Gold Futures Hit $999
From WSJ:
April gold futures are expected to open floor trading in New York around $16 an ounce higher Friday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. March silver is expected to be up 40 cents an ounce.
Gold seems to be going through the roof. I wonder if gold is going to be last year's oil. I have been selling some of my gold since we are in time of deflation. And it should bring gold prices lower also.
Investors continue to buy gold on a "fear factor," with the metal now back above $990 an ounce, said George Gero, vice president with RBC Capital Markets Global Futures. This is occurring amid ongoing worries about the banking sector and a continued sell-off in equities, he said.
"Unprecedented" investor demand is fueling the rally, as the "traditional" drivers of gold such as jewelry and fabrication demand, combined with dollar strength and mine supply, otherwise would be consistent with a "considerably lower" price, said J.P. Morgan analyst Michael Jansen.
Much of the buying is due to the fear of a collapse in the financial system. If this keeps up, how long before gold is banned? If you think this can't happen in the US, there is already a precedent. President Roosevelt signed executive order 6102 - "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates."
http://online.wsj.com/article/SB123513686761333121.html
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1 comment:
We haven't seen the worst yet. A first year econ 101 student can tell you we can't borrowing our way out of debt. A Recesession or depression is not the worst thing that can happen. The worst thing is to have people loose faith in the dollar and walk away from it. And the best way to make that happen is to drive the value of the dollar down by printing trillions of dollars and injecting it straight into the economy, which is what we are doing right now.
Executive order 6102 was instituted so that the U.S. could hold real wealth, via gold, while Roosevelt devalued the dollar so the U.S. debt would be easier to pay off. http://emsnews2.wordpress.com/2009/02/04/1933-terrorizing-people-into-handing-over-gold/
When gold and other precious metals become the new currency do you think the government will want our useless paper money? No way they will want gold...your gold. Remember there has already been a precident set for it. All they have to say is: "These are unusual times...we have the nations best interest in mind...we will pay you back later and you will actually make money."
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