[Vision2020] 7-25-2011: Gold hits fresh record high at $1, 623.49/oz overnight

[Moscow Cares]

As a sidebar . . .

Do not confuse me (Tom Hansen) with the scientist below (Dr. Steven Hansen), jus' because I participated in an "experiment" in '68 and wasn't lucky 'nuff to be in the control group.

Suffice it to say, though, that I'm 'lot better now.  At least that's what the voices tell me.

You may, though, continue to confuse me (as so so many of you, I am sure, do) with Matt Damon.

(Sorry, Ted, about my interruption.)

Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho
 
"The Pessimist complains about the wind, the Optimist expects it to change and the Realist adjusts his sails."

- Unknown


On Jul 25, 2011, at 8:42, Ted Moffett <starbliss at gmail.com> wrote:

> During the stock market/banking collapse in 2008-9 I talked with a
> Vision2020 participant about financial safe havens for investment in
> an economic crisis.  I mentioned that gold was considered a haven by
> some investors, but the person I was talking with indicated this was
> not a wise investment.  However, given gold in 2008 hit a high around
> 1010 USD an ounce, and where gold is today, investing in gold in 2008
> would today offer a nice return:
> 
> Gold prices in 2008:
> 
> http://www.kitco.com/scripts/hist_charts/monthly_graphs.plx
> -----------------------
> http://news.tradingcharts.com/futures/5/7/162089475.html
> 
> By Francesca Freeman
> 
> Of DOW JONES NEWSWIRES
> 
> LONDON (Dow Jones)--Spot gold hit a fresh record high of $1,623.49 a
> troy ounce in Europe Monday amid renewed concern over U.S. and
> European sovereign debt, and while shifts in macro sentiment are
> likely to keep prices choppy in coming weeks, market players expect
> entrenched risk aversion to support further gains.
> 
> The failure of U.S. congressional leaders to reach an agreement over
> raising the nation's debt ceiling over the weekend initially spurred
> gold's overnight rally, as investors sought solace in the metal's
> perceived safety. And while prices later cooled as some players booked
> profits, news that Moody's Investors Service had cut Greece's debt
> rating to Ca, a cut above default, energized the gold market once
> more.
> 
> At 1047 GMT, spot gold traded 1.1% higher at $1,617.53/oz, just short
> of earlier highs. Spot silver also gained ground, hitting an 11-week
> high of $41.073/oz before trading at $40.813/oz, up 2.0%. Like gold,
> silver is often seen as a safe place to park cash in times of economic
> insecurity.
> 
> "The aura of uncertainty over the ongoing U.S. debt ceiling talks [is]
> likely providing a solid floor under price levels," said Morgan
> Stanley.
> 
> This, combined with concerns over debt contagion in Europe, Chinese
> inflation, and generally higher oil prices "will provide adequate
> impetus to keep prices at elevated levels," the bank added.
> 
> However, with investors' attention locked on sovereign debt issues on
> both sides of the Atlantic, prices are likely to be remain volatile in
> coming weeks as the wider market mood dictates trading sentiment, said
> trade players.
> 
> "Things will be erratic from here, given the way prices have leapt,"
> said a senior industry participant.
> 
> However, while a U.S. debt limit agreement could see prices initially
> slip, longer-term demand for so-called safe haven assets should remain
> ingrained for the foreseeable future, he added.
> 
> "This is not a trade that is attracting a lot of fringe playing," said
> the participant. "This is more about people looking for an alternative
> financial asset amid a lack of trust for the European and U.S.
> governments."
> 
> According to weekly data from the Commodity Futures Trading
> Commission, the net speculative length of Comex gold futures increased
> 86.4 tons to 845.7 tons in the week to July 22, the highest level this
> year. Additionally, holdings in gold exchanged-traded funds increased
> by 19.1 tons to 2,191.7 tons, marking a new end-of-week high for 2011,
> according to Standard Bank.
> 
> "This enforces our strategic view that investor interest will remain
> supportive over the long-term," said Standard Bank analyst Marc
> Ground.
> 
> -By Francesca Freeman, Dow Jones Newswires; +44 (0)20 7842 9412;
> francesca.freeman at dowjones.com
> 
> (END) Dow Jones Newswires
> 
> 07-25-11 0712ET
> ------------------------------------------
> Vision2020 Post: Ted Moffett
> 
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