The price of gold hit $1361 this past week. An increase of $40.00. One gold analyst suggested that gold would hit $1400 by the end of October. At the present rate, gold will hit that by the end of this coming week.
Other Events:
Home Foreclosures:
Bank of America suspended all home foreclosures. Bank of America now has so many homes in foreclosure its processors can not determine who is making their mortgage payments and who is not.
Unemployment:
Unemployment surprisingly continues at only 9.6%. This despite state and city governments continue to shed personnel to balance budgets. Cities continue to jettison teachers, police, firemen, and maintenance personnel, but cut no administrative personnel which is where most cuts need to be made.
On the political front:
No one is making any suggestions about resolving our present economic problems.
President Obama's answer to our economic problems is blame the Republicans.
The Democrat answer to our economic problems is blame the Republicans.
What is worse, the Republican answer to our economic problems is blame the Democrats.
No wonder everyone is jumping on the Tea Party bandwagon!
Another big rat jumped from the Obama ship this past week. At this rate, by the time President Obama comes up for reelection, the only one left of the original Obama administration will be Michelle Obama!
Dollar Strength:
The dollar did strengthen against some currencies, but overall continued its slide against most. This caused an increase in the price of oil, which eventually will trigger inflation.
Factor in all of the above and it is pretty obvious the price of gold will continue rising.
Factor in the rate of ascent of the price of gold, and it is pretty obvious that gold speculators are creating a bubble that will be pricked by someone.
Look for a market correction around $1550 an ounce. Remember that the primary cause of the rise in the price of gold has to do with dollar speculation by the overseas central banks. When those banks stop supporting the price of gold, it will drop one to two hundred dollars an ounce. This will drive out the gold speculators and the price of gold will continue to ascend more in line with other commodities and natural resources.
As a long term investment, gold will outperform the stock market and other investment vehicles. Expect the price of gold to hit $3,000 within two years.
Showing posts with label gold price. Show all posts
Showing posts with label gold price. Show all posts
Monday, October 11, 2010
Wednesday, October 6, 2010
1 October gold price assessment
The price of gold continued its rise this past week. Adding another $20.00. Even the gold bear short sellers are selling out and growing bull horns. One gold analyst predicted that the price of gold will hit $1400 by the end of October. It is pretty obvious that the price of gold will be dropping no time soon.
The US economy continues to struggle. Two more banks failed.
Harrisburg, capital of Pennsylvania, is approaching bankruptcy and is looking to the state itself for help with its budgetary woes.
Most major cities and large states are facing severe budget shortfalls. One in seven homes is now in foreclosure. Faced with declining real estate taxes, and declining sales tax revenues, these cities and states are now beginning to look to the federal government for help.
On the federal government side, the US House of Representatives adjourned for the reelection campaign. With the upcoming holidays and winter, it will be spring before anybody can agree that there is an economic problem that needs to be addressed.
On the executive side of government, senators and congressmen are distancing themselves from the President as his popularity fades. Aides and advisors to the President are jumping to other jobs while the popularity of the President still has some strength.
Overseas, the currencies of the European Economic Community did strengthen this past week. This will probably be short lived as the citizens of Ireland, Great Britain, Spain, and Greece, among others, protest the taxes and restrictions placed on them by their budgetary problems.
The dollar continued its slide against most of the major currencies.
Central banks continued buying up gold as it hit the market.
Gold price analysts have now come to accept that $1300 an ounce for gold is not some sort of fragile bubble which might burst momentarily. They are accepting that $2,000, $3,000, $5,000, even $7,000 an ounce is a possibility.
If the US continues its present rate of spending the dollar will become relatively worthless against other currencies. This will result in either a formal devaluation of the dollar by the US government, or an informal currency adjustment by other nations.
This devaluation will set off a round of inflation in the United States which will be completely unpredictable in its extent.
Gold price at $2,000, $3,000, $5,000, or $7,000 an ounce becomes a distinctive possibility. One blogger even suggested $25,000 an ounce.
Buy gold while the price is still cheap!
The US economy continues to struggle. Two more banks failed.
Harrisburg, capital of Pennsylvania, is approaching bankruptcy and is looking to the state itself for help with its budgetary woes.
Most major cities and large states are facing severe budget shortfalls. One in seven homes is now in foreclosure. Faced with declining real estate taxes, and declining sales tax revenues, these cities and states are now beginning to look to the federal government for help.
