Gold Tops $700 per Ounce

segoja · May 9, 2006 2:35AM

Need I say more???

Where will it stop???

Longacre · May 9, 2006 2:36AM

I normally refuse to respond to gold-price threads, but I was looking at CNBC this morning and saw the price of gold. It's scary how high it has gone.

Coindexter · May 9, 2006 2:42AM

I'm a total philistene with regards to the whys and hows of gold price movement, but my gut tells me that these record prices all tie back to the U.S. political administration. I make no points for politics (being clear, I don't care what you think of Bush either way), but I feel that if we get some people in the White House in 2008 that the general public has more confidence in metal prices will come back down from the stratosphere. Until then, the sky's the limit.

Connecticoin · May 9, 2006 2:44AM

TheRaven · May 9, 2006 2:45AM

I think the metal market has less to do with the USA then it does international markets right now.....

RedTiger · May 9, 2006 3:13AM

<< I think the metal market has less to do with the USA then it does international markets right now..... >>

I agree. Most of the demand is outside of the U.S. Few people except the dedicated gold bugs seem interested even with this run. Even on this dedicated coin board, a recent poll showed what to me seems a relatively small percentage with more than $2000 worth of gold. If I talk to average folks and mention gold, their eyes usually glaze over, as if they have heard it all before (and they have

).

That said, I am amazed at the strength and keep wondering where and when it will correct. Probably when a couple of newbies announce they are in, and bought a bunch and put it on their 22% credit card because they are sure it will go up more than that. It often works that way...

ttown · May 9, 2006 3:15AM

I'd sure be buying your Platinum Proofs before the mint takes them off the web site since Platinum is aroun $1229 as we speak. It's just a matter of time they'll do to them what they did to the Gold proofs.

Coxe · May 9, 2006 4:04AM

So it made it up above $300 25-year inflation-adjusted or so. It has a way to go before we can really start thinking about taking out records. Fun to watch nonetheless.

Connecticoin · May 9, 2006 5:58AM

<< So it made it up above $300 25-year inflation-adjusted or so. It has a way to go before we can really start thinking about taking out records. Fun to watch nonetheless. >>

Well, even $850 in NOMINAL dollars would be remarkable, given Gold was in the high $200's not too long ago.

$850 in 1980 dollars -- bit of a stretch at this point. Kinda like wishing for Nasdaq 5000 again, in 2000 dollars.

Gemineye · May 9, 2006 6:08AM

At this rate Silver will follow and we will probobly see another melt in the near future.....!!!!!

Russ · May 9, 2006 6:11AM

What's really weird is that at the same time the Dow is flirting with a new record high.

Russ, NCNE

HonoluluDude · May 9, 2006 6:17AM

<< What's really weird is that at the same time the Dow is flirting with a new record high.
>>

Dow only going up in nominal terms vs. a falling dollar and rising gold...

Russ · May 9, 2006 6:21AM

<< Dow only going up in nominal terms >>

Tell that to anybody who's still holding gold purchased in the spring of 1980. Those who bought the Dow or the S&P at the same time have done far better. Gold has a long, long way to go to prove out as anything more than a speculative short-term play. In the long term, it's been a loser.

Russ, NCNE

Vetter · May 9, 2006 6:26AM

<< Need I say more???

Where will it stop??? >>

Don't know when it will stop, but it's been a nice run!

HonoluluDude · May 9, 2006 6:28AM

<< 

<< Dow only going up in nominal terms >>

Tell that to anybody who's still holding gold purchased in the spring of 1980. Those who bought the Dow or the S&P at the same time have done far better. Gold has a long, long way to go to prove out as anything more than a speculative short-term play. In the long term, it's been a loser.

Russ, NCNE >>

Who's holding gold since 1980? Not me.

It's like real estate or any other investment-- buy low, sell high.
Long term buy and hold is for suckers.

JDelage · May 9, 2006 6:37AM

<< What's really weird is that at the same time the Dow is flirting with a new record high. >>

I agree. Weird...

eagle7 · May 9, 2006 6:40AM

Gold's low was made in May of 2002 about 249 or so. I remember it well. I was watching cnbc along about that time every day. Some high powered analyst, a very nice lady, I cant remember how to spell her name now, Maria Rameriz or something like that was being asked about the price of gold in addition to her stock picks. She replied that it would be 150 or less by year end 2002. By year end 2002 it was over 300 and climbing. So much for the pundits. Since then many people on these boards have fought it tooth and nail all the way to its current level of 700. Its not wise to fight a rising market. No matter what market it is. JMHO.

kalch23 · May 9, 2006 7:01AM

It's only going to get crazier.

