Business

New Record: Gold Nears $1,900 an Ounce

Gold Price Nears $1,900 an Ounce

CNBC

What‘s one of the year’s “best-performing” assets? If you guessed gold, you’re right.

The precious medal rose again in worldwide trading on Monday morning, hitting prices that are flirting with $1,900 an ounce.

“Gold prices rallied towards $1,900 an ounce on Monday as concerns over the global economic outlook fuelled interest in the precious metal as a haven from risk and due to talk that weak U.S. growth could spark a further round of monetary easing,” CNBC reports.

“Spot gold rose as high as $1,894.10 an ounce and was up 1.1 percent at $1,878.59 an ounce, building on its strongest one-week rise since February 2009 last week.”

That’s a new record, says Yahoo! Finance.

CNBC called gold one the year’s “best-performing” assets considering it has risen 33 percent.

Why the increase? There’s rampant speculation that the Fed could intervene in the markets with more stimulus measures. Those measures could easily inflate the money supply, making gold a safe haven.

“There has been a heavy round of speculation that the Fed could be pushed (into another round of) quantitative easing sooner than thought, as there haven’t been any signals of a possible economic recovery,” Pradeep Unni, senior analyst at Richcomm Global Services in Dubai, told CNBC.

Meanwhile, Business Insider reports oil has been flat as speculation grows thatproduction could increase amid a falling Gadhafi regime in Libya.

Comments (96)

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  • simply one voice
    Posted on August 22, 2011 at 2:06pm

    The good ol’days are completely shutting dow, Wake Up Americans. Food, water, clothing, medicines, fuel, i.e., everything you think is expensive right now will be viewed as dirt cheep by next year and not having cleaning products and toilet paper, even. might drive you to insane acts if you don’t act now.

    Truly, gold and silver are the only investments to have. Remember though, not even they will help you if the price for a loaf of bread goes ballistic and no one cant eat, ultimately, precious metals.

    Reflect on this considerably, please.

    Report Post » simply one voice  
    • simply one voice
      Posted on August 22, 2011 at 2:10pm

      I ment doen and, can instead of can’t. Sorry for the typos on a very emotional subject.

      Report Post » simply one voice  
    • metalurgy
      Posted on August 22, 2011 at 8:26pm

      Shutting “DOW”.

      I‘m thinkin’ you actually got it right. Listen to your subconcious friend!

      Report Post » metalurgy  
  • insaneserenity
    Posted on August 22, 2011 at 1:29pm

    gold is a precious “medal”? That’s interesting, I always thought it was a metal.

    Report Post »  
  • Lotus503
    Posted on August 22, 2011 at 12:51pm

    A little advice…buy silver. It’s the next to launch.

    Franklin Sanders commentary for last Friday…

    http://silver-and-gold-prices.goldprice.org/2011/08/this-week-gold-price-told-us-very.html

    Report Post »  
  • aesaac
    Posted on August 22, 2011 at 11:53am

    the dollar is backed by interest rates, when the interest rate is 10%-20% gold will be $750

    Report Post »  
    • raiderglenn
      Posted on August 22, 2011 at 1:50pm

      Here is some simple math for you… if you take the amount of actual gold and actual dollars from 5 years ago and make that your base point for the value of gold, then take the amount of dollars in circulation today you would have gold at $5000 an ounce.

      Its not so much gold becoming more valuable, its the dollar becoming worthless.

      Now, what do you think happens when the rest of the world stops using the dollar as the primary currency for buying and selling oil on the world market?
      Again this is simple stuff, less demand gives you less value… hence gold goes up even more…

      The crushing inflation (see deflation of the dollar) of the 70′s sent gold from $90/ounce to $900/ounce in 1980…

      The dollar is not coming back this time; gold could hit $10,000/ounce in the next 10 years…

      And BTW silver has a historic ratio of about 15:1 with gold. So that silver that’s selling for $40/ounce right now should be at about $120/ounce to get back to its ratio…

      If you have a LOT of money sitting in the bank, buy gold! If you only have a little bit, buy silver!

      Split your cash: gold assets at 50:50 and you are safe whichever way it goes, up or down…

      raiderglenn  
    • progressiveslayer
      Posted on August 23, 2011 at 8:32am

      @ raiderglenn correct on all points,I’m in gold and silver also gold mining companies stock.I believe the dollar will lose it’s reserve currency status in the near future,what do you think?

      Report Post » progressiveslayer  
    • rox
      Posted on August 24, 2011 at 10:24am

      I have invested in silver and gold. My gold has almost paid for itself and my silver HAS paid for itself. I bought in early. I think gold will go over $2000..

