Gold jumps to record as inflation looms...

[Jeff240sx]

Pretty much Bloomburg says it all...

Oct. 6 (Bloomberg) -- Gold rose to a record on speculation that currencies will depreciate, spurring inflation and boosting the appeal of the precious metal for investors seeking to preserve their wealth.

Gold futures climbed as high as $1,045 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price is headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.7 percent against a basket of six major currencies.

“Gold is acting like the ultimate currency,” said Chip Hanlon, the president of Delta Global Advisors Inc. in Huntington Beach, California. “Central banks are following the same monetary course and trying to stimulate and inflate their way back to growth. Everyone’s concerned about the dollar, but it’s not like you can hate the dollar and fall in love with the euro or the yen.”

U.S. President Barack Obama has increased the nation’s marketable debt to an unprecedented $6.78 trillion as he borrows to spur the world’s largest economy. Goldman Sachs Group Inc. predicts the country will sell about $2.9 trillion of debt in the two years ending next September.

Gold futures for December delivery climbed $24.40, or 2.4 percent, to $1,042.20 an ounce at 11:16 a.m. on the Comex division of the New York Mercantile Exchange. Prices may reach $1,400 within six months, Hanlon said. Gold for immediate delivery in London gained as much as 2.6 percent to a record $1,043.78. The metal has climbed 18 percent this year.

‘Just Begun’

“Gold has just begun its ascent,” said John Brynjolfsson, the chief investment officer of Armored Wolf LLC, a hedge fund in Aliso Viejo, California. “As central banks print more and more money, the private demand for gold as an investment and inflation hedge is destined to grow. It’s pretty clear that gold will be at $2,000 by 2012, and it could happen a lot faster.”

Expectations of higher consumer prices are building. The difference between rates on 10-year notes and Treasury Inflation Protected Securities, which reflects the outlook among traders for inflation, widened to 1.84 percentage points from almost zero at the end of 2008. It averaged 2.2 percentage points in the past five years.

Linky

[Josh]

you crazy gold-bugs...there's no inflation!

[TNathe]

cough$1091.00cough

[BAMF]

So whens its going to jump like oil did? Thats what I wanna know, because thats when I wanna invest.

[Joe]

Originally Posted by BAMF

So whens its going to jump like oil did? Thats what I wanna know, because thats when I wanna invest.

This last little pump up came from India dumping some of their USD reserves in favor of gold... this type of activity will start to happen more and more as the dollar heads downward...

[Josh]

Originally Posted by BAMF

So whens its going to jump like oil did? Thats what I wanna know, because thats when I wanna invest.

probably about the time you want some. i'll have some to sell you if you're interested.

in all seriousness, why buy as it's rising....the idea is to by low and sell high. speaking also of oil....it's gonna take out its high too. have some of everything...gold, silver, oil, etc...

[TNathe]

read a report that last year alone US Citizens bought 12 BILLION rounds of ammunition for firearms, surpassing ANY other year by 2 billion. we got ammo too apparently.

[BAMF]

That further supports my investing tactic.

Lead > Gold

[TNathe]

tru story

[Jeff240sx]

http://www.bloomberg.com/apps/news?p...96oKRoh0&pos=1

There's your problem, right there.

[BAMF]

Quoted from above

The Fed completed its $300 billion program of purchasing Treasuries last month. Today’s statement said the central bank will purchase a total of $1.25 trillion of agency mortgage- backed securities and “about $175 billion of agency debt” through the first quarter of next year.

Jesus fucking Christ.

[Josh]

Originally Posted by BAMF

Quoted from above




Jesus fucking Christ.

where do you think they're getting the money? they're going to print it. it's not like we're sitting on a pile of cash we've been itching to use. so essentially our currency is now backed by worthless mortgage backed securities, which will never be worth anything ever again. home prices aren't going to go back to bubble levels.

but for the optimists that will show up later....for housing prices to return to their nominal ascent, i'm confident that inflation would be well into the double digits where the first number isn't a one or two. maybe that's the plan...who knows, but what's it matter if your condo appraises at a million us dollars when you have to spend 10,000 usd to fill the fridge - so even if home prices resume their nominal ascent, the dollars these obligations promise to pay will be confetti - in effect making them worthless anyways. they are worthless, and this is basically my worst nightmare unfolding in front of me.

greenspan was the worst fed chairman in history, but damn it bernanke is trying really fucking hard to take that title.

[Josh]

add this to it

http://money.cnn.com/2009/11/04/news...ion=2009110419

Unemployment Benefits get extended an extra 20 weeks, and the home buyer tax credit gets extended until April 30 2010....and it extends to people who already live in a home, but want to buy a more expensive home.

if that's the case, why don't we really let people upgrade, why not give them 80,000? the reason 80,000 is no good is because 8,000 is no good. this is absolute insanity.

so it looks like the plan is to inflate to get home prices to rise again, and we're still stuck in the bubble delusion that home price appreciation = wealth creation, and that dynamic is somehow the key to a great economy. this can't end well.

[Joe]

The real problem is that wages will not follow inflation...

That's when people will truly feel the pain.

[Josh]

correct...wages will be of the last prices to rise.

[fencerider2]

Jesus Fucking Christ man, I have some gold that cost me nothing, but I am so excited I just wet my pants.

BTW, I have other hard asset that have a greater return than Gold over the last Ten years. Now go wet your pants.

[TNathe]

$1,115.00 whaaa! Shit might actually make that $2k mark some have been talking about by the end of next year

[fencerider2]

Just wait, when all those levered up mothefuckers with that cheap carry trade money decide to dump. Some people are going to get their assholes ripped open.

[Josh]

the carry trade for the yen lasted for better than a decade -- the dollar carry trade just started and will persist especially since interest rates will remain exceptionally low for an extended period. the carry trade is a small piece of the puzzle though...that's not why the dollar has been falling.

with all the bad things you're talking about that will come to fruition, where's the will for the fed to raise rates going into another downturn?

[Josh]

also....

11%+ in 60 days.....



how much is the s&p up?