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Morning Gold Fix: June 8, 2010
Courtesy of www.fmxconnect.com
Gold gained overnight, rising to new records off heavy demand in Asian & European trading. August gold rose as high as $1254 before retracing to more modest levels.
Precious metals are finally becoming their own asset class at the banking level . Investment firms loathe to state it outright because they haven't completed their financialization efforts yet. There is just too much fragmentation on the demand side, and therefore for them gold as a product is not as profitable to pitch yet. I guess it's tough when some of the fish aren't in the barrel. But when Goldman Sachs worries that the US dollar is weaker than it appears, is bearish on the Euro, and doesn't come out preaching the virtues of the yen what is left to tell people to buy?
We are deflation bugs and have a hard time believing that inflation will be an issue before 2012. Following that reasoning gold shouldn't be up here, but there it is, staring us in the face on the highs this morning at 1250. So on to plan B, which was just the second half of Plan A. We are now considering moving the timeline up a little. Gold may be looking at the coming "race to the bottom" currency devaluation contest between the Euro and the Dollar.
Yesterday's activity was yet another day of closing on the highs despite the pullback of the other safe havens like US bonds. Today we have the follow-through of another 10 dollars. Perhaps this is in reaction to Merkel and Sarkozy breaking their date?
August gold was up 6.8 to $1247.6 per 100 troy ounces as of 8010 AM EDT, this morning. The June U.S. dollar index was down .078 to 88.39. July platinum was up .7 to $1518 per 50 troy ounces. Silver was up 16.3 cents to 18.33. For Market Prices Click Here
-Elizabeth Thawne
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gold is not an inflation hedge as this crass comment suggests
We are deflation bugs and have a hard time believing that inflation will be an issue before 2012. Following that reasoning gold shouldn't be up here, but there it is, staring us in the face on the highs this morning at 1250. So
its a hedge against loss of confidence in the system and disasters
you would have to be on Bernankes planet not to have lost all confidence in the system hence gold will go up
+1254
True, nothing magical, or mysterious. I think it is as simple as that. (Which in turn is pretty damn fascinating... accademically)
So would I be crazy to go all in 100% in the next down day ? 90% gold stocks, 10% bullion ?
Right on Yabs... Gold is an emphemeral thing ... it only reflects the lack of value in secondary objects/instruments. i.e. - Perfect for these conditions.
???
Thank you for the most profoundly idiotic statement I have EVER read in any comment here on ZeroHedge.
The 6000 year monetary history of gold is "ephemeral"? And I suppose fiat currency is therefore forever?
akak:
+$1250...and I could not agree more with your comment!
Gold could drop $300 today, in fact, I hope it does.
I would love to buy more at my entry (salvation) point.
Hey Elizabeth... Gold is less about inflation and more about distrust of government. Get a clue.
goats. yes goats, many a person's lives have been saved by a goat. buy Goats!
Just about as irrelevant, inane and meaningless as yesterday's post by the same individual. absolutely clueless
"We are deflation bugs and have a hard time believing that inflation will be an issue before 2012. Following that reasoning gold shouldn't be up here, but there it is, staring us in the face on the highs this morning at 1250." pure unadulterated idiocy
Anyone else tired of looking at Sinclair's dogs yet?
Me too.
So THIS is what gold posts look like with no trolls.
Kind of boring :(
Lets separate the men from the boys then.
Are you confident enough to go 100% gold yet ?
I am 110% gold and 450% silver!