Gold Price Jumps $20+ an Ounce
Gold prices jumped up Tuesday, jumping more than $20 an ounce due to the falling dollar and a big drop in consumer confidence. Crystalline gold
Spot Gold Price Closes Over $1,000 An Ounce
Gold futures soared to a fresh all-time trading high above $1,000 an ounce Friday as the dollar sunk to new lows.
COMEX gold for April delivery touched $1,007.30 an ounce in morning trading before slipping back a bit.
Investors pushed gold higher Friday in reaction to a plan by the New York Federal Reserve and JPMorgan Chase & Co. to provide secured funding to Bear Stearns in a bid to keep the troubled investment firm from collapsing amid a global credit crisis.
Behind gold's surge has been a drop in the dollar, which dropped below 100 yen for the first time since 1995 Thursday. It also has hit a string of record lows against the euro.
The greenback has fallen to record lows amid fears of a protracted slowdown in the U.S. and concerns about rising inflation.
A key inflation reading released by the Labor Department Friday showed consumer prices were flat last month, but there are signs that price pressures are building.
Spot gold price hits $1,000 an ounce
The spot gold price briefly pushed past the psychologically important $1,000 mark Thursday, as investors poured money into the metal to hedge against a tumbling dollar, soaring crude prices and a shaky U.S. economy. Gold gram scales
Gold Moving Closer to $1,000 per Ounce
This morning the dollar again dropped on speculation that the Federal Reserve's latest plan to lend banks $200 billion in exchange for mortgage debt won't will not work in easing the credit crunch.
In 2007, gold jumped 31 percent as the dollar fell 9.5 percent against the euro.
Jon Nadler, an analyst at Kitco Minerals & Metals Inc. in Montreal said: "Pessimism continues to manifest itself in the markets. Dollar selling remains a relatively safe activity for speculators. Buying gold, therefore, remains safe as well for the moment.''
Gold … The Intelligent Person’s Hedge For Asset Preservation
A recent Bloomberg headline that I thought was right to the point: "Gold beats financial assets on global distrust of central banks." This is why people need to own gold. You can't trust central banks to preserve your dollar's purchasing power. The Fed is now cutting interest rates as fast as it can. Seems the government believes easy money is the way out of our housing induced mess.
Was it NOT easy money that got us to this point? Yes, 125% re-fies, No doc (liar loans), fog-the-mirror qualifying loans were the darlings of the mortgage and real estate industry. After all, real estate always appreciates in value, doesn’t it?
Does a homeowner whose home is now valued at $100,000 below the mortgage, really care if the interest rates are way below their original rate? Well, if they have an adjustable rate loan they care, because their monthly payments will decrease. But, they still cannot re-finance their mortgage. Plus, even at a somewhat lower rate, with negative equity, renting at lower monthly costs looms as a real alternative.
I have no idea how high gold can go, but I think intelligent people will need to own gold for quite some time to come.
