Tuesday, September 14, 2010

Gold And Silver Prices Hit Record High

Ever get the feeling that the big investors know where the dollar is heading but are afraid to say it out loud? Significant inflation is not a forgone conclusion, but seems where we are headed unless preventative actions are taken post haste.


"Gold prices touched a record high Tuesday after disappointing reports on Europe's economy, a weaker dollar and a seasonal increase in demand for gold jewelry.
Gold for December delivery touched a record of $1,276.50 during Tuesday trading, before settling $24.60, or 2 percent, higher at $1,271.70 an ounce.

Silver followed gold, rising 28.1 cents to $20.432 an ounce. It also touched a new high of $20.55 an ounce during the day.

The dollar fell against other major currencies, which typically leads to more investments in commodities. A weaker dollar makes commodities priced in dollars more attractive for foreign investors.


  1. Because people are buying gold, possibly, as a hedge against inflation- (where none exists and we are actually on the verge of deflation) leads you to the conclusion that: "Significant inflation is not a forgone conclusion, but seems where we are headed unless preventative actions are taken post haste."?

    just because a market exists for peoples misplaced anxieties doesn't mean the market is rational, and most assuredly not to the conclusion that we are therefore faced with an inflation problem. What kind of reasoning is that?

  2. @Anonymous - it is exactly people's anxieties (which here are not misplaced) that can cause the inflation. They are looking at unprecedented deficits, and a staggering debt wondering how we are going to get out of the hole as we dig ourselves deeper.

  3. "it is exactly people's anxieties that can cause inflation" again, what?
    How does people buying gold coins (which tend to be advertised on right-wing media platforms like fox news and directed against a particularly gullible subset of consumers) cause inflation?

    It doesn't anymore then if in reaction to fear over the deficit ( which most people don't really care about as much as say the unemployment level) people bought barrels of horse shit. People are just buying gold because other people are telling them to be scared. In the real world the United States is threatened by delflation. Inflation is not even an issue, the fact we are even discussing it is a comment on how far the discourse is from actual public policy in american life.

  4. @Anonymous - "How does people buying gold coins ... cause inflation?" People buying gold coins is not causing the inflation, it is the fear of significant inflation that is causing people to turn more toward gold.

  5. Yes, alot of people fear inflation. That doesn't mean there is evidence of inflation. Nor does it indicate that we are "heading for inflation".

  6. @Anonymous - The fear of inflation is capable of causing it; should that fear, even if unjustified, become wide spread. People start demanding more for their work/goods which in turn forces other people to demand more for their work/goods... .

    The legitimate fear of inflation comes from unsustainable debt, runaway spending ... real problems that could have a significant effect.


Related Posts with Thumbnails

Like what you read; Subscribe/Fan/Follow