Gold at new high while stocks and oil drop

[pscot]

http://www.marketwatch.com/story/gold-gains-on-weak-jobs-consumer-data-2010-06-17

By Claudia Assis , MarketWatch
SAN FRANCISCO (MarketWatch) -- Gold futures closed at a record high on Thursday, handily surpassing the mark reached just last week as investors grew more concerned about the U.S. economy and its proxy, the stock market.

Gold for August delivery, the most active contract, added $18.20, or 1.5%, to settle at $1,248.70 an ounce on the Comex division of the New York Mercantile Exchange. That left the June 8 record close of $1,245.60 in the rearview mirror.

The contract hit an intraday high of $1,252.50 on Thursday, CME said...

[MineralMan]

1. I think it's time to go hunt down my old HS class ring and go through the

jewelry box.

[Taverner]

2. I think the Orophiles will be going nuts soon (Beck, et al)

[CountAllVotes]

3. oh goody!

:D

:kick:

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[eridani]

5. That's because it's way easier to burn gold for energy than oil n/t

[Art_from_Ark]

6. Yup, just put a gold rod in a molten salt reactor

and watch the sparks fly

:rofl:

[pscot]

7. When my wife's mother-in-law was a child

she was sent to the market to buy a loaf of bread. On the way she lost the money. She was frightened because a million and a half marks seemed to her like such a lot of money. Just sayin'.

[eridani]

8. And if she had used gold, how would she have gotten change? n/t

[Art_from_Ark]

9. It is very likely she would have gotten change in silver

and/or gold.

Prices in post-war unbacked paper-- hyperinflationary
Prices in pre-war precious metals coins-- relatively stable.

Say she had paid with a 10-mark gold coin, she may have received 9 marks and 50 pfennig in the old silver coinage-- or maybe a gold 5 marks, and the remainder in silver.

Or, she could have sold the gold coin to a dealer to get the market rate for hyperinflated paper on that day. In that case, she may have had to spend it all at once, to get rid of it before the value fell.

[pscot]

10. It's about the forest not the trees

Say my mother-in-law had bought gold worth 1 mark in 1914. By 1920 her gold would have been worth 12 marks. A year later the value had risen to 36 marks. In January 1922 the same gold would have cost 2800 marks. In 1923 the price would have been a staggering 600 billion marks. I have no idea if that's where we're headed, but gold is going up and everything else seems to be headed the other way. A hedge seemed like a good idea a year ago, and it still does.