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| Gold Hits New Record High, Skirts $1,200/oz. | | Print | |
| Written by Steven Yates | ||||||||||
| Tuesday, 01 December 2009 19:00 | ||||||||||
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Early Tuesday morning, gold’s spot price reached $1,198.70, as opposed to $1,179.10 late Monday in New York. Gold had fallen to below $1,140 an ounce last week. According to Michael Lewis, head of commodities research at Deutsche Bank, seasonal factors are likely to drive the price of gold still higher, with downside risks unlikely before January. Lewis said, “We see $1.55 in the euro dollar, so that is where we think the main catalyst is for new highs for gold. There is normally quite a strong seasonal pattern in the dollar, (and that) will be driving a further rally in gold.” The dollar has fallen against other fiat currencies, including "DXY," a basket of six currencies, amidst worries over Dubai’s debt, an interest rate hike in Australia, and the rising euro. Gold prices began soaring in November with news that India’s central bank had bought 200 tons of gold. That was followed later in the month by announcements of gold acquisitions by Russia, Sri Lanka, and Mauritius. Gold prices rose 13 percent that month. As the dollar weakens, dollar-priced commodities will be cheaper for holders of other currencies and more expensive in a dollar-based market. Crude oil, for example, rose by nearly 1.5 percent Tuesday morning to slightly over $78 a barrel. We can probably expect a spike in gas prices reflecting the rise in the price of oil relative to the value of the dollar. Silver and platinum are two other precious metals to watch. On Tuesday morning, the spot silver was bid at $18.75 an ounce against $18.45 an ounce; and platinum was bid at $1,470 an ounce against $1,452. Later in the day, the former was flirting with $19 an ounce. Both metals offer additional evidence of the dollar’s progressive weakening, as both show indications of going still higher. Since last year’s near-meltdown, the U.S. government has printed well over a trillion fiat dollars. If the money creation spigot continues turning out unbacked fiat dollars unabated, the value of the individual units can hardly help but fall due to their sheer quantity in the world. Were central banks both here and abroad not sitting on them, we would have seen massive price inflation by now. One must wonder how long the powers that be can stem the tides of a destructive hyperinflationary spiral in the world’s largest economy. Trackback(0)
Comments (5)
HeavyHeart
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The weakening dollar propelled gold prices in American markets almost to $1,200 an ounce Tuesday morning, 
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Lack of confidence I've never seen or felt such a distrust and disgust, by those citizens who are even remotely aware of this country's and the worlds economic situation. We're being lied to daily by the Fringe Media, by the Local, State, and Federal Administrations, by Academia, etc. I have almost 100% of my liquidity into precious metals.. not because I want to, but because I see no way out of this sewer that continues to be dug and all the money that is being poured into it. And it is happening all around the world. God help us all through the trying times ahead. |
Bonnie
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And the dollar continues its slide to oblivion A United States double eagle was a gold coin with a face value of $20. It contained 0.96750 ounces of pure gold, last minted in 1933. Gold just hit $1200 an ounce. Using these numbers, the dollar has lost about 98.3% of its value in the last 76 years! Think that's scary? Just wait until we hit the NEXT dip! |
Steven Yates
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... As of 9:35 pm EST according to Kitco.com gold was checking in at $1,207/oz. & silver at $19.24--higher than when I wrote this article early this afternoon! |
Bonnie
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Apologies to Johnny HOW HIGH'S THE GOLD, MAMA? ELEVEN HUNDRED AND RISIN' HOW HIGH'S THE GOLD, PAPA? ELEVEN HUNDRED AND RISIN' WE CAN MAKE IT THROUGH THE MONTH WITH WHAT'S LEFT IN THE BANK THAT'S THE ONLY THING WE GOT LEFT THAT AIN'T SANK IT'S ALREADY OVER ALL THE STOCKS AND BONDS, ELEVEN HUNDRED AND RISIN’ HOW HIGH'S THE GOLD, MAMA? ELEVEN HUNDRED FIFTY AND RISIN' HOW HIGH'S THE GOLD, PAPA? ELEVEN HUNDRED FIFTY AND RISIN' WELL, THE BANK IS BROKE, I'VE LOST MY HOUSE THE CHILDREN ARE SLEEPIN' WITH A HOMELESS MOUSE MAMA'S IN FERN'S UP PAST HER KNEES, ELEVEN HUNDRED FIFTY AND RISIN' HOW HIGH'S THE GOLD, MAMA? TWELVE HUNDRED AND RISIN' HOW HIGH'S THE GOLD, PAPA? TWELVE HUNDRED AND RISIN' HEY, COME LOOK THROUGH THE CAR'S WINSHIELD, THE BUS IS COMIN', GONNA TAKE US TO WORK THE FIELD LOOKS LIKE WE'LL BE BLESSED WITH A LITTLE MORE INFLATION, TWELVE HUNDRED AND RISIN' HOW HIGH'S THE GOLD, MAMA? TWELVE HUNDRED FIFTEEN AND RISIN' HOW HIGH'S THE GOLD, PAPA? TWELVE HUNDRED FIFTEEN AND RISIN' WELL THE STIMULUS HAS FAILED TO PREVENT THE CRASH WE GONNA BE GIVEN SOME NEW PAPER TRASH WE CAN'T COME BACK TILL THE INFLATION COMES DOWN, TWELVE HUNDRED FIFTEEN AND RISIN' WELL IT'S TWELVE HUNDRED FIFTEEN AND RISIN' |
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