhalla - but what does it mean for the other 3/4th of the planet that lives on less than $2 a day.

How is this fantastic, other than in a predatory capitalist way?

meybe....but eventually they'll have to go long

24 year high sounds like sell to me

yeah...kinda like real estate eh

yup

Yeah, I'm dumping my real estate. All six properties. It's time to bail.

How 'bout gold? Should we hold it or get out now?

get out now, the artificially enhanced price will soon drop

whoever controls the inside trading of gold wants to drive the dollar down

but, who is it?

Don't be a fool!! Do you remember 1980? Gold and silver through the roof due to stagflation. HIgh interest and high unemployment just like in the depression. Reagan pulled us out by record deficit spending( for that time) but this is a whole new ball game. The world has an alternative in the Euro. It is a global economy and the dollar has started it's slide because of the trade deficit. The dollar will become devalued in order to pay down the deficit just to keep the dollar from crashing immediately. Our government is not pulling the strings and can't control it anymore. Besides that, think about it. Tax free profits from buying low and selling high later as long as you do it discreetly in stages. Not an asset if you go bankrupt unless you bring it up. Extremely liquid and transferable upon death for the same reasons. I don't use banks except for bill, that's it.

Dollar hyperinflation

the way i see it....

gold has silently doubled from 250-500 since the market implosion of 2k...

If it wasnt for the Fed, we would be in our 5th year of major recession

when all that liquidity gets squished out its gonna be painfull

the USD0llar used to purchase gold at 1:35 in 1973, today it takes 1:525

holding silver and gold will yeild a better return than 2 measly points/year from your bank, why leave it with them?

ill bet that there are substantially more bullion contracts than there is bullion...if that unwinds by people demanding delivery,,,the price will rocket on a s/d thing alone

add in the WOT and the potential real estate "re-valuation"...FannyM and GM, Ford

fugly i tell ya

gold will take out $850 by next dec

silver will get sucked up with it

Gold at new 24-1/2 year high
>By Kevin Morrison
>Published: December 7 2005 11:23 | Last updated: December 7 2005 20:37

[link to news.ft.com]

Gold rose to a 24½-year high on Wednesday, touching $516.50 a troy ounce on Japanese private investor buying as well as benefiting from the flow of investment funds into commodities markets, which has pushed many metal prices to record peaks.

Paul Merrick, vice president commodities at RBC Capital, said the strength in the gold market has raised the possibility of central bank buying.

“There is concerted buying by a significant buyer, and it could be a central bank,” said Mr Merrick. Central banks have been net sellers of gold for the last 40 years, although there have been occasional purchases. However, recent positive comments on gold by officials from Argentinian, Russian and South African central banks have given bullion traders hope that some banks may start buying again.

Mr Merrick said the 10 per cent rise in the gold price in the past three weeks has not been accompanied by a significant lift in buying of Comex gold futures in New York. Turnover in gold futures on the Tocom exchange in Tokyo was 7.5m ounces, exceeding Comex in New York by nearly 3m ounces. Normally, Tocom volumes are only one third of those traded on Comex.

“This suggests that there could be another large buyer out there, as there is a concerted effort to buy on any dips in the prices,” Mr Merrick said.

Gold also reached a record high of €440.53 a troy ounce in single currency terms, and neared £300 sterling for the first time in almost 20 years.

Silver reached another 18-year high when it hit $8.86 a troy ounce.

Base metals also had a record breaking day. The three-month copper price hit a record high of $4,452 a tonne on the London Metal Exchange after Chilean rail workers that serve the country’s top copper mines went on strike on Wednesday, prompting concerns that output of the metal could be affected.

China’s State Reserve Bureau, which is at the centre of market speculation that it might have to buy copper to cover its obligations, only managed to sell 3,700 tonnes of copper from a planned 20,000 tonne auction.

The three-month LME aluminium price hit a 16-year high of $2,248 a tonne and zinc also reached a 16-year high of $1,832 a tonne.

Oil prices extended their losses after a bigger than expected increase in US crude inventories. IPE Brent for January delivery declined 63 cents to $56.98 a barrel at the close of London trade. January Nymex West Texas Intermediate slipped 73 cents to settle at $59.21 a barrel in New York trade.

Refined sugar futures touched a nine-year high of $333.5 a tonne in London, while raw sugar prices in New York reached a 10-year high of $13.50 a pound.

119,

Maybe you're right about Gold climbing up to $850 by next Dec, but I think it will spike down to $475-$450 before that happens.
There are gaps in the chart for gold that need to be filled by a move downward before it can resume it's climb.

gaps are an illusion created by the COMEX. it's all bullshit, and you know it. you have to look at 24-hour trading, stop being so fucking ethnocentric. the world doesn't revolve around the fucking usa.

there's also a gap in the nasdaq at 300. for real. go look at it.

