Gold Hits Fresh Most-Active-Record High

inspector_monkfish

13:48 06Nov09 MARKET TALK: Comex Gold Hits Fresh Most-Active-Record High
DJ MARKET TALK: Comex Gold Hits Fresh Most-Active-Record High

1348 GMT GMT (Dow Jones) Comex gold extended its overnight gains following U.S. non-farm payrolls data, even though stock-index futures are softer and the euro has not made progress.

December gold peaked at $1,099 an ounce, taking out Wednesday's most-active-contract record high by 50 cents. It was at $1,093 two minutes ahead of the data.

Meanwhile, the euro is at $1.4827 compared to $1.4859 minutes ahead of the data, while December stock-index futures are down 5.20 points in overnight screen trading. (ALS)

Euphoria1z

is it too late to invest in gold now? or is it similar to property that hold it long enough and it will double in value over time? if you had to invest now, would you invest in gold or property?

Really2

Euphoria1z wrote: »

if you had to invest now, would you invest in gold or property?

I cant live in bullion. (or you would need a fair bit to live in it)

Houses hold a different kind of value.
I think has a comparison BTL is more like shares than gold. (go up and down but also pay a dividend (rent)
Owning to live in is like neither.

nearlynew

Gold is the currency of kings

Silver is the currency of gentlemen

Barter is the currency of peasants

Debt is the currency of slaves

Really2

nearlynew wrote: »

Gold is the currency of kings

Silver is the currency of gentlemen

Barter is the currency of peasants

Debt is the currency of slaves

Bronze is has good a medal GB athletes can usually hope for.:)

Really2

MissDBoat wrote: »

Oh I don't know. I'm supporting our boys and girls come 2012.

So will I, but in reality that will be the case for many (but bronze is a great goal, it's still a massive achivement) .

Have we found any money down the back of the sofa yet? I believe they are cutting funding not increasing it.

Anyway sorry, the joke took it a bit OT.

Degenerate

Euphoria1z wrote: »

is it too late to invest in gold now? or is it similar to property that hold it long enough and it will double in value over time? if you had to invest now, would you invest in gold or property?

"It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."

-Warren Buffet

dopester

Euphoria1z wrote: »

is it too late to invest in gold now? or is it similar to property that hold it long enough and it will double in value over time? if you had to invest now, would you invest in gold or property?

Neither. Not at current prices. I believe gold is in big-bubble territory price.

That said, gold might be cheap when considering all the extraordinary risks that are with us.

(eg: if more banks going on to fail, UK gov deciding it can no longer afford to support bank bailouts, guarantees about deposit compensation withdrawn... UK going bankrupt / mega-inflation if they go totally crazy and really go all out in trying to create inflation against all the necessary rebalancing deflationary forces.)

If you didn't include all those risks, I'd mark gold down as so very over-valued.



http://seekingalpha.com/article/171164-the-new-gold-rush-lots-of-risk

jim83

dopester wrote: »

If you didn't include all those risks, I'd mark gold down as so very over-valued.

You could have just said "If you don't include the things that set the price, the price would be different."

I disagree with the price calculations in the article you linked to - gold effectively had a fixed price up to the end of Bretton Woods, so it's slightly disingenuous to base a "zero inflation value" on those prices. It would make more sense to do so based on the prices once gold had found its level in the years after 1971.

CPI adjusted gold since 1968 (USD)

We might be seeing a short-term top soon, but I'd say gold has a long way to go before it hits bubble territory.

dopester

jim83 wrote: »

You could have just said "If you don't include the things that set the price, the price would be different."

We might be seeing a short-term top soon, but I'd say gold has a long way to go before it hits bubble territory.

True for the first part. Nevertheless, my (small) gold holding more than trebled in value since 2001, buying at £216 a kruger. Regulars here know I'm honest.... not a big brag because I didn't and couldn't buy much at that stage, but felt gold it had a lot of upside.

{edit: Image removed at source by dopester.}

Even the slightly larger holding I bought in 2005 at £274 a Kruger, prices are way more than double that today, with krugers priced up to buy at bullion dealer at around £670-£700 per Kruger (which to me is very very expensive indeed).

By the way, I'm sold my gold for a price close to today's dealer prices in mid-late 2008. All apart from 5 oz*, which I don't care if crash 50%-90% in value - or perhaps you're correct and gold will go on to mega ride upwards in value even further. (*An end-of-the-world barter to another country type of holding.)

tommy75

dopester wrote: »

True for the first part. Nevertheless, my (small) gold holding more than trebled in value since 2001, buying at £216 a kruger. Regulars here know I'm honest.... not a big brag because I didn't and couldn't buy much at that stage, but felt gold it had a lot of upside.



Even the slightly larger holding I bought in 2005 at £274 a Kruger, prices are way more than double that today, with krugers priced up to buy at bullion dealer at around £670-£700 per Kruger (which to me is very very expensive indeed).

By the way, I'm sold my gold for a price close to today's dealer prices in mid-late 2008. All apart from 5 oz*, which I don't care if crash 50%-90% in value - or perhaps you're correct and gold will go on to mega ride upwards in value even further. (*An end-of-the-world barter to another country type of holding.)

So you think we are at a peak for gold? I nearly bought a couple of kruggerands today from chards for sentimental purposes. I don't have a clue about metal prices and views are extreme one way to the next. I've heard big drops and I've heard upto 6k per ounce in the mid-term as stocks 'bad news=more false rises' and property 'we will do anything to stop falls unless we can't do anything else' are hardly somewhere safe to put your money.