CoinHusker · May 9, 2006 7:40AM

James, I traded 2 - 1 oz bullion gold eagles for a PCGS MS66 74-P Ike back on January 27, when gold was $559/oz. After today, I'm trying to figure out who got the better deal.

MrKelso · May 9, 2006 7:46AM

Gold Could see $1000 or better in the long haul. Hang onto your Hats.

roadrunner · May 9, 2006 7:50AM

All those who have bought gold and doubled their money or more in the past 3-5 years are probably "very unhappy" on gold's
performance since 1980. Boy what a stinker.

What's really weird is that at the same time the Dow is flirting with a new record high.

Yes, but the Dow/Gold chart has been heading straight down since 2001. Right in the dumper. Eventually we will be looking
at 1:1 Dow/Gold or something close. Whether it's 3000 Dow vs $3000 gold or 1500 Dow vs. $1500 gold....it's coming. I
personally feel a 3:1 Dow/gold ratio will be plenty low enough considering it started up around 42:1.

That inflation adjusted DOW high needs a 30% correction DOWN for the US Dollar: 11,500 Dow = 8000 inflation adjusted.

We are not even close to a blow off in gold. This is still the accumulation phase of the run. The common guy is still gonna
be coming in, but not before it hits >$1000 and the CNBCers are touting it heavily.

roadrunner

CoinHusker · May 9, 2006 7:53AM

<< What's really weird is that at the same time the Dow is flirting with a new record high.

Russ, NCNE >>

Gold hasn't been running counter-cyclical for a while, has it??

rgl1345 · May 9, 2006 8:03AM

RR, the 3rd Angel is getting ready to sing

roadrunner · May 9, 2006 8:15AM

Singing in the rain with Angel $850. Kinda hard to believe that gold jumped $100 in less than 3 weeks after breaking $600.
There is a lot of pent of strength at even these levels. I'm not a strong buyer of anything but generic Liberty gold at these
levels, but I'm not selling my Saints either.

roadrunner

cladking · May 9, 2006 10:04AM

It won't be long until the inflation numbers turn upward and there is a massive flight to gold.

You'll need to get out before the inflation numbers turn downward again but that will be years away.

wayneme · May 9, 2006 10:04AM

I'm sitting here watching gold and the stock market and the winners are major player as they lose on the usa market they win world wide so my thinking it's a wash
we in the usa lose they just play the market
the only thing i can see at this point the world is becoming bigger and the usa smaller do they care
NOPE

trozau · May 9, 2006 11:35AM

Damn barbarous relic!

roadrunner · May 9, 2006 12:58PM

Inflation has been up for several years only the hallowed CPI index wasn't showing it. What do you expect from a massaged black box system designed to spit out "happy" data. If one used the old CPI index before Clinton and his followers massaged it, the CPI rate would be several % higher than published...and GDP lower than published. Now that's "flation.

roadrunner

northcoin · May 9, 2006 2:45PM

So Laura says sell at 800. Some here say hold until it hits 1000. 900 would be hedging one's bets. This kind of sell point makes sense for bullion or lower graded Saints and Libs, but it may take longer for higher grade "investment coins" to catch up. In other words there seems to be a lag time before a $3000 Saint purchased for that back when gold was $350 doubles to $6,000 even if Bullion has already doubled. The professional advice given back when bullion was $350 was that it was better to buy higher graded Saints. If that conventional wisdom is to prove correct it will take some time. As of now though those who just bought Bullion are the only ones seeing their 'investments" having doubled. Is this the experience of others here too? Do others agree with these premises?

northcoin · May 9, 2006 4:15PM

ttt

Elcontador · May 9, 2006 5:56PM

Please keep speculating in gold. The more the merrier. While the spillover effect on the coin market has kept me away from it, I've never made so much money in the stock market as I have since gold has taken off. Made
2 1/2% at the market close on a security I bought today. And no, I haven't bought any precious metals (or stock in their companies) in months, and I certainly don't plan on changing that.

