Gold! Silver! Platinum! all hit highs!
Sel Appa
09-12-2005, 21:51
At $530, $9, and $1005(per troy ounce {31.1g approx}) respectively, these precious metals...which I have casually tracked for months are at almost, if not, all-time highs. My interpretation is oil, inflation, and Bush. The former two are commonly said all over the news. My suggestion is not buy unless you like risks, but if you bought up some precious a few years ago, you may want to sell soon.
Personally, I have a few silver one-ounce bars somewhere and a half or full eagle(old US gold coin). So any plans, ideas...?
Yahoo Article (http://www.yahoo.com/s/264535)
NY Times prices (http://marketwatch.nytimes.com/custom/nyt-com/html-currencies.asp)
The South Islands
09-12-2005, 21:55
Bush causes gold prices to rise?
Lunatic Goofballs
09-12-2005, 21:56
How much is protactinium worth?
Bush causes gold prices to rise?
Evil Boosh causes all bad things in the world.
Everyone knows that bad things happen to good people because of the war in Iraq.
Kossackja
09-12-2005, 22:45
inflationadjusted the price isnt even that high, in todays dollars the gold price in the early 80s was over $1500 per ounce. you could blame the decision to move from the gold standard to a bona fide currency if you like.
personally i wouldnt buy gold, because there have been substantial investments into production capacity of gold over the past decades unlike with many other resources (for a long time no new lead mines have opened) plus gold is almost completely recycled, once it is in the market that gold will never vanish like by corosion and it is not being used up like coal.
Marrakech II
10-12-2005, 00:22
Yes it is amazing that they have gone up. But I have heard some estimates over the next couple of years of gold hitting $800.
I'll take this opportunity to laugh at market economies --- and economies in general --- again.
Marrakech II
10-12-2005, 00:29
I'll take this opportunity to laugh at market economies --- and economies in general --- again.
Yes they dont make sense at times do they. But there are underlying trends that force prices up that are completely understandable. Gold/precious metals prices are forced up on the fears of inflation. I remember the last time this happened. That was of course in the Carter years. There was massive inflation. Not even close to that is happening today. So I believe the top of the market for metals could be much much higher than now.
Yes, this is logical given the emergence of a new inflationary threat, the increasingly capitalist Chinese economy. Combine this with existing high oil prices and strong demand for fixed assets and it makes quite a bit of sense. Now, some of the buying is institutional demand, but seems to be more part of a general upswing in investments, since we're not seeing falling demand for other investments. Plus, we're in a rising rate environment, with the possibility of Japan's rates going up (an even which hasn't happened since the 1980's, which coincided with the last inflationary upswing, albeit more severe), so gold will rally until these threats are properly restrained and absorbed in to the economy.
The gold rally coincides with the end of the 1990's bull market and the spike in oil prices starting in 2000 (which played a major part in tipping the economy in to recession). It's not Bush who's driving the gold rally.
Sel Appa
10-12-2005, 00:33
Yes it is amazing that they have gone up. But I have heard some estimates over the next couple of years of gold hitting $800.
There are those ads in the newspapers every so often saying that such-and-such a company is selling gold coins and "the government has just ok'ed their release"(they've been legal for 3 decades) and saying it will hit $1500 an ounce. I'll believe it when I see it.
I have watched it grow over the past few years and it seems to correspond with Bush's tax cuts, wars, odd spending...
Yes they dont make sense at times do they. But there are underlying trends that force prices up that are completely understandable. Gold/precious metals prices are forced up on the fears of inflation. I remember the last time this happened. That was of course in the Carter years. There was massive inflation. Not even close to that is happening today. So I believe the top of the market for metals could be much much higher than now.
My problem is that people's lives are in the hands of a system they can hardly control...
...And their lives being in the hands of a system is bad enough in itself.
Staying on topic: If you are going to invest in precious metals, don't be a dipshit and do it now, because you'll end up screwing yourself.
Marrakech II
10-12-2005, 00:37
My problem is that people's lives are in the hands of a system they can hardly control...
...And their lives being in the hands of a system is bad enough in itself.
Staying on topic: If you are going to invest in precious metals, don't be a dipshit and do it now, because you'll end up screwing yourself.
Welcome to humanity Potaria. There are always things out of our control.
Regarding the last comment. No, Im not a dipshit and buying gold now. When the wife and I were visiting Morocco last summer we bought alot of gold. There it is 18k+. The prices were decent and can say we got a good appreciation at this point.
Neu Leonstein
10-12-2005, 00:38
Wasn't there this Indian festival season on where everyone buys a lot of gold?
Maybe that's got to do with...simply more demand?
Kossackja
10-12-2005, 00:39
If you are going to invest in precious metals, don't be a dipshit and do it now, because you'll end up screwing yourself.how do you know? if anyone could predict how the prices will devellop in the future, there would be no need for a market.
Wasn't there this Indian festival season on where everyone buys a lot of gold?
Maybe that's got to do with...simply more demand?
Could be... I'd look into it, but I'm simply not interested.
how do you know? if anyone could predict how the prices will devellop in the future, there would be no need for a market.
Probability. It's likely that the prices will drop sharply after this point before they rise past it.
Kossackja
10-12-2005, 00:44
Probability. It's likely that the prices will drop sharply after this point before they rise past it.no it isnt, the current market price reflects all available information on current facts and future probabilities. if it didnt arbitrage trading would immediatly set in and correct the price.
Probability. It's likely that the prices will drop sharply after this point before they rise past it.
Not yet. Wait until there are calls for ridiculous prices, like $1,000 an ounce by the end of 2006, or inflation/energy prices fall but gold keeps rallying. Those would be surefire signs of heavy speculation...just like in oil prices.
Not yet. Wait until there are calls for ridiculous prices, like $1,000 an ounce by the end of 2006, or inflation/energy prices fall but gold keeps rallying. Those would be surefire signs of heavy speculation...just like in oil prices.
Good point. I still say that if anybody's going to invest in these metals, now isn't exactly the best time to do it.
Sel Appa
10-12-2005, 17:43
Good point. I still say that if anybody's going to invest in these metals, now isn't exactly the best time to do it.
I wish I had thought about this when I saw silver go to $5...I would have bought all my money into it. NExt time this happens...
I wish I had thought about this when I saw silver go to $5...I would have bought all my money into it. NExt time this happens...
Hindsight is a BITCH in the market. Three words; Google, Ebay, Haliburton.
Big Jim P
10-12-2005, 22:35
In 1979 or 1980 gold hit $800 and silver hit $50.
As for my plans, I will keep my gold and silver until they hit at least this amount.