Well if it continues to rise without stopping for a breather there will be a massive hangover come early next year in the form of major shorts and a correction.

That is, barring a major unforseen event that could very well happen before the end of this year.

"Refined sugar futures touched a nine-year high of $333.5 a tonne in London, while raw sugar prices in New York reached a 10-year high of $13.50 a pound."


Sugar at $13.50 a pound !!!


Sell your gold now and buy sugar while you can !

2642 you held your property too long. It's a bust.

51612 ya got that right. I was wondering if anyone would notice that sugar price. I lived in Hawaii from '91 to '02 and many sugar mills had to shut down because the price of sugar was around $5.00/lb They had to move to the Phillipines or Central America to find cheap labor so they could make a profit

Gold is doing very well.. 530$ coming up..

Silver is also souring : 8.92

The kitco.com website has a handy tool to display gold/silver prices in the taskbar .. I just can`t stop looking at it last few weeks..

If you were starving how much gold would 20 lbs of rice cost you?

Can't eat gold. Invest in food and survival gear.

Gold is in the 5th wave of a third. Should go into consolidation, where you buy in. Too much bullish sentiment right now.

gold was a good buy and hold
when it traded in the 300 range

kinda late to buy now, wait for
the next big slide in the price

'cant eat gold'

cant eat FRNs either !~!

Trinity - Do you ever Sleep Man?
Being a workaholic is not my way of going out of this life.
Have a good weekend!
(work work work work.....)

cant eat gold

thats right....you exchange it for a pocket full of worthless feddies,then go shopping

cant eat paper, but you will soon whipe your ass with them

dont think that gold wont follow tech stocks, real estate or oil....nobody believed in them till the party was shit-faced

INFLATION ...the silent killer

feb futures 528.30

Trin .... I said gold would hit
$525, silver breaking $9.00,by the end of todays trading in my thread on silver.
Looks like I may have UNDER estimated the price, LOL !

Eagle

Eagle
Found this a few minutes ago:

Investors Pulled and Pushed to gold as
mainstream commentators embrace gold bug truisms

Louis Paquette

Last issue, I marked the Five Year anniversary of the Bull Market in Gold and gold Stocks, suggesting how their stellar performance over the major U.S. stock indices was liable to impact people's perception about gold. Well, the most amazing transformation has taken place since then - financial mainstream media commentators have suddenly jumped all over the gold sector. Don't underestimate the importance of this sudden conversion. These commentators have huge influence to reach the masses that are not yet converted; they haven't even heard the story yet. But they will now.

So far the bull market has been driven by the gold bugs themselves and a trickle of converts along the way. For the first time though, I suppose because gold was approaching $500 and outperforming Wall Street for Five years running now, mainstream influential media commentators are converting and talking about gold in very bullish ways.

For example, CNBC's Larry Kudlow has never been a fan of gold. In fact he loathes higher gold prices, considering this a "negative indicator" for the good 'ole American economy and free enterprise system. And while he didn't quite convert the other day when he had John Hathaway (Toqueville Gold Fund) on a panel to discuss gold and metals, Larry certainly sounded open to suggestion. John calmly listed just a couple of the standard reasons for higher gold prices, reasons gold investors have been familiar with for years, but until very recently, completely foreign to mainstreamers. By the end of the session, Larry and another panelist were asking how to participate! All resistance had fallen!

Or how about CNBC's Jim Cramer? Yes, and I do mean, until very recently at least, "Commodities are DEAD!!" Cramer. Pierre Lassonde's not the only one calling for gold prices to reach $1,000 these days. Cramer is now also suggesting gold is on its way to four figures in his article dated October 10, The Gold Parachute in the New York Magazine (excerpt posted at www.Goldline.com).

Then there's Kevin O'Leary, host of "Squeezeplay" on RobTV. I listen more for Kevin's non- PC political views (consider him the "Don Cherry of finance") more than his financial interests, as he's more focused on the mainstream/large-cap area. He's cagey though and like my previous two examples, he has also never shown the slightest interest in gold. However, in just the past few weeks, Kevin must have seen the light. While adverse to specific company risk and trying to evaluate the individual company stocks, (besides bell weather, Newmont) he's suggesting GLD.NYSE to his audience, the bullion ETF that trades in New York. He says, that with only 1% in of one's assets into gold, a person should still be worried. But with 5%, people can sleep soundly at night! This really must have put the zap into people, because that same week, I heard numerous individual investors expressing that very sentiment - the strong desire, even a sense of urgency, to own the physical metal.