Legend · May 9, 2006 9:05PM

Laura says start to look around and think of selling when it hits $800.00. Get rid of your excess at that point.

If it hits $800.00 it will probably run to $1,000.00 (especially if the nut from Iran keeps writing love letters). However, I clearly remember the dead stop in 1980. It happens overnight and the next day you can't sell anything.

It will be impossible to hit the peak, but you sure don't want to be standing when the chairs stop.

Right now the gold bugs are in heaven.

JoesMaName · May 9, 2006 10:13PM

<< 

<< Dow only going up in nominal terms >>

Tell that to anybody who's still holding gold purchased in the spring of 1980. Those who bought the Dow or the S&P at the same time have done far better. Gold has a long, long way to go to prove out as anything more than a speculative short-term play. In the long term, it's been a loser.

Russ, NCNE >>

That depends on how long a term you're talking about.
Yes people got suckered in the 80's but just because someone cried wolf then doesn't mean you should ignore the ones in your living room today, it's a different world, different issues - And... 2.5 billion Indians and Chinese can't be wrong!

WACoinGuy · May 10, 2006 12:17AM

It's interesting to see how many of my better date and/or higher grade gold coins that I've bought now have a higher melt value than their purchase price. A few of my MS-64 Saints fall in this category, and if gold hits $800, several more of my coins will have a higher melt value than purchase price.

On the flip side, gold's going to have to top $40,000 an ounce before my 1849-D gold dollar has a higher melt value than what I paid for it. If that happens, maybe I should take it to the smelter.

topstuf · May 10, 2006 1:02AM

In 1980 the US still made stuff. Since then we have concentrated on firing everyone and sending all our money to China and India.

But we have better "civil rights" now.

We have pursued "equality" for the past 50 years.
Everyone else (well not England) has pursued "superiority."

Go figger. Just no justice is dere?

Frankcoins · May 10, 2006 1:43AM

Found that in an archive of my old web page...

Jcarney · May 10, 2006 1:59AM

Might be time to press "reload" Frank.

roadrunner · May 10, 2006 2:49AM

There was time to unload gold in 1980 even if you missed the quick spike from $600-850...most everyone did.
It rebounded to over $600 again a short time later and that would have been the final "clue" to get out. Again,
most didn't.

Bullion are the only ones seeing their 'investments" having doubled

Completely untrue. Saints in 64 have effectively doubled in price as well
as gold went from $300 to $600 ($450 to $900). A number of the popular
generic gold coins have tripled or nearly so ($5 Indians and $10 Indians
in various grades). Even 65 saints have gone from $675 since gold bottomed
out to about $1700 today. On a number of the moves leading up to $600
you could have easily made 20-30% when gold moved 10%. However that
premium has been shrinking as gold has climbed higher and higher.
I would still agree with Travers in that MS65 Saints in particular at one
point will be heavily promoted and do much better than the POG. And other
$20's will probably follow in the coattails.

roadrunner

JDelage · May 10, 2006 3:08AM

When was gold last at this level (inflation adjusted)? 25 years? More?

thebestMAX · May 10, 2006 6:01AM

Every time it goes up $100/Oz, I buy another Oz. I am reverse dollar cost averaging.

shirohniichan · May 10, 2006 6:27AM

<< Every time it goes up $100/Oz, I buy another Oz. I am reverse dollar cost averaging. >>

So do you have 4 or 5 ounces now? I don't have much, but I'm tempted to sell a few bullion coins.

ricko · May 10, 2006 6:46AM

Last week the Mint had Gold Eagles for sale... this week they say 'Product not Available'. When called via telephone, they say the coins have been "flying off the shelf - we have no more." In an earlier post (this thread) someone indicated they thought or knew the mint may 'pull' the platinum - Is this plausible? Is there any thought they may have done this to proof gold? Does not sound reasonable - but then, reason does not always apply. Anyone have an answer? Cheers, RickO

BigTom · May 10, 2006 7:45AM

Rick,

Was that for the bullion eagles or the proof gold? I thought they shut the proof gold production down many weeks ago.

CoinMaster1229 · May 10, 2006 8:07AM

How about that Governor from Florida!!!!

ricko · May 10, 2006 8:11AM

BigTom, That was for the Proof gold....... as I said.. it was available recently, but this week... all types ar 'not available'.. Cheers, RickO

Gold Tops $700 per Ounce

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