Friday 12 August 2011
Posted by
Admin Hijrah Dinar
Back in April gold spiked to prices hovering around the $1500 range. At that time, Goldline International Inc. predicted gold would surge to $1700 per ounce by 2015...
Fast foward just about three months later, and we've already hit the spot. Today, Monday, August 8 2011: gold reached $1700, and is properly positioned to hike even further in response to Standard & Poor's slashing of the U.S. credit rating on Friday.
Despite the obvious conspicuousness of today's gold record,NewsNow indicates that gold hasn't quite peaked in the same manner as it did back in 1980 when gold jumped to $850 an ounce. Adjusted for inflation, that amount would be equivalent to $2,400!
$2,400 for an ounce of gold; is it possible? With all the fiscal dilemmas today? And maybe (most likely) more financial rekclessness tomorrow? Perchance.
Already, gold has gained 21 percent in the year 2011. The uncomfortable medley of market risks, credit downgrades, debt crises, currency fatigue, and an overall shaky economy create an overwhelming abundance of uncertainty. Investors are feeding that uncertainty with gold.
Here's a visual highlighting this year's gold gains up to August 5, 2011:
"Everyone was talking about Armageddon at the weekend and this morning, it's held the rot but doesn't remove the themes that have been driving the stock markets," said Saxo Bank senior manager Ole Hansen.
Amidst the Armageddon discussions, a feeling a woe regarding paper currencies presented itself as the dollar plummeted to record lows. Meanwhile, this idea seems to be permeating throughout the minds of analysts and investors: gold isn't just "a safe-haven," it is "the safe-haven"
Nobody trust anything else. A shiny lump of metal seems to be the only hope for investors.
Gold records weren't just set here in the States. Gold futures in China and India surpassed all previous records as well.
At the moment, there's really nothing holding gold back, nothing at all...
Fast foward just about three months later, and we've already hit the spot. Today, Monday, August 8 2011: gold reached $1700, and is properly positioned to hike even further in response to Standard & Poor's slashing of the U.S. credit rating on Friday.
Despite the obvious conspicuousness of today's gold record,NewsNow indicates that gold hasn't quite peaked in the same manner as it did back in 1980 when gold jumped to $850 an ounce. Adjusted for inflation, that amount would be equivalent to $2,400!
$2,400 for an ounce of gold; is it possible? With all the fiscal dilemmas today? And maybe (most likely) more financial rekclessness tomorrow? Perchance.
Already, gold has gained 21 percent in the year 2011. The uncomfortable medley of market risks, credit downgrades, debt crises, currency fatigue, and an overall shaky economy create an overwhelming abundance of uncertainty. Investors are feeding that uncertainty with gold.
Here's a visual highlighting this year's gold gains up to August 5, 2011:
Gold futures for December delivery
rose $51.70, or 3.1 percent, to $1,703.50 an ounce by 8:22 a.m., after
earlier jumping as much as 4 percent to a record $1,718.20 an ounce on
the Comex in New York.
That was the biggest intraday gain since Nov. 4. Silver for September
delivery rose 3.9 percent to $39.69 an ounce in New York.
S&P cut the U.S.’s long-term
rating one level to AA+ from AAA on Aug. 5, describing the outlook as
“negative,” and criticizing the nation’s political system for failing
adequately to address deficit reduction. Equities sank today, extending the market’s rout, as oil slumped.
This complicated combination of negativity initiatally
created a lot of fear. That fear has produced some pretty remarkable
results for gold. In the past month alone, investors have bought more
gold than the previous six. The downgrade just before this past weekend
was the final straw for many investors that were holding off on running
to gold for some sort of comfort in these tumultuous times."Everyone was talking about Armageddon at the weekend and this morning, it's held the rot but doesn't remove the themes that have been driving the stock markets," said Saxo Bank senior manager Ole Hansen.
Amidst the Armageddon discussions, a feeling a woe regarding paper currencies presented itself as the dollar plummeted to record lows. Meanwhile, this idea seems to be permeating throughout the minds of analysts and investors: gold isn't just "a safe-haven," it is "the safe-haven"
“There’s just a pessimism or nervousness that’s associated with economies and currencies of these major nations,” Gavin Wendt,
director at Sydney-based Mine Life Pty Ltd., said by phone. “At a time
when investors are nervous of currencies, they’re nervous of equities,
they’re nervous of everything, the only place for them to park their
money is gold.”
About $5.4 trillion in global equity value has been erased since July 26, according to Bloomberg data, after Europe’s
debt crisis worsened, reports on U.S. manufacturing and consumer
spending showed the world’s largest economy was slowing and a political
impasse over the budget deficit brought the American government to the brink of default. The S&P 500 slumped 7.2 percent last week for its worst plunge since November 2008.
Even Treasuries are losing a bit of their appeal as investors just
aren't confident enough in them either. Gold maintains its strong
potential to advance as investors look for bullion over U.S. Treasuries
as a haven. Gold is still the only true "anchor of stability."Nobody trust anything else. A shiny lump of metal seems to be the only hope for investors.
Gold records weren't just set here in the States. Gold futures in China and India surpassed all previous records as well.
At the moment, there's really nothing holding gold back, nothing at all...
Category:
Gold Saving / Investment
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