Eddie Elfenbein points out that Gold is now higher than the S&P 500.

S&P 500 at $909.

Gold at $930

This is some pretty wild stuff . . .

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Gold Weekly (cash contract)Gold_weekly_cash

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SPX Weekly

Spx_weekly_10_years

Category: Commodities, Credit, Markets, Trading

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

118 Responses to “Gold Higher than the SPX”

  1. Marcus Aurelius says:

    Should have been:

    As anyone who had to flee Europe in the ’30s or ’40s can tell you how valuable gold is vs. paper currency.

    Gevalt.

  2. Caesar Licentious says:

    Not pulling leg. I guess I don’t know enough to communicate w/ you intelligently on this subject. Oh well, thanks for trying.

  3. The S&P is an index and not a dollar value.

  4. Bruce in Tennessee says:

    Fine. If you are sincere, read every damn thing you can get your hands on about investing…

    You will never regret it.

    Then make your own invest decisions.

  5. dgoverde says:

    Winston,

    That’s two great quotes in a row tonight. You are a paragon of exceptionalism!

    dgov

  6. buy-curious says:

    Sitting on a niiice pile o’ cash in my IRA, since 1999. Yep, missed all those early millennium nasties, and the subsequent opportunities. Spent all my other money paying off both my houses and other debt, and building a debt-free small business that can make payroll without borrowing.

    And now we sit poised on the brink of either a generational investment opportunity, or ringside seats to Thunderdome. Somehow, I thought it would be easier to find a re-entry point.

    Well, doing nothing in the market for ten years has certainly put me well ahead of many of my buy-and-hold brethren, over the last decade. Perhaps I should continue to do exactly that, nothing.

    Thoughts?

  7. Caesar Licentious says:

    Thanx Bruce, I trade currency, but I’m a technical trader, I only read charts and don’t know about fundamentals.

    Is there an economic collapse primer on the web you can link me to? Just kiddin.

  8. Noah says:

    Gold is money. As the crisis continues, governments and central banks will print and bailout. There will be less trust in currencies and the debt behind them. Denying this is having your head in the sand. Denying the size and severity of this is having your head in the sand. Gold tends to do well in deflation. People have been arguing this for many months, and look at where we are now. You saying it was better to invest in the good old financial system of the Ole US of A? Or GE? Or Yahoo? Or IBM? Or Freeport McMoran? Or Potash? Or Dryships? Or oil lately? Even the plays that worked are getting completely destroyed. Except gold. Even as the dollar has strengthened, gold disconnected from the currency trade. Clearly, something else is at play here.

    As govt’s deal with their own severe recessions, bailouts/printing occurs to reflate, currencies are debased, confidence is extinct, and trust is no where to be found, there will be more demand for gold. CB’s are slowing down/stopping their gold sales; check out the news.

    Gold inflation adjusted is around $2,200 an oz! The gold trade has not gone parabolic/silly yet!

  9. Chris says:

    Holy Shit. Asia is in the tank.

    Is there any possible way that tomorrow is not a repeat of today?

    I’m trying to figure out what to do when this is over. What’s a good way to go after the fall stops?

    I think we’re looking at several years of grind at whatever level we settle. Long hard years of high unemployment, high foreclosures, increasing poverty and crime. I see us going back to inner cities of the early 70′s. Gritty. Especially the midwest cities. They always seem to fall the farthest.

    I’m no finance guy. I understand about half of what’s posted here. It seems to me that eventually the dollar will be headed south in a major fashion after all this deleveraging happens. They are gonna HAVE to print more money for all this right? I’m thinking A LOT MORE. No??

    So what happens after that??
    Should I be buying pesos?
    Am I completely off track?

    Thanks much,
    Chris

  10. Winston Munn says:

    “One thing I don’t understand about gold: how does it perform when the whole world is crashing?”

    Gold is heavy to carry, hard to chew, and it tastes bad.

    Canned goods, butter, and bullets = real wealth.

  11. Chris says:

    How about investing in a little carryout place??

    Soup $1
    Bread $1
    Water $1

    I’ll call it the Wall Street Grill.

  12. samsin says:

    Chris,

    “Is there any possible way that tomorrow is not a repeat of today?”

    I hope tomorrow’s *opening* is a repeat of today’s +200 Dow opening. That way I can sell some of the long positions I took yesterday at a smaller loss!

  13. Eddie says:

    So… people still in the U.S. stock market lose roughly 1-3% of their money a DAY.

    A week ago gold was, what, 800, now it’s 900+, that’s 1-3% gained a DAY.

    Show me the logic that says stay away from gold and stay in the U.S. stock market…

    No end in sight for the corrections, and many people saying the world market is going to shit as well, where do people turn to?

    Sorry, I guess I’m just stating the obvious, but it’s the only thing I know.

    My prediction for DOW’s lowest drop?

    ~1100 in 2012

    Let’s see if I’m right…

  14. kingtone says:

    @ dmc:

    woah. did you just finish reading Cormac McCarthy’s ‘The Road’?

  15. Can you swap a defaulted credit card for bullets and butter?

  16. Eddie says:

    Good thing I don’t use bullets or butter…yet…

    On a strange side note, I spend $11 a day on rent…that’s as much as a good take-out meal…scary

    I plan on buying a scooter and cutting all spending besides rent, gasoline, water, electricity, groceries, and of course, internet :)

  17. Fred S. says:

    When was the last time the DOW was twice the cost of Gold? That is where we may be headed. Gold $2,500 Dow 5K around 2012.

  18. Michael says:

    Eddie, in the 1970′s gold and the Dow actually crossed. Meaning gold was higher than the actual index. Looking for the same again by 2020.