Gold Hits Record $1,000 an Ounce

[DC Dawg]

Gold Hits Record $1,000 an Ounce

By MAE ANDERSON and LAUREN SHEPHERD – 1 hour ago

 

NEW YORK (AP) — [font:Times New Roman]Bargain-hunting at the local jewelry store just got harder.

 

Gold, which has soared to record levels in the past year, hit a new milestone Thursday, rising to $1,000 an ounce for the first time in futures trading — a boon for investors, but a deterrent to consumers shopping for jewelry.[/font] more...

 

Gold prices have backed off a little. As I type this the price of gold is currently $994.47 per ounce.

 

Scott

[MikeKing]

well...well well...the fantasy level of 1K gold has finally, finally ...after all these years, been reached.

 

and...

.......the world

.....................did not...

..................................end!!!!

[TJ'S Coins]

well...well well...the fantasy level of 1K gold has finally, finally ...after all these years, been reached.

 

and...

.......the world

.....................did not...

..................................end!!!!

 

...yet

[just-john]

the price is at a record high but the mileage on that 2008 Thousand Dollar Bill isn't what it once was.Did gold go up in Euro's or Pounds.What what that $1000.00 to day or in 8 month

See where it is 1 yr after the next election maybe $2500 but a tank of gas will be $500

and a week worth of food will more than double

[CHABSENTIA]

It all depends on how you look at it. The dollar is down aginst the Euro another

20%.The Dollar is down against all Currencies and for the first time in two decades is down against the Canadian dollar, The Credit Crunch initiated by Bernake and Paulson for whatever reason has caused it along with other such disruptions.

 

 

As long as Gold is quoted in terms of the dollar which is declining then the Price of Gold will have to rise as it is seen as a haven against the dollar etc. I don't think this rise is a coincidence as it started about the time that the Federal Funds rate started its ascent of being increased 17 consecutive times by Heliocopter Ben.

 

Since it takes $1.50 to but one Euro then conversely one Euro will buy $1.50 so 1000 Euros will convert into $1500.00 which will buy 1 1/2 oz of Gold. The $1500.00 needed to buy 1000 Euros will still buy 1 1/2 oz of gold..The difference is in the price of goods and services. If somebody from the E.E.C. decides to buy goods in America or comes to America for a vacation then their Euro will go 50% further than we will here with the dollar.Conversely if people in America want to visit Europe then we will pay 50% more.

 

Looks like the idea was to encourage others to spend more Money here while also discouraging us from going aboad ams also spending more money here.

[MBA101]

Everyone has been complaining and complaining about how our manufacturing jobs are being "shipped" overseas (which raises the question: if it is such a big deal then why is unemployment at 4.5%?) but when the dollar was very strong it made buying other peoples goods way more attractive then buying anything here. Now with everything else becoming more expensive, we should gradually start seeing a shift to more domestic goods. Will take time for entrepreneurs to get going but over the years to come, it will become practical for many things we want and need.

 

I do not see any of this declining dollar as a big deal. It is an opportunity for everyone to make money if they have the will to do so.

[BillJones]

It's a sad time for the U.S. dollar and a sad time for coin collectors. Sure, if you are holding and lot gold and plan on cashing in, you are in for a big profit. Buy if you are still adding to your collection, as I am, all these high prices mean is that every gold piece you purchase is going to cost you more. AND the risk of holding it has been driven up by the high prices.

 

As for shifting manufacturing jobs back here, that is going to take a long time, if it happens at all. And if the Donkey Party wins everything (House, Senate and the White House) we will be sure to sign the Kyoto Accords.

 

For who thought that NAFTA was disaster for U.S. manufacturing jobs, NAFTA will seem like a mild cold compared to cancer with what Kyoto will do to us. Bill Clinton had brains enough to steer around it, but the next Donkey Party president won't. And even if the evident Elephant Party nominee wins, he has long record as a “maverick” (I think jack is a better description) who willing to support shoot yourself in the foot policies.

 

And in the mean time the Red Chinese will be exempt from environmental restrictions. They will be able to pollute like crazy in THE REAL way (NOT the “inconvenient truth” way) and bury our economy.

[Houston Investor]

I believe gold is on its way to $3000 - I have been purchasing mainly US Gold Type Coins and quality classic Silver Commems.

 

With China as a large creditor, pretty soon they are going to want something in return for that generous credit line they have extended us (like U.S.A. looking other way while they annex Taiwan).

 

I am bullish on US gold type coins like this:

 

 

[Houston Investor]

But don't forget about silver either. While gold has appreciated about 26% in 2008 silver has gone up roughly 50% - super deal! Why have we not seen the spillover into MS 63 and MS 64 common morgans? I have been buying a lot of ASE's.

 

 

[Oldtrader3]

I heard all this same gloom and doom nonsense in 1980 when gold hit $800. which would be about $1500. in today's dollars. Signing the Kyoto Accord is NOT the problem, nor is NAFTA! All the jobs were leaving the U.S. way before NAFTA. I was an engineering manager helping to move these jobs for many years, starting about 1980. The U.S. is still the most productive economy in the world, despite China and Japan.