      Report Post » rox  
  • HereticWilson
    Posted on August 22, 2011 at 11:53am

    I can not IMAGINE buying gold right now. Sure, it may go up some crazy amount like 500 more dollars, but this bubble IS gonna burst eventually.

    Report Post »  
    • Lotus503
      Posted on August 22, 2011 at 1:00pm

      It isn’t a bubble. Individuals, companies and countries are turning away from fiat currencies because they are backed by nothing.

      Also, our dollar is being deflated because of the quantitative easing…printing of money. The more dollars there are in circulation, the more of them it takes to purchase an ounce of gold or silver. The purchasing power of gold remains constant because there is a finite quantity of gold, but the purchasing power of the dollar drops because they can be produced in any quantity at the will of the government…QE1, QE2, QE3…etc.

      Report Post »  
    • chevy65
      Posted on August 22, 2011 at 5:57pm

      I agree with you , to a point. Gold will continue up while the Dow is still this high. When the Dow drops to around 5000, gold will be at 3500-4000 . [this is all my opinion, of course] people will start to need to cash in some of that gold they purchased to pay for things that have gotten much more expensive because of inflation. Too many people that start to sell it will cause it to start a fast decline.

      Report Post »  
    • BloodSweatandTears
      Posted on August 23, 2011 at 3:27am

      iI’s easy to get lost in the debate. learn to “follow,” the fed’s moves….no one is pushing them to “ease,” they are…so they can be the first ones to spend the new money. More inflation means cheaper re payment of loans. as long as they are pilling in more money to the pool the more the value is diluted. Watch Paulsen, 1/3 of his billion dollar portfolio is in GLD. the ETF… It’s Keynesian economics which any sensible person rejects. Think Pelosi when she said “you can spend yourself to prosperity…“ ”Or welfare checks create jobs..”They are following a plan that doesn’t work. I wish gold wasn’t going up. it would mean we are going back to normal….But while it‘s going crazy you don’t have a lot of options. P.S. the fed/cronies are buying up farmland now. So there’s the next “bubble,” in the form of higher commodity prices.. If I could, I would buy farmland and not let go, except that last executive order last month is another broad reg. affecting farmers. Protect your farmers, they are the next to get the shaft…just like the housing meltdown.

      Report Post »  
  • thegodfather
    Posted on August 22, 2011 at 11:37am

    How is that Anthony Wiener investigation going, where he blamed Glenn for manipulating the price of gold?

    Report Post » thegodfather  
  • ENCNIOM
    Posted on August 22, 2011 at 11:36am

    Wow, gold has skyrocked from 700 per ounce to almost 1900 per ounce. You Beckerheads that blew all your money on gold because your god Glenn Beck told you to buy must all be really pissed at all the money you lost. Beck should be arrested for the peoples lives he ruined by pushing gold on his shows. Goldline is nothing more than an arm of Glenn Becks company. Its is soo corrupt and stealing ordinary peoples money that the BBB has them rated as an A+. Goldline should be investigated by Anthony Weiner and a special prosecutor assigned by President Obama for fraud on the American People and their connection to Glenn Beck. This company is sooo bad that they even infiltrated the History Channel and are running their advertisements as I write.

    Pass the Cheesy-Poofs, Oprah is on….

    Report Post » ENCNIOM  
    • ProbIemSoIver
      Posted on August 22, 2011 at 12:20pm

      lol. Keep up the great work !!! I love poetic justice.
      Where is old encinom ? I really think she gave up, or converted to Conservatism.

      Report Post » ProbIemSoIver  
  • aesaac
    Posted on August 22, 2011 at 11:24am

    when the fed raises interest rates, that is when gold is sold offf – the dollar is backed by force of arms, not by gold.

    Report Post »  
  • ColoradoMaverick
    Posted on August 22, 2011 at 10:46am

    Weiner, are you paying attention now? Put the camera down (nobody wants to see you naked anyway) and pay attention. Glenn Beck was right and you are an idiot!

    Report Post » ColoradoMaverick  
  • aesaac
    Posted on August 22, 2011 at 10:43am

    who the hell do you think is going to buy your gold when you and everyone else goes to selll it at 1800-2000
    no one, try to sell at the market price, who is going to buy it when everyone starts to sell it, its only value is percevied value– it costs 500 to mine it, so that is the value of it–no one is obliged to give you anything for it, the value of gold is what you can sell it for–try to sell it when everyone is trying to sell it realizing that it is tullip syndrom – once the rout begins good luck-

    Report Post »  
    • greensteam
      Posted on August 22, 2011 at 10:58am

      you do realize they are setting the value at what gold is selling for right? drrr.

