Gold strikes record just below $US1200

[G_j]

http://www.theaustralian.com.au/business/markets/gold-strikes-record-just-below-us1200/story-e6frg92f-1225804427225

Gold strikes record just below $US1200
Devon Maylie
From: Dow Jones Newswires
November 27, 2009 7:04AM

GOLD defied market expectations for a holiday-thinned correction and hit a new record high above $US1195 a troy ounce, before then trading lower as the euro dipped against the US dollar.

News of further central bank gold buying, the renewed US dollar weakness and concerns about debt kept the precious metal well bid, and could send it to $US1200/oz in the coming days, traders and analysts said.

But trade will be lighter with the US out for the Thanksgiving holiday, so the metal could be easily moved.

Spot gold was trading at $US1185.10/oz in London, down 0.4 per cent from yesterday's close. It hit a high of $US1195.10/oz.

The trading pit of the Comex division of the New York Mercantile Exchange was closed for the US Thanksgiving holiday, but electronic trade was open and the December contract hit a high of $US1195/oz and February $US1196.80/oz.

Debt markets were still digesting the news that Dubai World had requested "a debt freeze," said Standard Bank analyst Walter de Wet.

..more..

[doc03]

1. When you see headlines such as those it's time to get

out of the gold market now. I've seen it time and time again, the silver bubble, dot com IPO bubble, Dow 14000, real estate etc.

[aint_no_life_nowhere]

2. What do you trade in the gold for? Dollars? Or will the dollar eventualy slide further?

I'm just curious, as I no longer invest in stocks or anything else since losing a lot of money in the 1987 crash. The dollar has lost a lot of its value. Stocks are a big gamble. Real estate had a bubble. I've heard of some people keeping half their money in dollars, half in euros. Is there a reasonably safe and conservative type of investment to be made anymore?

[doc03]

5. I am not any expert, that's just my observation

over the years. When the general public starts getting excited about the hot investment of the day that's when those with the big bucks cash out. Remember when the NASDAQ index was over 5000 and every day some dot com company was coming out with an IPO, as soon as the average Joe got in on the scam the people with the money split. The NASDAQ hasn't recovered half it's value to this day. Then there was the silver speculation back in the early 80's the silver prices were going through the roof and the average Joe was buying up bullion and then it crashed, silver prices haven't recovered yet after 30 years. Myself I have my money in bank CD's and a conservative asset allocation fund.

[AllentownJake]

4. Dubai just blew up

Gold is going to be higher tomorrow.

[Andy823]

9. Like the oil bubble

It kept going up to, and people kept saying "buy oil futures" and "oil could hit $200, not is the time to buy oil". From $140 a barrel down to what something in $30 range in just a few months! I wonder how many people lost their shirts on oil last year? My brother in law has been suckered into these kind of things. He lost over $10,000 buying in to the Ostrich business some years back, then got into the oil future thing and lost a bundle on that. He also lost in the dot.com bubble. He tried to get me to buy in with him on the Ostrich thing, and I tried to tell him it was a really stupid idea. He always seems to get in right before the bubble bursts and then "waits" it out thinking things will go back up, which it never does.

I am not an expert on this either, but it sure looks like the same bubble mentality going on with gold, and that could very well mean the same kind of bubble "bursting" in the near future. I agree with you, when the pressure is up like this it should be a warning!

[AllentownJake]

10. T-bill yields were negative last week

Something is going on. People were willing to pay the government insurance to keep their money safe.

[G_j]

11. ==

should be 'interesting'...

[Elwood P Dowd]

3. I own some 1894 Gold Eagle $20.00 coins in AU condition.

Might be time to sell.

[Art_from_Ark]

7. Some dealers are paying up to $1300 for AU double eagles

That's quite a jump from the first time I saw a double eagle offered for sale, in 1967, for $60

[Elwood P Dowd]

8. I think I only paid about $350.00 for them back in the 1990s.

What's sad is they're about the only thing I have left that's worth much.

[pscot]

6. I bought a gold producer ETF

last spring, thinking it would be a good idea to have a little hedge against inflation. I'm up 40% plus. Who knew? Smart? Not me. Just dumb luck.

[liberalla]

12. It's down a bit now to 1160.40

That's OK. It will fluctuate, but I expect it to rise some more.


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