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Gold matching record high

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By Peter Boockvar - September 7th, 2010, 9:53AM

Using the generic futures contract on Bloomberg, gold is rallying to match its all time record high at $1,257ish. With very little industrial use and with zero yield, the only reason to own gold is for jewelry and as a currency and over the past few years, the investor demand for another currency outside of the US$, Euro, etc… has of course predominated. The record high in gold is a direct indictment of the Fed’s monetary policy in terms of its dollar debasement and also fears that the ECB will be forced to get further into the money printing game if European sovereign issues become more troublesome from here. People don’t own gold because they want to, they own it because they feel they have to. It’s called self defense.

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Category: Gold & Precious Metals, MacroNotes, Think Tank.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Gold matching record high”

  1. takloo Says:
    September 7th, 2010 at 11:05 am

    Gold is close to all-time high in US Dollar currency but not close in other currencies as reflected by the Kitco gold index… which reinforces gold’s place a safe haven without any fundamental attribution

    http://takloo.wordpress.com/2010/09/06/gold-close-to-new-all-time-highs-in-us-dollar-terms-but/

  2. franklin411 Says:
    September 7th, 2010 at 12:13 pm

    Millions of Americans also felt that Father Coughlin’s allegations that the world economy was controlled by the International Banking Conspiracy were absolutely correct.

    Just because a mob thinks something is true doesn’t make it so.

  3. How the Common Man Sees It Says:
    September 7th, 2010 at 1:50 pm

    With September considered the ‘golden month’ it looks like $1300, for the new US$ record, is achievable. Where we go from there into the new year is anybody’s guess

  4. MikeBC Says:
    September 7th, 2010 at 1:52 pm

    Sometimes the mob thinking something is true makes it so, as in the case of the use of gold as a means of storing value. There is nothing inherent in gold (or, for that matter, linen paper) that makes it a store of value but if everyone treats it as such, it is.

    What matters to me is that it seems a lot of the people with guns believe in it, which means it can certainly come in handy if and when the civil order collapses and one has to negotiate for calories or safe passage, as Soros’s father did with his gold when he arranged for his son to escape Nazi-occupied Hungary.

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