On the federal government side, the US House of Representatives adjourned for the reelection campaign. With the upcoming holidays and winter, it will be spring before anybody can agree that there is an economic problem that needs to be addressed.
On the executive side of government, senators and congressmen are distancing themselves from the President as his popularity fades. Aides and advisors to the President are jumping to other jobs while the popularity of the President still has some strength.
Overseas, the currencies of the European Economic Community did strengthen this past week. This will probably be short lived as the citizens of Ireland, Great Britain, Spain, and Greece, among others, protest the taxes and restrictions placed on them by their budgetary problems.
The dollar continued its slide against most of the major currencies.
Central banks continued buying up gold as it hit the market.
Gold price analysts have now come to accept that $1300 an ounce for gold is not some sort of fragile bubble which might burst momentarily. They are accepting that $2,000, $3,000, $5,000, even $7,000 an ounce is a possibility.
If the US continues its present rate of spending the dollar will become relatively worthless against other currencies. This will result in either a formal devaluation of the dollar by the US government, or an informal currency adjustment by other nations.
This devaluation will set off a round of inflation in the United States which will be completely unpredictable in its extent.
Gold price at $2,000, $3,000, $5,000, or $7,000 an ounce becomes a distinctive possibility. One blogger even suggested $25,000 an ounce.
Buy gold while the price is still cheap!
Tuesday, September 28, 2010
The High Price of Gold
Items concerning the economy noted this past week.
Home foreclosures at highest level since recession started.
Number of new applicants for unemployment rose.
Unemployment rate not dropping.
More people looking for work.
Credit unions are struggling to stay solvent. This from restructuring, writing down, or writing off home and consumer loans.
The government is arranging a large financial bailout for credit unions
The US economy is struggling.
The US government seems to have no idea about how to put any direction into the economy.
US debt growing at an alarming rate.
US dollar still dropping against all major currencies.
Gold hit $1,300 an ounce.
Central banks still buying gold even at $1,300 an ounce.
I saw an article from one analyst stating that the price of gold hit $850 in the 1980s before going into decline. That if that figure was adjusted for inflation, the price of gold would have to hit $3,000 an ounce to be equivalent. One pundit even suggested that gold will hit $7,000 an ounce.
One thing is obvious. The price of gold will not be moderating anytime soon.
Crops in Russia and China this past summer were damaged by floods and drought.
Farmers in America had a good year, but one third of all corn is now being used for ethanol. Indicating no moderation of prices in the supermarket.
Consumers have reduced debt by one third over the past two years. They are using debit cards rather than pay the high interest rates. This will cause the failure of more banks. Loss of jobs, and more consolidation in the financial industry. The economy will not be recovering before spring of 2011.
Most people think that the high price of gold is caused by investors and speculators. Nothing could be farther from the truth. The high price of gold is being caused by the central banks, dumping their dollars prior to a major devaluation.
By spring of 2011, the price of gold will hit $1,800 an ounce, OR BETTER!
Home foreclosures at highest level since recession started.
Number of new applicants for unemployment rose.
Unemployment rate not dropping.
More people looking for work.
Credit unions are struggling to stay solvent. This from restructuring, writing down, or writing off home and consumer loans.
The government is arranging a large financial bailout for credit unions
The US economy is struggling.
The US government seems to have no idea about how to put any direction into the economy.
US debt growing at an alarming rate.
US dollar still dropping against all major currencies.
Gold hit $1,300 an ounce.
Central banks still buying gold even at $1,300 an ounce.
I saw an article from one analyst stating that the price of gold hit $850 in the 1980s before going into decline. That if that figure was adjusted for inflation, the price of gold would have to hit $3,000 an ounce to be equivalent. One pundit even suggested that gold will hit $7,000 an ounce.
One thing is obvious. The price of gold will not be moderating anytime soon.
Crops in Russia and China this past summer were damaged by floods and drought.
Farmers in America had a good year, but one third of all corn is now being used for ethanol. Indicating no moderation of prices in the supermarket.
Consumers have reduced debt by one third over the past two years. They are using debit cards rather than pay the high interest rates. This will cause the failure of more banks. Loss of jobs, and more consolidation in the financial industry. The economy will not be recovering before spring of 2011.
Most people think that the high price of gold is caused by investors and speculators. Nothing could be farther from the truth. The high price of gold is being caused by the central banks, dumping their dollars prior to a major devaluation.
By spring of 2011, the price of gold will hit $1,800 an ounce, OR BETTER!
Subscribe to:
Posts (Atom)