 

The problem is that we (the people of this country and our children), want to have everything without attending school, or learning a trade or working at a job that adds value. Being a coin dealer does not add value! The problem is the globalization of trade, which will continue to grow and evolve whether we like it or not. American companies started globalization to avoid high U.S. taxes and high labor costs.

 

The sky is not falling! This too shall pass and we will adjust again to a diminished living standard. We cannot, as only one country, continue to utilise 35% of the world's resources forever without paying an economic price for this waste! We will survive and do with a little less, maybe one less car or TV set. Maybe some of us will think twice about buying a motorhome now that gas is $3.50 per gallon and going up daily. The U.S. has a glut of oil in surplus. Where is it? This smells like the screwing we got in the 1970's by the government in partnership with big oil companies.

 

I just hate these political tirades about one political party, or another, ruining the world as we know it. I have lived a long time, with many presidents from both parties, and we still have the best standard of living in the world. Wake up and count your blessings!

[MBA101]

"The U.S. has a glut of oil in surplus. Where is it? "

 

It is in the gulf, off the coast of California, in Alaska etc. We are not allowed to go and get it so that we can have our own supplies and lower the price of oil. China is drilling off the coast of Cuba and getting huge amounts of oil within miles of our own territorial waters, but we are not allowed to drill in our own waters where there is plenty for us to get. The simple fact is that politicians pander to the left in this country and we are seeing the result. Super high energy prices and we are doing nothing to lower them.

[BillJones]

You might hate tirades, Old Trader, but the point is the Donkey Party has gone way over the line. There are no moderates in the Donkey Party any more. They have all been driven out. Look at what happened to Joe Lieberman, and he’s not even that moderate. Back in 1944 are real fool, like Henry Wallace, could be pushed off FDR’s ticket because enough of the political leaders recognized him for what he was. In the end we were fortunate and ended up with Harry Truman. That could not happen today.

 

And for the record, as a free trade advocate I fully support NAFTA without reservations. I made the comparison with Kyoto because many people do view NAFTA as a disaster although their blame is misplaced IMO. I can’t say the same the Kyoto Treaty, however, for two reasons.

 

First, it restricts some nations while others, like China and India don’t have to observe it. It is patently unfair because China is quickly becoming one of the world’s leading polluters. Heck, they worried about cleaning up their air for the upcoming Olympics so the athletes don’t chock to death on it.

 

Second, the whole global warming thing is a hoax that is just another excuse for the left to expand the size and power of government. The influence of human beings on climate change is minimal. There have been many periods in the earth’s history where temperatures have gone up, and they have gone down naturally. Back in the 1970s there was big scare about global cooling. There were people who were predicting that famine would result from that. Now global warming is all the rage although recent data indicate that the temperatures might be going in the opposite direction. Don’t hold your breath to hear the news media report that one! It’s not in their interest and against their agenda.

 

I fully agree with you position about kids not getting a proper education. Too many kids go to college today who would be better off learning a craft or a trade. I have infinite respect for the guy or gal who can repair my house or fix my car. The trouble is the image of those worthwhile professions does not get any respect these days.

 

For some people “college graduate” is an overrated accomplishment. It’s better to be an outstanding great trades person than an mediocre college graduate IMO. And yes I do have a MBA, but when it comes to working with my hands, I’m all thumbs. College was my calling; building and repairing stuff was not.

 

[Oldtrader3]

MBA: Surplus oil presently is in tanks, tankers and other storage all over the world. That is why OPEC refused during their last meeting to increase oil production, according to the New York Times. The problem, at the moment is Chavez threatening to cut off supply to the U.S. (we buy most of Venezuela's oil production) because of his overblown ego and dispute with Columbia. World markets for oil prices would be at about $75-80 per barrel if Chavez would shut up. There is, however, a long term problem with the non-renewable energy supply which needs to be addressed by engineers starting now.

 

Bill, I agree that 65% of our children should not be attending college. Some of them should be attending Junior Colleges or apprentice programs to learn a trade like electrician, machinist or carpentery. I also am an MBA, but (2) of my children are skilled tradesmen by choice. When I was an engineer, I worked with and had many friends who were jouneyman machinists and toolmakers. I ran an apprentice program for toolmakers at one time and we could not keep apprentices for the full four years. They would quit and get jobs as maintenance machinists as soon as they could. They only saw the short term view of increased salary and did not care about paying the apprentice time to become a mold maker at $30. per hour.

[BillJones]

A large part of the trouble with oil prices is that speculators in the futures markets are bidding up the price without. I'd like to know what good the futures markets do for mankind. I would really appreciate a reasonable explanation from someone. To me the futures markets are composed of financial vampires who are making life harder for working people. Maybe their purpose is to improve the cash flow for producers of commodities.

