Gold Prices Spike as Recession Worries Spread

NEW YORK — Gold prices soared again Wednesday, closing in on $1,700 an ounce, as worries that governments won’t be able to grow their way out of debt caused a rush into the safe haven asset.

Gold for December delivery rose $21.80 to settle at $1,666.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,675.90 and as low as $1,654.40 while the spot gold price was a bit less enthusiastic adding only $3.50, according to Kitco’s gold index.

Most Recent Quotes from www.kitco.com

Silver prices closed up $1.66 to $41.75 an ounce.

The US Dollar index was down 0.69% at $74.02 while the euro was up 0.75% vs. the dollar.

Advertisements

Jim Rogers Says, Gold Will Hit $2,000 and USA Will Lose Status As The World’s Reserve Currency

Good Time To Buy Gold

Good Time To Buy Gold

Famed investor Jim Rogers is “quite sure gold will go over $2000 per ounce during this bull market.”Rogers’ confidence gold will continue to rally stems from a view the U.S. dollar is on its way to losing status as the world’s reserve currency.”Is it going to happen? Yes,” Rogers says. “I don’t like saying it [and] I’m extremely worried about it but we have to deal with the facts. America is not getting better [and] the dollar is going to be replaced just like pound sterling [was].”Rogers didn’t offer a timetable, and it’s likely gold would exceed $2000 per ounce if the dollar were to lose its reserve status.Still, “I wouldn’t buy gold today,” Rogers says. “I think I’ll make more money in other commodities, which are cheaper,” as discussed in more detail here.Among many others, Rogers is “worried about the fact the U.S. government is printing huge amounts, spending gigantic amounts of money it doesn’t have,” the investor and author says. “People are very worried [and] skeptical about paper money [and] looking for places to protect themselves. The best way is to buy real assets. [That] has always protected one during currency turmoil, and it will again.”

Vodpod videos no longer available.

more about “Jim Rogers Says, Gold Will Hit $2,000…“, posted with vodpod

Gold Even At 1055 Still A Lousy Investment

The gold bugs are finally enjoying their moment in the sun. After 20 horrible years, in which gold dropped from $800 to $250 an ounce, the sometimes-precious metal is now roaring to all-time highs.Some folks, moreover, think this is only the beginning. Peter Schiff recently told Tech Ticker gold is headed to $5,000 an ounce.But that doesn’t mean it’s a great investment!In fact, says our guest Jon Najarian of OptionMonster, even with the run over the past five years, gold is still trading at about half it’s all-time peak after adjusting for inflation. Given that gold is supposed to protect you from inflation, this performance is abysmal.What’s more, gold has actually performed poorly this year relative to other more-boring metals–like copper and silver.Why?In part because those metals are actually used for something. China’s building houses again, which means they’re scarfing up all the copper in the world. But one thing is for certain: The higher gold prices go, the more people will be convinced it is a great investment. And the more people will fight each other out of the way to put it in their portfolios.

Vodpod videos no longer available.

Peter Schiff – U.S. Rally Is Doomed Gold Will Hit 5000

Unlike the “legitimate bull markets” of many foreign markets, Peter Schiff believes the U.S. is merely experiencing a “rally in a bear market,” and is lagging the rest of the world “for a reason.”The worst is not over, according to Euro Pacific Capital’s Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.A longtime dollar bear and gold bull, he foresees gold hitting $5000 per ounce “in the next couple of years,” and predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1.Schiff believes gold is currently “climbing a wall of worry” but will eventually become as hot as tech stocks in 1999 and start moving up $100 per day.Schiff’s forecast is based on his view the U.S. dollar is going to collapse under the weight of our massive deficit and reckless policies of the Obama administration, which he compares to the massive spending programs of the 1960s, which paved the way for gold’s ascent in the 1970s. “Obama is making the same mistakes as Bush, but he’s doing them on a grander scale,” says Schiff, who is running for U.S. Senate in Connecticut as a Republican.In addition to gold, Schiff remains bullish on Asia, most notably China. His firm recently launched the Euro Pacific Halter China fund, and Schiff believes “there’s a lot of value” in China and thinks the renminbi could “double or triple” when it’s depegged from the dollar.That will make Chinese assets more valuable when measured in dollars, he says.Schiff presciently called the bursting of the debt bubble and subsequent rout in financial assets, and his current forecasts may very well come to fruition. But Schiff’s confidence that the rest of the world (notably Asia) will prosper as the dollar loses its reserve status and America’s economy collapses seems dubious, at best.Then again, Schiff is nothing if not (supremely) confident.

Vodpod videos no longer available.

Marc Faber – Emerging Market Economies Will Challenge and Surpass the West

Marc Faber has an informal rule never to spend more than 10 days in a country before rushing to the next one. In addition to lots of frequent-flyer miles, this gives him the chance to see firsthand how lots of the world is doing.So how’s it doing?Better than the U.S., says Faber, the editor of the The Gloom, Boom & Doom Report.In the U.S. we have a “structural unemployment” problem. We have a debt problem. We have an economy-propped-up-by-frantic-government-spending problem. And, by in large, while the rich get richer, the middle class does not benefit, especially during the boom days earlier this decade.The rest of the world has problems, too, of course, Faber says, but they’re not as bad as ours. He’s observed businesses in emerging markets in Asia are less vulnerable to market fluctuations because they tend to be cash rich, and therefore less reliant on debt and leverage. He also says there’s a hunger and competition, in countries like China and India, that’s missing in the U.S.So go ahead and enjoy the “v-shaped” recovery while it lasts, says Faber, who has already fled to Hong Kong.

Vodpod videos no longer available.

Go for Gold Inflation Is Here and Going to Get “Much Much Worse” Pento Says: Tech Ticker, Yahoo! Finance

* Bernanke says recession ‘very likely over’ – AP * Fed Chief Says Recession Is ‘Very Likely Over’ – NYT.com * Bernanke Sees Recession’s End – WSJ.com

Vodpod videos no longer available.

Buffett Says, We Are Doomed – We’re Going to Be Crushed Under A Mountain of Debt

A highly influential American has finally hit the panic button about the tremendous mountain of debt the country is piling up.Last year, Warren Buffett says, we were justified in using any means necessary to stave off another Great Depression. Now that the economy is beginning to recover, however, we need to curtail our out-of-control spending, or we’ll destroy the value of the dollar and many Americans’ life savings.Some not-so-fun facts from Buffett’s editorial today in the New York Times: * Congress is now spending 185% of what it takes in * Our deficit is a post WWII record of 13% of GDP * Our debt is growing by 1% a month * We are borrowing $1.8 trillion a year$1.8 trillion is a lot of money. Even if the Chinese lend us $400 billion a year and Americans save a remarkable $500 billion and lend it to the government, we’ll still need another $900 billion.So, where’s it going to come from? Most likely the printing press. And, ultimately, Buffett says, that will destroy the value of the dollar.

Vodpod videos no longer available.