      Report Post »  
    • Uncurable wound
      Posted on August 22, 2011 at 11:04am

      Who will but it?Anyone with worthless fiat.The banks of china and Mexico and numerous others are buying gold and silver like crazy.China alone has increased their silver holdings this year by 3000%.They are doing this while the metals are at all time highs…Why would they do this,just to lose money.Gold and silver are money,Gods money-all fiat is just more turning from God.We have replaced Gods money with a lie, that is based on lies of men.
      Now we try to replace God with man-the Creator or the created?

      Report Post »  
    • bane73
      Posted on August 22, 2011 at 11:05am

      Are you sure about that???

      There’s a heck of a lot more people buying gold in China and India than here in America; and they buy largely for social-reasons (weddings) and long-term (savings); they aren’t buying it for short-term investing or economic-hedges.

      So, when America’s economy finally gets fixed (hopefully!) and Americans are clamoring to sell their gold, sure there will be a dip… but to $500??? Pretty doubtful. All of those asians will still be buying in large quantities for the same reasons they always have.

      You are speaking of a bubble.
      But how is gold a bubble? Are you basing that entirely off of price???
      That’s a pretty bad measure it would seem.
      A better measure would be it’s actual worth as compared against the dollar — and combine that with it’s level of popularity:
      a) as for popularity, it’s certainly no bubble. In recent bubbles even people that could barely afford rent were figuring out ways to get into real estate or buy tech stocks; where are they with respect to gold??? Oh, that’s right… selling what little they have to the chop-shops.
      b) as for worth; well, do you own research but mine shows that gold is not actually going up, but rather the dollar is going down and gold is holding steady with some slight growth. This suggests that your $500-gold is *actually* worth a whole lot closer to the current rate; that is, unless you can prove that, in *current* numbers it still costs only $500/ounce to mine and refine.

      Report Post »  
    • aesaac
      Posted on August 22, 2011 at 11:22am

      when the fed begins to increase interest on the dollar that is the time when gold begins to be sold off,

      Report Post »  
    • Vunks
      Posted on August 22, 2011 at 12:53pm

      When the feds raise interest rates the toxic assests on their books and banks books will implode

      Report Post »  
    • Liberalismsamentaldisorder
      Posted on August 22, 2011 at 6:32pm

      the feds will not be raising rates soon, the dollar is teetering, most other currencies will be affected as well. the rush to “real” assets will not diminish in the near future.

      Report Post »  
  • roadhog
    Posted on August 22, 2011 at 10:40am

    Gold is the New world Currency. Nobidy Trust Obama and his Clowns

    Report Post »  
  • progressiveslayer
    Posted on August 22, 2011 at 10:05am

    http://www.mineweb.com/mineweb/view/mineweb/en/page103855?oid=133848&sn=Detail&pid=102055

    Report Post » progressiveslayer  
  • bane73
    Posted on August 22, 2011 at 9:59am

    For those of you asking about and challenging the worth of gold…

    For those of you suggesting that food/water/guns/ammo is where you should plow all of your money, and that there is no logical reason to plow any into gold…

    For those who argue “you can’t eat gold”…

    You are missing the point.

    The point is, you can’t actually predict the future; like all Beckers, I strongly worry society might totally fall off the rails… but it’s entirely possible (and maybe more likely) that society won’t fall off the rails, it might simply grind to just shy of stopped… barely creeping along.

    Gold has served as a store-of-wealth for thousands of years; there is no reason to suspect it’s any different today.

    After you have a year of food and some water and some guns and a few thousand rounds, and you still have $40K left, what do you do with it? Well, if you are certain society will fall apart, you buy more ammo. But if you aren’t certain, you’re crazy to leave it all in cash because if society grinds to a halt, you’ll lose most of your wealth; storing it in gold will help you retain your wealth through the ugly times until we rebuild and get things going again.

    Buying gold is not to substitute for food in case of the end of the world type scenario.

    Buying gold is to store your wealth until proper laws are put into place to rebuild a sound economy.

    It’s the application of the old lesson: *DIVERSIFY*.
    Because no one actually knows where this train

    Report Post »  
    • bane73
      Posted on August 22, 2011 at 10:01am

      … because nobody actually knows where this train ends. (sorry, Blaze cut my post off short)

      Report Post »  
  • turkey13
    Posted on August 22, 2011 at 9:05am

    Beck should be arrested after telling folks to buy gold 2 years ago for $900.00, If those people had waited untill now they could get it for $1900.00. That first round of buyers will take a big hit on capital gains tax.

    Report Post »  
    • SamIamTwo
      Posted on August 22, 2011 at 9:57am

      It was 700 bucks when I heard GB talk about it…but I bought my stash at 250 bucks…WoW.

