June Gold Hits $600 an Ounce

June Gold Hits $600 an Ounce NEW YORK (AP) -

Fund buying enabled the New York precious-metals to close sharply higher Thursday, with gold hitting its strongest level in a quarter century.

Traders cited generally strong sentiment and chart-based momentum in gold and silver, with stronger crude oil and recent dollar weakness also playing a role.

The most-active June gold contract settled up $7.20 to $599.70 an ounce on the New York Mercantile Exchange. It peaked at $601.90 overnight, the first time such gold futures have been over $600 since early 1981.

The nearby April contract settled up $7.30 to $595.20 an ounce. This remained below the psychological $600 level, however, peaking at $595.60.

more...

http://www.lasvegassun.com/sunbin/stories/invest-corp/2006/apr/06/040608061.html

Yo, Mojo!

:hi:
dbt
Remember New Orleans

glad I refinanced..

No reason to believe oil is coming down any time soon.

Didn't kill us then. Won't now.

Redstone

but those 18% mortgage rates and the S&L collapse that followed came close to.

gold's a barometer, and the barometer is predicting a storm ahead.

what is $750 in 1981 dollars worth today.

Would you believe over $2000?

double digit inflation, 'course double digit in interest on CD's back then too.

or monetary instability. With Bush at the steering wheel, I'd say both of those are a strong possibility.

But I'm wondering - how much of this is investor-driven? I've noticed Ed Schultz is pushing the stuff on his radio commercials..."Buy now, before it goes up". Even Randi Rhodes is pushing for people to buy in "while it's still low".

The problem is, this market could be driven by a lot of hype, and it becomes a self-fulfilling prophecy.

By the way, I do not believe we're going to attack Iran. Russia & China smacked Bush on his fingers with a ruler for trying.

I keep seeing new-style bills, and I wonder whether there is going to be a big inflationary event soon.

Tucker

They discontinued the M3 report.

That's my guess.

Hype and smoke and mirrors, and pay no attention to the man behind the curtain, if you please.

Redstone

(Econ 102 - the week before the final)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B55621F78%2D5E02%2D4773%2D8E7C%2D7A07CE297D2F%7D&tool=1&siteid=bigcharts&dist=bigcharts
Traders say investment shift sets up $1,000 price by 2010

SAN FRANCISCO (MarketWatch) -- Gold has reached $600 an ounce for the first time since 1981 but the real surprise will be where it goes from here, with experts predicting a drop in the near term that could clear the way for four-digit prices in the next few years.

"Gold at $600 an ounce might be a surprise to many, but these are the same people that were surprised when gold hit $300, when it broke $400 and when it moved to over $500," said Emanuel Balarie, a senior market strategist at Wisdom Financial.

"Most likely, they will still be surprised when gold hits $1,000 an ounce," which could come in the next three to four years, if not sooner, he said.



http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B01EF8E64%2D33BE%2D44EE%2D9145%2D33EEC63136C8%7D&dist=newsfinder&symbol=&siteid=mktw
Gold revival a lesson in investing
Commentary: Why doomsayers are usually wrong

We haven't heard from you lately, at least not the way we used to. That was back in the day, only four or five years ago, when gold prices were languishing between $250 an ounce and $300 an ounce, having gone nowhere but down for 20 years.

You were a gold bear. Nay, a mega-gold bear; telling anyone who would listen that gold was a dead metal, an outdated investment with no real reason to still exist in the global financial system. After two decades of poor performance, you had written gold off.

Well, look at you now. Gold is about to pass $600 an ounce for the first time since January, 1981. Investors who believed -- and there were plenty of them -- have doubled their money. Buyers of silver, platinum and copper have also prospered. See full story.

And oil? Forget about it. Remember those who said there was really no reason that oil would ever be above $20 a barrel again? That was back in the late 90s when it was around $15 a barrel. Now it's pushing $70.



http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nTP244766
ANALYSIS-Heavy on metal, funds return with gusto
The big boys are in with their hedge funds - it's going to be a bumpy ride - look back to what they were doing with oil

TAIPEI/SINGAPORE, April 6 (Reuters) - Seemingly turning their backs on oil, the world's powerful investment funds that comb the planet for big returns are placing bold new bets on metals.

Enamoured both by the glitter of gold and the more workmanlike copper, funds are expected to drive the two metals to peaks that could be key psychological turning points for markets.

Gold looks unstoppable in its march to $600 an ounce -- the highest in more than a quarter of a century -- while copper is rippling through record after record towards $6,000 a tonne.

Some analysts say that since the start of the metals boom at the end of 2003, gains by commodities such as copper have lagged those in oil, but the recent steeper rises reflect the inflow of new fund money that will support higher gains in base metals.

"The story played out first in oil, but it's the same story about underlying strong demand growth and finite capacity for supply side to react," said Michael Coleman, managing director of the Singapore-based hedge fund, Aisling Analytics.

...And oil? Forget about it. Remember those who said there was really no reason that oil would ever be above $20 a barrel again? That was back in the late 90s when it was around $15 a barrel. Now it's pushing $70...

Incredible.

out of the picture before gold hits the K per oz.

Silver was $7.50 a year ago and hasn't been above $12 since 1983.