Gold Prices Soar. What is going on?

I'm not really sure if this is the right place to put this post but I think it is of significance.

Today the price of gold closed at over $520 per troy oz. I have never seen it that high. Just to give you an idea where gold has been check out this quote.

"Last week, the spot price of the metal traded at its highest price in seventeen years. Gold closed at $463.50 per Troy ounce Friday."

Source: biz.yahoo.com...

That story is dated September 22nd. So $60 dollars ago gold was at its highest price in 17 years. Why the sudden rush to this precious metal? Something of significance is taking place. Is this a sign of a pending collapse of the global economy? With oil being a hot topic you'd think people would be putting everything they had into that. So when I see something like gold soaring I have no choice but to suspect something big is on the horizon.

The us economy is going to crap so people are looking at buying something more secure then the us dollar, like gold which makes it more expensive because of the demand. The us economy affects all the markets since they buy and sell.

It is expected to hit $850 over the next year.

He said gold prices were expected to continue to rise in 2006 and it was not impossible to see gold spiking to $850 an ounce in 12 to 18 months.

I seem to remember a time when it was $640 or so. Can't remember why it spiked back then.

Originally posted by Indy

Why the sudden rush to this precious metal? Something of significance is taking place. Is this a sign of a pending collapse of the global economy?

It's not a sudden rush. The price has been climbing for the last couple of years. The last three months has seen some strong price movement though with the psychological $500 barrier being crossed. Some analysts are saying $700 by this time next year with a top of $850.

This is a reflection of weak fundamentals in the economy and IMO does signal some rough times ahead. Gold rising has traditionally been a leading indicator (by about six months) of comming price inflation and market turmoil. I also think that the announcement by the US FED to stop publishing M3 in March is highly significant as is the establishment of the Iranian Oil Bourse priced in Euros set to go live in March.

Check out these threads of mine (and the older one in my signature on the next great depression for more background):

Petrodollar Warfare: Dollars, Euros and the Upcoming Iranian Oil Bourse

The Plunge Protection Team...

I also recommend financialsense.com if you want to learn and understand more (in particular the "Big Picture" segments of the Saturday broadcasts - and last week's special on a Gold conference in San Fransisco). Those guys seem "right on the money", if you'll pardon the pun .
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edit: link fix
Oh yeah there's also this: Rita causes record damage to oil rigs The GOM is still not back up to full capacity with Japan announcing today that they will keep releasing supply from their strategic reserves for the benefit of the US.

[edit on 12/8/2005 by Gools]

Indy
I have been expecting this for a while, it is especially relevant as the US Housing Market was today forecast by a large devoloper to be cooling off and maybe dropping in the next year or two too.

Also the World bankers and puppet masters are consolidating. On the american housing market....a couple of months ago the US largest 'landlord' or property developer has stopped investing and I quote :

NEW YORK (Fortune) - Tom Barrack, arguably the world's greatest real estate investor, is methodically selling off his U.S. real estate holdings as prices drive the market to nosebleed levels. He likens the current real estate market to a game of polo. "I feel totally safe playing polo on a field full of pros," says the bronzed 58-year old. "But when amateurs are all over the field, someone can get killed. They have more guts than brains. They charge after every ball and don't know when to hold back." It's the same with U.S. real estate right now. "There's too much money chasing too few good deals, with too much debt and too few brains." The amateurs are going to get trampled, he explains, taking seasoned horsemen, who should get off the turf, down with them.

Says Barrack: "That's why I'm getting out."

This thread IMHumbleO is with other current global economic factors (esp.inflationary) is the seed for this and further higher prices:

ATSNN Read

MischevouslyStudyingAlchemy

Regards

Elf

Since the dollar is going south, the big boys are letting the little guys get in and they are letting them determine the price. The small timers do not realize this is just a temporay state of false security. What Im trying to say is that the big dudes are trying to drive the small investers out as they will sell at a predetermined level well below what the small investor paid. Thats when the big boys are going to jump in the ring and take advantage of what rightly belongs to them, soaking the small guy. This is the play I've been waiting to see since the '70s. If you feel I am wrong wait a few months and keep an eye on the Asian and Euro. markets as they are key players too.

I know gold went to almost $900.00 an oz. back about 25 years ago because of some scam being pulled by two brothers in Texas. (I think)
They were after the silver market, and while trying to corner that, they drove up the price of other metals. I think silver hit about $50.00 an oz. before it fell apart on them.

But this recent movement will be interesting to watch, maybe we can spot the cause....
Who's doing the buying???
Is it widespread small investors???
Is a particular nation, or group of countries making any large buys???

If you want more information on gold, silver, and other precious metals, go to:
Kitco .

There are also historical charts available that go back as far as 10 years.

A short opinion on gold being the "fourth" currency is at: Gold as money

Gold is at $524 on the Asian market as I type this -

I think we're in a long term uptrend in global commodity prices. There had been a global glut of commodities pretty much for decades, but as third world economies, especially India and China, grow and create demand the supplies are getting tighter and tighter, starting with oil but steadily moving to other commodities. This will naturally cause the price of gold to rise, from both its own supply/demand but also as a safe haven investment in a climate of increased inflation.

Originally posted by anxietydisorder
I know gold went to almost $900.00 an oz. back about 25 years ago because of some scam being pulled by two brothers in Texas. (I think)
They were after the silver market, and while trying to corner that, they drove up the price of other metals. I think silver hit about $50.00 an oz. before it fell apart on them.

If I remember correctly it was the Hunt brothers that tried to corner the silver market. They drove the price through the roof but ended up getting in trouble for it. Not sure where the price of gold has been back then. I have no idea where to begin to look for that kind of data.

Sweet, I loooove gooold



If it gets anywhere close to $800 a ounce Im selling the bullion part of my coin collection

For an 'economy going south', the US$ seems to be doing pretty well against other major currencies.

I remember buying Krugerrands for $500 each, watching them climb to $800, then watching them drop to $300 before I dumped them. I had ten of them, which means I lost US$2000 plus comissions.

Since then, I've stuck with the stock market for my retirement and it's done a lot better over the long run than gold or silver. I wish I had those Krugerrands back; I'd sell them now, although a present value calculation would mean my $500 Krugerrands are worth about $100 if not less.

Oh well, live and learn.

However, FWIW, I doubt there's going to be a crash in teh stock markt housing market, or anything else (except for the sale of GM cars and trucks. If you have stocks, sell them and buy metals, my guess (and this is only a guess) is that by the time you paid the comissions, the price of gold would go down vis-a-vis the dollar and you'd be right back where you started from in a couple of months.

But no one -- whether a stock weenie or a gold bug -- can see the future, so if you have money that you can afford to play with and perhaps lose, have fun!

According to Kitgo gold had built up from under $300 to about $500 in the last 6 months during 1979. Then in January 1980 it skyrocketed to almost $900.

What was the news reporting in late January 1980 you ask?

American hostages held in Iran


The Carter administration recalls U.S. ambassador to the Soviet Union
President Carter announces that unless Soviet troops leave Afghanistan, American athletes wont participe in Summer Olympics
The inflation rate for 1979 reported to be largest increase in 33 years

Price of silver declines after New York commodities exchange temporarily suspends silver trading; price of gold reaches record $850/troy ounce...

I am not sure if it was the silver trade alone that caused the run up back then.

Found this from 2004. Not sure if it's on the money or disinformation.www.kitco.com...