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Gold Rises for Sixth Straight Session on Bets Dollar to Drop
(AG)
Nov 20, 16:52
Gold Rises for Sixth Straight Session on Bets Dollar to Drop
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Pham-Duy Nguyen
Nov. 20 (Bloomberg) -- Gold prices climbed for the sixth straight session on speculation that the dollar will decline, boosting demand for the metal as an alternative investment.
The dollar touched a 15-month low against a basket of major currencies on Nov. 16. The greenback climbed as much as 0.8 percent today. Gold reached a record $1,153.40 an ounce on Nov. 18 and has fallen once in 15 sessions this month. The metal has climbed 30 percent this year, heading for a ninth straight annual gain.
“People are still buying gold because they think the dollar hasn’t been broken yet,” said Marty McNeill, a trader at R.F. Lafferty Inc. in New York. “If the dollar rallies, it’s an excuse to sell for profit. Any dip in prices is a buying opportunity.”
Gold futures for December delivery rose $4.90, or 0.4 percent, to $1,146.80 on the Comex division of the New York Mercantile Exchange. Earlier, the price dropped as much as 0.8 percent. The metal gained 3.2 percent in the previous five sessions. In November, the price has climbed more than $100. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=afNARFHjW.f0
Bernanke Signals ‘Extended’ Low-Rate Period May Become Longer
(vronsky)
Nov 20, 16:44
Nov. 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke’s diagnosis of a weak U.S. economy and labor market signaled that the central bank’s extended period of low borrowing costs may get even longer.
Bernanke said “significant economic challenges remain,” with lending constrained and the jobless rate above 10 percent. Speaking in New York yesterday, he said U.S. asset prices aren’t out of line with underlying values, and central bank policy will ensure that the “dollar is strong.”
Treasury two-year notes rose and the dollar weakened as investors reduced bets the Fed will raise interest rates by August. In his most extensive comments on the economy since July, Bernanke repeated the Fed’s Nov. 4 pledge to keep rates low for an “extended period,” and he said forecasters anticipate “moderate” growth this quarter after the 3.5 percent pace of expansion in the prior three months.
The Fed chief wants to “keep the liquidity spigot wide open for some time to come,” said Stephen Stanley, chief economist at RBS Capital Markets in Stamford, Connecticut. “Bernanke just locked the Fed into an easy monetary policy, at least in the short term, so any implicit threat of response to dollar declines simply has zero credibility.” CON'T
The 'translation' of the above means
Buy Signals ‘Extended’ Gold Bull Period May Become Longer !
Did You Guys Ever See Those Lawyer Commercials?
(Mr.Copper)
Nov 20, 16:43
They go like...."We owed the IRS $25,000 but only paid...$3,000. Then a few more...We owed the IRS $95,000 but only paid $15,000. We owed the IRS $3,000,000 but only paid $750,000. :)
In the future? We should see commercials of homeowners saying....
"We owed the bank $500,000 for our house, but only paid $250,000." Then another...
"We paid, er, the bank paid $400,000 for our house, and we paid nothing." :)
There is and has been absolutely no dicipline in this entire financial system. It was run by TPTB like a game. A game of chance. You could even say it was Economic Anarchy. Or Mob Rule Economics.
These days its starting to look like a Marshal Law Economy. I can't stop laughing here listening to CNBC every day.
I'm very optimistic for the future now, because the prior ways are falling apart. Everything should sort itself out naturally.
And that trend already started with Gold climbing since 2001. Gold rising is NOT a symptom of Economic Chaos, it's a RESULT of the past, and its a sign the system is fixing itself.
Don't listen at all to the Media. Those bums should be under oath EVERY day, with threats of purgury and jail sentences.
GDXJ shoutd rise about 136% in the next 6 months
(ORACLE)
Nov 20, 16:40
The Junior Gold Miners ETF SYMBOL IS GDXJ.
Here are the rationale for by forecast that GDXJ shoutd rise about 140% in the next 6 months:
Consequenly, one might see GDXJ soar to about $64.
The above forecasts assumes the dollar will continue to decline, accompanied by a corresponding rise in the price of gold.
CAUSES OF INFLATION…OR Ways to increase inflation
(DrDoolittle)
Nov 20, 16:39
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the percentage change in a general price index (normally the Consumer Price Index) over time.
- Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.
- The consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.
- According to Harvard professors of economics Gregory Mankiw and Kenneth Rogoff, a higher rate of inflation will set the platform for a decline in real interest rates and for an increase in current consumer expenditure. Additionally a higher rate of inflation will work towards the reduction of the debt burden. This, they contend, will provide a necessary boost to economic activity.
So what is the level of inflation required to pull the economy from a deflationary black hole? Some experts, such as Professor Rogoff, Mankiew and Klugman hold that 6 percent is the right figure - Per Rogoff: "I'm advocating 6 percent inflation for at least a couple of years. It would ameliorate the debt bomb and help us work through the deleveraging process."
- Devalue the Currency
In the housing market, if you buy a house for $500,000 in 2006 and the value of the house drops to $300,000 in 2009 (loss of $200,000), but the US Government cuts the value of the US Dollar by half by 2010 by spending uncontrollably… your house is suddenly worth $600,000! A net gain of $100,000!!!
- Increase the Price of Gold
- Go back on the Gold Standard
Most competent economists agree that low inflation breeds higher unemployment; ergo fomenting greater inflation over a protracted period will effectively reduce UNEMPLOYMENT. And UNEMPLOYMENT is the biggest concern of Fed Chairman Bernanke and President Obama. Consequently, rest assured the Washington will continue to orchestrate an orderly decline of the US dollar of about two percent monthly well into next year, or least and until the US UNEMPLOYMENT RATE begins to decline.
My best guess is we will see another 13-15 percent drop in the US Dollar Index before employment and the economy begin to show signs of positive growth.
Meanwhile precious metal stocks will continue to appreciate as a multiple of gold's increase in value. This is due to the LEVERAGE gold and silver stocks enjoy over the bullion. Historically, HUI has risen 2.5 to 3.5 times gold's appreciation in a protracted bull market....like we are presently are experiencing.
Richard 640: your 15:52
(1942)
Nov 20, 16:34
Bullish! I agree totally! HUI down a bit: Stock traders (PM) are looking for a down market Monday and aren't really wanting to hold oor buy more over the weekend.
Gold up $5+ even with the $$ gaining a third point. And most of all, those Crimex contracts selling even as the $$ climbs.
Then on top of that, isn't Monday expiration of calls and other derivatives in the gold market? Looks to me like holders of these instruments plan on collecting this time.
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