It's amazing to hear commentators embracing the very same truths that the hard-core gold bugs have been claiming for years. Like the concern over too many U.S. Dollars in foreign hands. Where were these guys all these years, when gold was priced at $255, or $300? The information was around. Nothing really has changed. What's different, is that these things are finally getting noticed and acknowledged.

What's happening is - while these guys don't quite understand why it's happening, like I said in the last Issue, with the gold sector outperforming stocks FIVE YEARS running now, they just can't keep looking the other way any longer. They finally recognize a good thing when they see it and don't want to be left at the station any longer. This is a prime example of one of my favorite truisms of all - three simple words that explain more about how an asset is priced than almost anything else: "Perception is Everything." And a sea change in perception about how gold is viewed by the masses is now under way, courtesy of the mainstream media.

Does this mean it's over?

Now that the mainstream is beginning to embrace gold, does this mean the gold bull market is nearing an end? After all, the last big thing, the Internet Bubble, lasted roughly as long as the gold bull market before it collapsed, about five or six years now. I would suggest, no, for a couple of reasons. For one, commodity bull markets tend to run for 15 to 20 years and I can see no reason for it to be different this time. Especially with what's happening in India and China.

Second, just because financial types have started talking about gold, hardly means people are instantly converted and invested. Long standing beliefs formed by the twenty-year bear market in precious metals and commodities in general from 1980 to 2000 will take years to change. The latest generation of investors (especially in the West) has little to no concept of gold as an investment or currency, or of really bad times or currency debasement. These are foreign concepts that only the most open minded and perceptive will catch on to immediately. The process will take some time and none of the signs of a secular bull market top are present quite yet. When we start noticing How to Get Rick with Gold seminars being advertised on a daily basis, like we are seeing in the Real Estate sector today, then you'll know that the ultimate top is much closer at hand.

Pull and Push

There are actually two things happening to investors with regard to their perception of gold as a financial asset class. They are being Pulled toward gold, by its fifth straight year of above average gains, by its relative performance over other asset classes, by breaching the $500 mark, and now by the mainstream financial media, among other things. At the same time, they are being Pushed away from more traditional investments, first by very low returns on fixed income investments, secondly, by the growing realization that some pretty serious problems lie ahead. Of course these are hard to imagine given all the goldilocks-economy statistics that have been released lately. But listen to the likes of Alan Greenspan - warning in very plain language that the consequences of doing nothing about the U.S. current account deficits and the looming pension/health care demographic crises will be serious. Then we have the comptroller general of the United States running around the country explaining "…how the nation's finances are going to hell." and how the country's business model is "broken" in a USA Today article dated November 14 entitled: A 'fiscal hurricane' on the horizon'. (Link to this is on our site if you haven't read it, you should).

* "We face a demographic tsunami" that "will never recede," David Walker tells a group of reporters. He runs through a long list of fiscal challenges, led by the imminent retirement of the baby boomers, whose promised Medicare and Social Security benefits will swamp the federal budget in coming decades."


* "To hear Walker, the nation's top auditor, tell it, the United States can be likened to Rome before the fall of the empire. Its financial condition is "worse than advertised," he says. It has a "broken business model." It faces deficits in its budget, its balance of payments, its savings - and its leadership."


The difference between what we are now hearing from these people today and past gloom and dommers isn't the message, just the messengers. Previous gloom and doomers were selling products; their books, newsletters or gold coins. They were seen as possibly biased toward their bleak views. The new messengers do not have apparent reasons to benefit from raising awareness about these stark scenarios. Not only that, but they are from the "inside" - they know where things are headed. The new messengers carry more weight, this story is gradually getting out and it's spooking people into looking for alternative investments. And gold fits the bill perfectly.

[link to www.usatoday.com]

The USA Today article (link above) will scare the heck out of ya.

Get gold/silver!!!

I think I realize what is truly happening now to the metals market. Before, gold and silver were more or less reciprocal to the dollar in terms of it's relative value on worlds markets. If you follow the last month that is not the case. There are major players (banks) that are quietly exchanging their frns for metals so as not to inflate their own currencies and at the same time divest as much of the dollars they hold as they see fit. Read the articles on who has been buying the treasury notes for the last few months. Not so much other countries, but some obscure offshore buyers. Read the writing on the page. Foreign banks everywhere have already diversified their holdings between the dollar and the euro and this may be the quiet final divesting before a devaluation and crash of major proportions occur. I pray it will be as gradual as possible, but so was the depression in 1929. People didn't really feel the brunt for a few years. God help us if I am right.