 

Sanity will return eventually to the oil prices, and some of these speculators will lose money. It will be truly ironic if a bunch of them go crying to the government for a bailout the way the mortgage lender are doing. The mortgage lends created their own problems with loans that should never have been made and “creative loan instruments,” like interest only loans that were doomed to failure. These people should take their losses, and if they go out of business so be it. The sad part is the CEOs of these companies who created this mess will probably walk out the front dollar with golden parachutes that will exceed the amount that I will earn in a lifetime of working and investing for doing a lousy job. That’s one of the BIG PROBLEMS with U.S. business these days. Executive incompetence gets rewarded.

[Oldtrader3]

CEO's always win. I was early retired because of a CEO who lied to Wall Street by doubling the annual earning's forecasts that the company division's forecast. Three hundred management employees paid for his little indiscretion by losing their jobs. He walked, some years later, with (3) years salary ($5MM), stock options equal to his salary, all his accrued options and a big going away party where all kissed his butt for being a "visionary" leader.

 

As we speak, Bear Stearns is being liquidated for 10% of it's much reduced capitalized value (at $2.00/share). Bear Steans was $30/share a month ago. Almost simultaneously, our President was on the radio telling everyone how strong and healthy our economy is. What magic mushrooms is he smoking?

[CHABSENTIA]

You missed two points.

 

1.Even if the Oil supplies/invenotry tripled or went up 10 times etc there is not enough Refinery Capacity to refine the regular blends let alone the different blends in different States because of different Environmental laws.. These Refineries have to shut down for Maintenance which means even less Refinery Capacity and resulting higher prices.

 

2. The Federal, State and Local tax on a gallon of gas which is $.48 nationwide and $.60 in New York.

[CHABSENTIA]

I believe that most of the increases in Employment have been in the Service sector which would make ot misleading.

[CHABSENTIA]

Depends. My Brother received a Degree in Electrical Engineering from VMI and after he resigned his Naval Commission and was working in the Public sector he went back to College and got his Masters. He is wroking in the Engineering field buy says that all of hese Engineers from India etc that the Government is letting in Special Visas are willing to work for less pay and are killing the Salaries.

[CHABSENTIA]

One of the problems is the Refinieries. Even if the Supply/Inventories of Oil tripled there is not enough Refinery capacity to refine it all. 85% seems to be an average and when they go down for Maintenance than that figure is even less so you have an artificial decrease in supply and an increase in price of a gallon of gasoline.

[MBA101]

Don't get me started on all the stoopid gasoline regulations, not to mention the environmental regulations that not only prevent any refinery building/expansion, but have put Ingersoll-Rand pumps out of business (of which I was an employee). We let government run our lives and dictate our needs and we get misery. And the more the government tries to do the more it screws us.

[CHABSENTIA]

Not tried to get anybody "started" didn't list the reasons for the lower capacity ot even the requirement for the different blends depending on State Regulatory Environmental regs.Didn't list the Federal, Local and State Tax on a gllon of gasoline which is an nationwide average of $.48 more.

 

Just listed one of the Major reasons for a high price for gasoline even though Inventories are high besides Speculators on the Commodities exchange,

[MikeInFL]

Don't get me started on all the stoopid gasoline regulations, not to mention the environmental regulations that not only prevent any refinery building/expansion, but have put Ingersoll-Rand pumps out of business (of which I was an employee). We let government run our lives and dictate our needs and we get misery. And the more the government tries to do the more it screws us.

 

While I agree with you in large part and I don't mean to belittle the pain you must have felt when I-R pumps went out of business, please tell us which state would allow another refinery to be built in it? Said another way, is the environmental concern a realistic concern to you, or should we continue to pollute without regard for the effects on the earth and all its inhabitants?...Mike

 

p.s. Back to the topic at hand -- gold is NOWHERE NEAR its all time high. The only way can be said to be at an all time high is to (erroneously) neglect inflation.

[MBA101]

Actually I bailed because I saw the writing on the wall. Wish I could have stayed, it was a fun place to work. Now it is gone. The company was a MANUFACTURER of Industrial pumps for Refineries, Power Plants (including Nuclear), and Chemical Plants. And the left complains about where the manufacturing jobs go when they are the ones that destroy them in the name of the environment. You can't have it both ways.

 

As far as pollution goes, there is so much regulation with that regard that we can build these plants without worry. Of course you are led to believe that anything involved with the burning of fossil fuels or nuclear energy will kill us all so we all go along with it and we end up not being able to afford the energy we need to live. The left wants us to live like we are in the 7th century, and we are letting them have their way.

[CHABSENTIA]

This is one of the problems. Many States don't want one built in their Backyard. This is also a problem because 50% of the Refineries are on the Gulf which is Hurricane prone so a direct hit could wipe out a good part of the 50% that has a 85% output under normal circumstances.I am sure you are aware last year of the fact that China and Cuba are exploring off the Coast of Florida for Oil but we are not allowed. to do it/ In that last Energy bill passed in Congress there was a stipulation that Governors of each State had veto power in deciding this exploration etc

 

Back to the grid. Inflation is not the main problem with the Price of Gold. In bad Economic times, people flee to Commodiites. I don't think it is a coincidence that gold started its rise at the same time that Heliocopter Ben started raising the Federal Funds rate 17 times and really started to move when the Credit Crunch became more widely known.