Gold

[Huang Chung]

If tonight's jobs report is good, we might see a bit of a sell off in gold. Already down about $8.00.

[Skol]

"Gold is just another fiat currency.-------------What a load of bollocks--- you should look up what a Fiat currency is---It for one isn't a precious metal that's for sure there's absolutely nothing fiat about gold,silver,platinum etc just try and find the stuff

LOL,
Though that might flush you out JB.
The article in Barrons was written by Richard Wiggins, chief investment strategist for First Michigan Bank, a private bank that is purchasing failed banks from the FDIC, so I think I'd rather listen to what he's got to say than you. Owning physical gold doesn't make sense, e.g.,

"The big argument for gold is that all of the money that the Federal Reserve is printing - 18 years of easy money - will come back to haunt us at some time when inflation come roaring back. Yet if today's investors are worried about U.S. inflation, they can go out and sell T-bonds, or buy the euro or another currency and earn interest while they're doing it. Investors afraid of 1970's style inflation also should be buying Treasury inflation-protected securities."

[Huang Chung]

If tonight's jobs report is good, we might see a bit of a sell off in gold. Already down about $8.00.

Ok, bad jobs report and gold up $10.00

Gold....safe haven champion of the world.

[elZorro]

If tonight's jobs report is good, we might see a bit of a sell off in gold. Already down about $8.00.

Thanks, HC: this report is a few hours old, gold was back on the march upwards. It should halt at about 1220/oz.

http://in.reuters.com/article/idINIndia-49052520100604

But now I can see the connection - people betting the employment figure would be very good, gold dropped sharply in advance. When the figures were not so hot, it then rose back almost as quickly, ready for the weekend.

[JBmurc]

Gold -USD $1220oz ---AUD $1485oz !!! what a boom for ASX goldies

Even if the TAX in the USA was 100% they'd still have trouble paying off their total unfunded liabilities of 72 trillion an growing why because their Entire GDP is round 14 trillion
the Wars ,Government workers ,massive inverstruture costs,bailouts,space programs,defense spending soaks up most their GDP that why their Debts are going up----
The only hope for the USA is mass Inflation an they know it.

[elZorro]

Gold -USD $1220oz ---AUD $1485oz !!! what a boom for ASX goldies

Even if the TAX in the USA was 100% they'd still have trouble paying off their total unfunded liabilities of 72 trillion an growing why because their Entire GDP is round 14 trillion
the Wars ,Government workers ,massive inverstruture costs,bailouts,space programs,defense spending soaks up most their GDP that why their Debts are going up----
The only hope for the USA is mass Inflation an they know it.

Good post JB: total world debt is apparently hundreds of trillions. As the world's resources get used up, it's going to be harder to easily service that debt. The mining and exploration sector is gearing up again though, and that will bring more of the latest technology in. I'm hopeful that some breakthroughs in the energy sector over the next 10-20 years will let the world carry on in a more sustainable way.

In the meantime, gold looks a safe bet.

[JBmurc]

Good post JB: total world debt is apparently hundreds of trillions. As the world's resources get used up, it's going to be harder to easily service that debt. The mining and exploration sector is gearing up again though, and that will bring more of the latest technology in. I'm hopeful that some breakthroughs in the energy sector over the next 10-20 years will let the world carry on in a more sustainable way.

In the meantime, gold looks a safe bet.

Thats the thing if their another Energy crisis an the price of oil spikes higher watch GOLD also get a kick along
most ASX gold producers will be making $700+ profit per oz produced only months ago that would have been closer to 400-500 profit--the PGM sectors IMHO will be the a star performer late 2010/2011/2012 the market will wake up one day soon

[shasta]

Ok, bad jobs report and gold up $10.00

Gold....safe haven champion of the world.

I find this info off Kitco quite useful to explain the movement in the Gold price (currently $US1,220.00)

Gold Price Change due to Strengthening of US Dollar -14.35
Gold Price Change due to Predominant Buying +26.55
Gold Price: Total Change +12.20

[JBmurc]

yeah then when you think the USD should well cash to all time lows GOLD will really fly ------too much debt to little GDP

[Skol]

There will be no inflation, like there's no peak oil, if anything mild deflation.
There's plenty of spare labour, there's plenty of things and gadgets to buy, there's plenty of oil, plenty of food, etc. etc.

The hyperinflation argument is pie in the sky, a figment of the imagination of endlessly optimistic goldbugs who keep on saying as they have for ages that gold 'will go through the roof', and hark back to the tedious Weimar Republic argument, something probably most of them know nothing about. Certainly none of them were alive.

There's a massive rush of suckers out buying gold and silver coins, heaps of ads in the US on TV imploring punters to buy gold, so all the warning signs a contrarian would look for are there.

Things are as bad as they can possibly be, the US looks it's as if it's on the way to recovery and the best gold can manage is $1200, exactly half what the 1980 inflation adjusted peak was.

The IMF is selling 403 tonnes of gold-smart move.

There was even one optimist trumpeting the other day how Iran was buying 1.4 tonnes of gold, and how this was liable to really set the market on fire.

1.4 tonnes of gold measures 18 inches X 18 inches x 18 inches. LOL