Gold Hits $1,500 Price for First Time

[dreingar]

Gold Hits $1,500 Price for First Time
CBNNews.com — Wed, 2011-04-20 10:01

Gold hit another milestone Tuesday as the price for the precious metal crossed the $1,500 per ounce mark.
The gains came just one day after Standard & Poor's Rating Service lowered its long-term outlook on U.S. government debt over concerns about the massive budget deficit, which is projected to run a record $1.5 trillion this year.
Analysts say investors are worried about the growing debt problem in the U.S and worldwide with the potential for higher inflation.
"I think it's going to be more in the forefront.of investors' minds here going forward," LaSalle Futures Group analyst Matt Zeman said.
"The bottom line is the going looks good for precious metals going forwar," he said.
The price of gold has been going up this year as the dollar keeps falling on international markets.
The price of silver has also risen to around $44.50 an ounce.
In other metals trading, May copper rose 3.15 cents to settle at $4.2295 a pound, July platinum fell $11.50 to $1,771.30 an ounce and June palladium dropped $8 to $731.10 an ounce.

Poll question: What will the price of gold be in December?
1. $1,500
2. $1,700
3. $2,000
4. HIGHER

 

[Brandon]

im guessing higher.
but thats about all it is. just a guess.

 

[supermahns]

As long as we have politicians spending more money than we're making gold will continue to rise higher and higher. The last I remember gold being a few years back was around $600-$700 an oz. I guess I should have invested. But then again I guess I did in a way. I bought guns instead ;-)

 

[iwearcowboyboots]

As long as we have politicians spending more money than we're making gold will continue to rise higher and higher. The last I remember gold being a few years back was around $600-$700 an oz. I guess I should have invested. But then again I guess I did in a way. I bought guns instead ;-)

Should have bought silver 12 months ago. It is up by around 150%... Corn, cotton, and coffee are up by about the same...

 

[Expat]

I just can't bring myself to buy at historic highs. But I have the feeling it is going up some more. So I will probably miss out. I struggled when gold was at 12 something and didn't do it.

 

[supermahns]

gold is up over 200% from what it was a few years back. wish I would have bought some. For the corn, cotton, and coffee....well those expire too soon for me to hold them and make any money off of them.

 

[PeaShooter]

Talk about your missed opportunity... How about right after Y2K when it was at 300/oz...

 

[grimor]

I heard on the radio "Gold has hit a record high, for the first time in history" lol

 

[Loar]

I think the future price may hinge on the upcoming debt ceiling debate. Should the debt ceiling not be raised, the price of gold may go up substantially.

 

[Flintlock]

Talk about your missed opportunity... How about right after Y2K when it was at 300/oz...

This.

 

[spencer rifle]

Who cares? You can't eat it or load it into your gun. All those gold hoarders are going to be disappointed if they try to trade it for my food or ammo when the SHTF.

 

[djl02]

Who cares? You can't eat it or load it into your gun. All those gold hoarders are going to be disappointed if they try to trade it for my food or ammo when the SHTF.

Everyone should care. Theres a reason why its so high right now. It effects everyone.

 

[CarmelHP]

I think the future price may hinge on the upcoming debt ceiling debate. Should the debt ceiling not be raised, the price of gold may go up substantially.

So you think if the debt ceiling is raised, it will go down or stay the same? How do you conclude that?

 

[Expat]

I think the future price may hinge on the upcoming debt ceiling debate. Should the debt ceiling not be raised, the price of gold may go up substantially.

Since not passing the debt ceiling increase would in effect be the same as passing a balanced budget amendment, my prediction would be the opposite. I believe S&P would change our outlook to positive. I believe gold prices would probably edge downward. Even if we stop the deficit spending immediately, we still have a long way to go. But at least we would be back on course.

 

[iwearcowboyboots]

Everyone should care. Theres a reason why its so high right now. It effects everyone.

Here is a big part of the reason:

Wiki on monetary base...

Apparently 2011 has the Fed scrambling and pumping more currency into the market. Extra dollars on the market make dollars worth less which makes commodities go up.

The 2008 jump makes sense because of the money that went out to banks to help spur the economy due to the economic crisis. What changed from 2010 to now that we need another large and rapid influx? It probably has at least a little bit to do with the Fed (for the first time ever as part of the bailout) paying interest on excess deposits starting in 2008.

Maybe at this point, Tyler Durden would be a better Fed Chairman or Sec of Treasury?

 

[E5RANGER375]

gold will drop

 

[spencer rifle]

This is no surprise. Debasing the currency is always seen as a solution to debt and inflation problems - short-term. Then we have to decide whether our meager interest rate or investment income will offset the fall in currency value over time. If so we should continue or investments. If not we should buy all the non-perishable commodities and supplies we can afford now.

We are dealing with fiat currency here - it has no real value (except as pretty paper) without everyone agreeing it has other value. The government seems to be going out of its way to shake our confidence in our own currency.

But that does not mean I would invest in gold. It is only as liquid as you can find people who will trade things of real value (food, fuel, ammo, parts, energy, clean water) for it. Sure, it's pretty and shiny, but so is my Ruger.

 

[Clay]

now is the time to sell, not the time to buy.

 

[jedi]

Who cares? You can't eat it or load it into your gun. All those gold hoarders are going to be disappointed if they try to trade it for my food or ammo when the SHTF.

Correct but GOLD should not be looked at alone or as a way to prepare for STHF. GOLD is a way to protect wealth and that is it. It should be part of an overall package of financial protection for STHF. Commumable goods (food, cloths, etc..) being the other half of the equation.

If STHF comes evenutally things will reset again (ie. Even if the dollar collapses and a new AMERIEURO paper money comes) the world does not stop. People will still need to eat, people will still buy good, etc... Civiliation continues and thus if you want to keep your std. of living GOLD helps protect your long term wealth while a "new currency" comes around.

Now as stated GOLD alone does not do it. Since for the time during the transiction you still need to eat/cloth/etc. yourself. & for that you need communable goods to keep you alive.

gold will drop

Yes it will. Just like everything else. It comes in cycle. It can't go up forever. Well it can if you base it on a USD. But at some point it won't be based on a USD and thus it will drop.

now is the time to sell, not the time to buy.

Yes and No.
Depends on what you are trying to do. Preserve wealth or something else.

 

[awatarius]

Should have bought silver 12 months ago. It is up by around 150%... Corn, cotton, and coffee are up by about the same...

I purchased about 10k worth 1.5 years ago maybe I should sell? Its all raw