      Report Post » SamIamTwo  
  • Snowleopard {gallery of cat folks}
    Posted on August 22, 2011 at 9:00am

    Question for all to consider:

    How long until the Fed’s start grabbing and repossessing everyones gold? Save for those of course who are working with the administration…like the universities and unions….

    Report Post » Snowleopard {gallery of cat folks}  
    • Conkuur
      Posted on August 22, 2011 at 9:07am

      Not long, they just took Libya’s gold I guess to pay off Al Queda as well.

      Report Post » Conkuur  
    • progressiveslayer
      Posted on August 22, 2011 at 9:08am

      The nightmare scenario would be Barry reelected and there’s a 100% chance gold will be confiscated just as Barrys hero FDR did.

      Report Post » progressiveslayer  
    • Uncurable wound
      Posted on August 22, 2011 at 11:12am

      Snow I think they will try,but I dont think it will go real well.
      The anger that is building out there is SUREAL!
      This aint the USA of the thirties!they may try to steal the peoples gold,but this time the people will give them led instead.
      WE WILL NOT COME TO BOW,WE WILL COME TO CONQUER!

      Report Post »  
  • Secessionista
    Posted on August 22, 2011 at 8:38am

    If the tea party has its way and asset-backed sound money policy is implemented in the USA, gold will easily hit 20 or 30 THOUSAND dollars per troy ounce.

    Report Post » Secessionista  
    • SamIamTwo
      Posted on August 22, 2011 at 10:08am

      That does not sound right…you make it sound like the TEA party wants the government to fail and that they would cash in on it with gold…I don’t think they want that.

      Let’s go to Ft Knox and count the bars of gold, eh?

      Report Post » SamIamTwo  
    • OneFunR6
      Posted on August 24, 2011 at 10:26am

      $50,000.00 OR MORE.

      Sorry, SamIamTwo, NO [more] gold in Fort Knox…..

      Report Post » OneFunR6  
  • OLDBIKEFIXER
    Posted on August 22, 2011 at 8:23am

    This is crazy. I remember back in the ‘70’s when gold hit $400 and everyone was freaking out. Yeah, $400 an ounce. Must be nice!

    What I can’t understand is WHY gold is valuable in the first place… you can’t really make anything with it except for jewelery, you can’t eat it, and it can’t be used as fuel for anything. Except for a few little known industrial uses (like tinting the glass in office buildings), it’s basically just used for decorating purposes.

    Yet, people are willing to pay (as of 8 am. today) almost TWO THOUSAND DOLLARS an ounce for it?!? Does anyone really need earrings that bad?

    The willingness of someone to pay the equivalent of the average American’s monthly wages for something that has no real purpose just baffles me.

    Lets say that the economy collapses (worse than it already has) and there is no food, no fuel, and not really much of anything else, either. What are you gonna do — eat that ounce of gold that you bought?

    Forget gold! This is a great time to invest in canned goods and ammunition!

    Report Post » OLDBIKEFIXER  
    • Rice Water
      Posted on August 22, 2011 at 8:39am

      Got a lotta questions, dontcha, son? We don’t like questions ’round these parts…

      Report Post » Rice Water  
    • raderby
      Posted on August 22, 2011 at 8:49am

      actually, gold is used extensively in electronics. Like platinum, there is a very small amount on Earth. You might just as well ask why silver is priced so low. BUT, I agree. In hard times, water, food, shelter, protection are all the useful items to sustain life. Remember the “3” rule: 3 minutes, 3 days, 3 weeks. In survival thinking, ever consider air? What if? We are in God’s hands.

      Report Post » raderby  
    • jhaydeng
      Posted on August 22, 2011 at 8:50am

      Fixer, I agree! The value goes way back to B.C. and earlier. It‘s value is based on rarity from what I understand and that’s how it got it’s monetary value. Different cultures put different values on it as far as what it could get you for the amount you had. I agree it’s nuts, but this is how the world goes round I guess!

      Report Post »  
    • jedidiah
      Posted on August 22, 2011 at 8:58am

      Gold is a representation of value. It is valuable as such because . . . . .

      It is of finite quantity and cannot be created or synthesized.

      Gold does not oxidize (rust) or react with other compounds. It is inert.

      While gold is rare, it is not too rare. There is enough available to make it practical to use for money.

      A piece of gold can easily be divided into smaller pieces and smaller pieces can easily be combined into a larger piece.

      All gold is equal. One gold bar is worth the same amount as any other gold bar of the same weight, while one half-carat diamond may be worth much more than another half-carat diamond due to difference in cut, clarity, etc.

