Gold And Silver Still On The Rise

[Mr Lee]

Do you think Gold will continue upwards?Gold could soar much higher In the late '70s, gold prices quadrupled in just 18 months. With demand for commodities high, and interest rates low, could gold hit $5,000 an ounce?Gold is different from other commodities in many ways. Still, the price of the yellow metal depends on the same three factors as oil or wheat: supply, demand, and financial conditions. Put them together, and the 20% increase since August might only be the beginning.Start with supply. Production from mines totaled 2,414 tons in 2008, worth $88 billion at the November 16 price. There will be more this year, but less from 2010 onwards. It will take years for new mines to come on stream. Recycling from scrap jewelry and official gold sales were worth $40 billion in 2008, but those sources aren't likely to cough up much more.One central bank has even become a buyer. India recently purchased 200 tons of gold from the International Monetary Fund. If China decided to put 10% of its $2.3 trillion of official reserves into gold, it would need to buy up almost three years' worth of production, at the current price.Such a big move isn't likely, but smaller shifts from central banks -- selling less -- could be enough to move the price, as long as other demand keeps up. That's likely. The long period of ultra-easy money may not be undermining the monetary system, but many people fear it might. Some of them will buy some more gold, just in case. With yields on government bonds so low, gold looks like cheap insurance.Indeed, financial conditions favor all commodities, gold included. Interest rates are low and banks are more willing to support investors and speculators than to lend to businesses and consumers. Besides, commodities look like a good store of value in the midst of unprecedented fiscal and monetary stimulus in a world of still significant imbalances.When money is easy and demand moves much faster than supply, prices can explode. In 18 months from July 1978, gold went from $185 per ounce to $850. That's $2,400 in today's dollars. And interest rates then were much higher than now. A similar price rise from here would bring gold to more than $5,000 per ounce. Could Gold go to $5000

[Mr Lee]

For those of you who may still be interested in Gold and silver, they both have hit new highs and I have to wonder when and where they will stop? Anyone care to guess?

[TheMason]

They got a big boost from the Dubai problems. Dubai World being on the verge of bankruptcy has reminded people that the financial crisis may be fading from the headlines, but only because people are tired of hearing about. I don't think the crisis is anywhere near over yet.I also don't believe the dollar is going to continue its downward slide. Yes, the US economy is in rough shape and debt is a serious problem but look around at other countries. They are not really in any better shape then the US is. When the quasi-govt. companies Fannie Mae and Freddie Mac were in trouble, the US stepped up and said they would not let them fail. When the quasi-govt. Dubai World hit financial problems, the Dubai govt. fell over each other running away and denying responsibility for the debt.Which govt. would you rather trust with your money? I think much of the anger and frustration at the US will fade, the economy will recover and the dollar will rebound. As for gold, the price has gone up so much that we just decided to up our monthly budget from 20k to 24k....woohoo! It's high living time at TheMason's house!I expect it to top out at about $1800 per ounce, maybe $1500. The people projecting the $2k and up are assuming a total breakdown of the US dollar and I just don't expect that to happen.As for the question about how to invest in gold, I only buy physical gold that I can take possession of. I don't want to own gold related stocks or gold mutual funds. I want the hard gold in my hot little hand. The best ways to do that are to buy gold bars, coins, or jewelry. My personal preference is for scrap gold or gold coins. Scrap gold is things like broken jewelry, tooth fillings, etc.The best source of scrap gold is pawn shops. Most pawnbrokers dispose of their excess gold inventory by sending it out to gold scrap buyers. They separate your gold by karat weight (12k, 14k, etc.), convert it to 24k weight equivalent, convert it to dollars at the current spot price, deduct a 7%-15% fee and send the cash back to you. If you're looking to buy physical gold, walk into a large pawnshop with $10-$15k cash in your pocket and you'll likely be able to get a price significantly below the current spot price since the broker doesn't have to pay the scrap commission. Of course, when you want to convert that gold back to dollars you'll likely need to use one of the gold scrap services and pay the commission to them so it's not a sure way to make money. If you opt for this method, you need to know how to tell the karat of gold by sight or invest in a test kit and test random samples of what you are buying.Gold coins are also a good way to go. They generally sell for anywhere from 5-15% over the spot price of gold depending on the rarity and quality of the coin in question. The American Eagle and American Buffalo are my 2 favorites, but Canada, Australia, South Africa, and the EU all sell gold coins. If you decide to go this route, the gold should be .999 fine and contain 1 ounce per coin. You should also inspect the coin and weigh it to ensure no gold has been shaved off the edges and that it weighs the correct amount. You can buy partial ounce coins if you want to but they are more expensive on a per ounce basis.

[Mr Lee]

Gold is on the move again and has hit a new high, and silver is not doing bad either. Anyone investing in Gold or Silver? Fox news on gold hitting over $1270

[Mr Lee]

So how high will it go? and does anyone on this forum really care? Gold breaks $1300 NEW YORK (CNNMoney.com) -- Gold soared to a record high early Friday, breaching the key $1,300-an-ounce level, amid persistent worries about the recovery.After reaching a peak of $1,301.30 an ounce, Gold for December deliver -- the most active contract -- eased to $1,299.80 an ounce. Gold's last intraday record high was reached on Sept. 22, when the metal hit $1,298 an ounce.

[Jollygoodfellow]

So how high will it go? and does anyone on this forum really care? Gold breaks $1300 NEW YORK (CNNMoney.com) -- Gold soared to a record high early Friday, breaching the key $1,300-an-ounce level, amid persistent worries about the recovery.After reaching a peak of $1,301.30 an ounce, Gold for December deliver -- the most active contract -- eased to $1,299.80 an ounce. Gold's last intraday record high was reached on Sept. 22, when the metal hit $1,298 an ounce.

Well I have no gold or cash for that matter but the news is saying the Aussie dollar will equal the US dollar early next year.Would that make it a better exchange rate for me in the Philippines or not? this stuff confuses me.

The Australian dollar has gained about seven US cents since September 1 to touch a 26-month high of 96 US cents on Wednesday night (AEST), amid economic data showing a weakening US economy and a strengthening Australian one.The sharp rise in the Aussie has sparked parity talk among currency traders, who now speculate the currency will reach one US dollar in early 2011.

http://au.finance.yahoo.com/news/-A-parity-help-prevent-rate-aap-2100695342.html?x=0

[Mr Tropic]

So how high will it go? and does anyone on this forum really care? Gold breaks $1300 NEW YORK (CNNMoney.com) -- Gold soared to a record high early Friday, breaching the key $1,300-an-ounce level, amid persistent worries about the recovery.After reaching a peak of $1,301.30 an ounce, Gold for December deliver -- the most active contract -- eased to $1,299.80 an ounce. Gold's last intraday record high was reached on Sept. 22, when the metal hit $1,298 an ounce.

Well I am reading all this about Gold and realize that Mr. Lee lives by the Golden Rule so I gotta figure he knows more than he is letting on about all the Gold stuff, right? LOL

[Mr Lee]

Well folks, GOLD just broke $1400 an oz, in case anyone is interested. 

[FlyAway]

I am surprised to silver so high. Yesterday it hit over $29 an ounce. I used to work for a large veterinary practice. Since the x-ray study volume was so high I put in a silver recovery unit. Silver was trading at less than $7 an ounce when I was recovering. I traded the raw flake for .999 processed bars. Now I feel better taking and holding the Silver versus the cash :cool_beans:

[Mr Lee]

Gold and silver seem to have hit a new high yet again. I wonder if any Philippine coins were ever made of silver and if so, where can they be bought?