Gold tops $1800 per ounce

[753C]

So, Gold briefly topped $1800 an ounce tonight and is now worth more than platinum.
This might not be interesting to anybody else here. I buy and sell physical gold regularly and this latest run up has been nothing short of amazing.
If Marvin Gaye were here with us he would probably ask "What's Goin on?"

The stock market woes and the gold run up have the doomsday crowd foaming at the mouth.
What think ye? Is this the beginning of something bad or just the markets being their normal volatile selves?

 

[sparkchaser]

Gold more than platinum? That's insanity right there.

 

[753C]

I know, right?!
Doesn't make sense given the comparative rarity and the similar volume of industrial usages for both metals.
I guess there is just something about gold.

 

[Will]

I've been following the commodities markets in metals closely the last two years, and nothing surprising there. We're borderline global economic collapse, and if that doesn't happen, most economies will hyperinflate due to ridiculous policies of QE which result in joe public being xx% poorer each year.

Gold is so familiar to everyone, and it's more about the psychological values of it than anything. It can't be printed by governments as a solution to budget problems - it can be seized however, and this has happened in the past.

It's not about practicality, but more about survival. Those gold coins haven't lost 15-20% of value that people's savings have lost just sitting in the bank. Alot of people don't realise how much their savings have decreased by due to quantitative easing and other measures.

 

[753C]

So true Will, especially the psychological part...
So then yesterday I read that Bank of NY Melon is actually going to start charging depositors (high dollar) to store there money in the bank. Yikes! What is the world coming to?
It looks like there was a small correction since I posted this, but still with all of the civil and political unrest in the world, coupled with the awful financial happenings in the US and EU, gold is still going to be a solid bet even at these prices. Three years ago if someone had said $2000 an ounce gold most people would have looked at them and rolled their eyes, but it might be coming....

 

[Zolipara]

Gold has been hyped up beyond belief for a while now. Its a bubble waiting to burst. I'd be careful buying it atm.

 

[753C]

Gold has been hyped up beyond belief for a while now. Its a bubble waiting to burst. I'd be careful buying it atm.

Yeah that's a valid concern. But...since it hit 1400 people have been saying that. A lot of people who had the money but were scared to get on the train at 1400 are kicking themselves now.
But ultimately your right Z, it is a bubble and eventually it will burst like every other bubble. It just seems that the bubble bursting is dependent on the return of consumer confidence and stability in global markets. Those things don't seem imminent.

 

[Will]

Yeah that's a valid concern. But...since it hit 1400 people have been saying that. A lot of people who had the money but were scared to get on the train at 1400 are kicking themselves now.
But ultimately your right Z, it is a bubble and eventually it will burst like every other bubble. It just seems that the bubble bursting is dependent on the return of consumer confidence and stability in global markets. Those things don't seem imminent.

Is it a bubble, or are the currencies pegged against it not holding their value.

Yes, of course there's the bubble aspect to it, as mentioned above. But, inflation is a real and valid factor here. Other currencies that've devalued include the Japanese Yen and Swiss Franc, yet gold doesn't have a mechanism to devalue itself to fight inflation (technically it shouldn't need to). It cannot create more of itself.

 

[sparkchaser]

What currencies are pegged against gold?

 

[Will]

None - sorry, by pegged I meant valued against it. Not fixed, as in non-fiat currencies.