      Gold is easy to handle and store.

      It certainly does not hurt that gold is shiny and attractive to the human eye.

      Can’t remember where i got this, but HT to them is spirit.

      Report Post » jedidiah  
    • Exposethetruth
      Posted on August 22, 2011 at 9:14am

      @OldBikeFixer
      I am with you. I think food and water is the way to go….it can also be used for barter if you need something else.

      Report Post » Exposethetruth  
    • SamIamTwo
      Posted on August 22, 2011 at 10:03am

      When we went off the gold standard you had to get into a cartel to buy 1M dollars of gold. We did at our office, but I refused it at 38 bucks and ounce and kick myself daily. lol

      It was under Nixon that we went off the gold standard…

      The problem with it going up is that it is an indicator of some serious crap coming down the road…so some hope it goes up, does that mean they hope for bad times? Yeah thank about it…I like it but fear it myself.

      Report Post » SamIamTwo  
    • greensteam
      Posted on August 22, 2011 at 11:09am

      canned goods contain chemicals oldbikefixer. the inside of the can is lined with a plastic chemical that is harmful over time. if you insist on abandoning gold you buy freeze dried food not canned. gold is used in wires and electronics as well as currency. some pellet gun ammo is gold plated to resist friction and allow more speed. occasionally you might be able to find ammo for firearms plated in gold. it is not plated in enough to melt and sell, so this drives up demand without the payoff of anyone being able to cash in. so dont buy gold plated ammo thinking you can make money. there are gold coax cables and speaker wires. silver is used in some spark plugs to allow more conductivity. silver and gold conduct very well and do not corrode or rust. gold will always be valuable for one reason or another. it has alot of uses. outside of jewlrey.

      Report Post »  
  • marhee9
    Posted on August 22, 2011 at 8:20am

    Where is Anthony Weiner now? Oh that’s right, he turned out to be a pervert.
    http://www.youtube.com/watch?v=XnX8Z713U0M

    Report Post »  
  • mwhaley
    Posted on August 22, 2011 at 7:59am

    “the Fed could be pushed (into another round of) quantitative easing sooner than thought,” How? The printing presses going a full speed now. China is not going to sink another dime into this stupidity unless we give up something (land or resources)

    Report Post »  
    • Ex_Masshole
      Posted on August 22, 2011 at 10:16am

      @ MWhaley ” China is not going to sink another dime into this stupidity unless we give up something (land or resources)”

      I suggest we give them California in exchange for absolving all of our existing debt. Assimilation should be pretty easy for both sides of that deal.

      Report Post » Ex_Masshole  
    • ProbIemSoIver
      Posted on August 22, 2011 at 12:35pm

      How about we give china nothing for the debt caused by the criminal global elite that control our politicians ? If anything give them Alaska. California is some of the most unique and diverse territories in America. I would rather round up all the radical liberals and socialists and send them to the middle of the country. Real Americans should be able to enjoy California. Don’t throw the baby out with the bathwater!

      Report Post » ProbIemSoIver  
    • ProbIemSoIver
      Posted on August 22, 2011 at 12:41pm

      Our immediate debt to china is about 1.2 trillion. How about we pull out of Afganistan. We should be able to pay 1.2 trillion in about 2-3 years. What say you ? Give up California to finance another couple of years in a senseless WAR ? Bad decision !!!!!

      Report Post » ProbIemSoIver  
  • Rice Water
    Posted on August 22, 2011 at 7:58am

    Thank heavens that Richcomm Global Services is still willing to trade my worthless dollars for their precious gold!

    Report Post » Rice Water  
  • Stoic one
    Posted on August 22, 2011 at 7:56am

    Well it is now 7:55 am and the spot price was quoted at $1925 and change on the east coast……

    Report Post » Stoic one  
  • alina.bolero
    Posted on August 22, 2011 at 7:53am

    Whoa! I’m sure if we just print more money and get more people on unemployment and food stamps we can fix that!

    Report Post » alina.bolero  
  • trolltrainer
    Posted on August 22, 2011 at 7:52am

    Wow, Glenn Beck was right!!! What a prophet!

    Report Post »  
    • SamIamTwo
      Posted on August 22, 2011 at 10:06am

      pfft not prophet…any fool could look at a 5 year trend in the 80′s and see that gold was a good investment.

      Report Post » SamIamTwo  
  • chazman
    Posted on August 22, 2011 at 7:51am

    gawd …

    Report Post »  
  • liberalsarealiens
    Posted on August 22, 2011 at 7:50am

    Beck was right here! Hey Wiener, Hows your gold investment? LMAO

    Report Post » liberalsarealiens  
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