Gold At 23 Year High

Gold near 23-year high
Mon Dec 5, 2005 11:02 AM ET

By Clare Black

LONDON (Reuters) - Gold held near 23-year highs on Monday after another round of fund buying spurred by worries over inflation and by a strong appetite for commodity investments.

Despite some prospect of fund liquidation, runaway gold prices boosted other precious metals, with platinum at a near-26-year high, while silver hit an 18-year peak.

Spot gold briefly hit $508.25 a troy ounce before easing to $505.50/506.30 by 1533 GMT, up from $503.00/503.80 last quoted in New York on Friday.

Gold climbed to $509.20 in February 1983. Anything above that level would take the metal to its highest since January 1980, when it hit a record $850.

"The market is maybe not quite as euphoric as it was last week when we finally broke $500, but it is prompting a lot of interest that has been reported around the world and is attracting fresh buying," said Frederic Panizzutti, analyst with Swiss-based MKS Finance...cont'd

http://today.reuters.com/business/newsArticle.aspx?type=ousiv&storyID=2005-12-05T160221Z_01_FOR529841_RTRIDST_0_BUSINESSPRO-MARKETS-PRECIOUS-DC.XML&src=cms


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By Alex Richardson

SINGAPORE (Reuters) - Japan's yen slid to multi-year lows versus a clutch of currencies on Tuesday and hit an all-time trough against the euro, while inflation fears powered gold to its highest level in nearly 25 years.

Rising oil prices and weakness in technology stocks such as Tokyo Electron Ltd. and Advantest Corp. checked most Asian stock markets, but optimism about the South Korean economy propelled Seoul shares to a record high.

Oil paused below $60 a barrel, but analysts predicted an extended chill in the northeastern United States would push prices upwards -- sparking concerns that higher energy costs will hurt corporate profits.

http://za.today.reuters.com/news/NewsArticle.aspx?type=businessNews&storyID=2005-12-06T131321Z_01_ALL647659_RTRIDST_0_OZABS-MARKETS-GLOBAL-20051206.XML

BTW, is that image on your posting from the 60's band called the Rascals?

I'll try again.

Don't Get Excited About Dow 11,000

:hi:

if it gets down in the $480-$490 range before the end of the year, i'd suggest buying all you can then.

conversation
What Do Rising Gold Prices Mean?
http://www.lewrockwell.com/paul/paul293.html
The market price for an ounce of gold rose to over $500 last week, a significant milestone for economists watching precious metals and commodities markets. The last time gold topped $500 was December 1987, in the wake of the “Black Monday” stock market collapse earlier that fall.
snip
Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. Even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception.

President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Federal Reserve and U.S. Treasury have employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the money supply, and the financial markets. In other words, fiat dollars have no intrinsic value.

What does this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses.

December 6, 2005

Dr. Ron Paul is a Republican member of Congress from Texas.

Sounds like we are about to have a very bad time. :scared: