Gold prices hit record high... again

Dave Muscato · #1 01-31-2008, 11:15 AM

What is up with the dollar? Is anybody else as concerned as I am? The Fed cut the prime rate another 3/4 of a %... Ten years ago gold was ~$300/oz.

http://money.cnn.com/2008/01/31/mark...ex.htm?cnn=yes

santucci218 · #2 01-31-2008, 11:23 AM

i dont understand, if gold is worth more, wouldnt that make the country richer?

Dave Muscato · #3 01-31-2008, 11:36 AM

Only if we used gold as money. The US doesn't. We have a lot of Federal Reserve notes, though... that's the problem (the US went off the gold standard, which affixed the value of the dollar to the value of gold, in 1933).

Investors take their money out of real estate, stocks, etc and buy gold when they don't have much faith in the dollar. Rising gold prices are an indication that inflation is weakening the dollar and that the US economy is in trouble. Lowering the Fed discount rate can stimulate lending (i.e. stimulate consumer spending, which helps the economy), but this also causes inflation, if the money supply is growing at a faster rate than the GDP.

Flabby1 · #4 02-07-2008, 09:43 AM

Can i burn down the Federal Reserve?

*smb · #5 02-07-2008, 09:47 AM

Gordon Brown sells off the country's reserve of gold...gold prices hit record high.

MJ5150 · #6 02-07-2008, 09:57 AM

Well, I guess I'll buy some gold instead of real estate. Is this the same gold I can get at the jewelry store?

I predict SMASH or Joshua will show up soon and drop some knowledge on all of us about this developing situation.

-Mike

prsbass · #7 02-07-2008, 10:14 AM

About a year ago somebody I know sold his house and used the equity to buy gold. He said gold was going to go up by leeps and bounds. While I thought that was kind of weird because you can't live in gold, I also thought he might be on to something. Looks like he might have been.
Oh if only I had a time machine, I'd be living in a cardboard box full of gold.

iamlowsound · #8 02-07-2008, 11:52 AM

Looks like my prediction from about a year ago is coming true, $1000 an ounce.

lowsound

TeeMartin · #9 02-07-2008, 11:59 AM

Maybe Ron Paul is on to something with the gold standard lmao

James_B · #10 02-07-2008, 12:15 PM

Yes, good thing I bought all that "fools gold" a few years ago. Who's the fool now?

Brad Barker · #11 02-07-2008, 12:19 PM

Quote:

Originally Posted by James_B

Yes, good thing I bought all that "fools gold" a few years ago. Who's the fool now?

i'd actually take iron pyrite over the dollar right now.

Stanley Design · #12 02-07-2008, 12:58 PM

Pretty simple, dollar goes down so everyone wants to buy something of value they can physically hold, gold goes up in demand, so does their stock.

santucci218 · #13 02-07-2008, 01:06 PM

hmm...i should get a hold of some of the gold

iamlowsound · #14 02-07-2008, 01:09 PM

Quote:

Originally Posted by santucci218

hmm...i should get a hold of some of the gold

I have a 100lb chunk of it sitting in my back yard, you can buy some if you want. 1/2 price for TBers.

lowsound

GregC · #15 02-07-2008, 01:17 PM

Quote:

Originally Posted by MJ5150

Well, I guess I'll buy some gold instead of real estate. Is this the same gold I can get at the jewelry store?

I predict SMASH or Joshua will show up soon and drop some knowledge on all of us about this developing situation.

-Mike

Hey Mike, like any investment, it's generally better to buy before it's gone up, not after.

Hats off to those who got in at a good price. I'm not saying it's peaked (who knows?), but obviously it was a much better investment at $300 than $900+.