Reuters - Global Markets: Shares Lose Momentum

[Xipe Totec]

The Sucker's rally is over already.

LONDON (Reuters) - The relief rally seen in global stock markets after the U.S. elections passed off without a hitch lost momentum on Thursday, as European shares fell and Wall Street prepared for an expected flat opening.

Hopes for a post-election recovery in the dollar were also dashed as the U.S. currency hit a nine-year trough against a basket of currencies.

It also flirted with its weakest-ever level against the euro, despite an assertion from European Central Bank President Jean-Claude Trichet that U.S. policy still favored a strong dollar and that disorderly moves remained undesirable.

(snip)

And what was negative for the dollar was positive for dollar-denominated spot gold prices, which rose to their highest level since December 1988 as funds piled into the yellow metal.

http://story.news.yahoo.com/news?tmpl=story&cid=580&e=3&u=/nm/20041104/bs_nm/markets_global_dc

[RebelYell]

1. Gold is at $431.10 n/t

[Ready4Change]

2. I admit I don't follow gold prices.

Is that higher, lower than it has been? Thanks for info.

[Xipe Totec]

3. HISTORICAL GOLD PRICES- 1833 to Present

U.S. Government gold price has changed only four times from 1792 to the present. Starting at $19.75 per troy ounce, raised to $20.67 in 1834, and $35 in 1934. In 1972, the price was raised to $38 and then to $42.22 in 1973. A two-tiered pricing system was created in 1968, and the market price for gold has been free to fluctuate since then as the table below shows.

In 2001 it was $278 per troy ounce.

http://www.goldinstitute.org/markets/1833tab.html

[Ready4Change]

6. Interesting. Questions?

First, it explains why I never bought my high school ring. :P

Second, is there an accepted correlation between gold prices and economic strength? Looking at those numbers it looks like gold prices rise due to weak economies, and and drop due to strong ones, but have maybe a 3-5 year lag? Or am I just reading things into that which don't exist?

[Xipe Totec]

9. Gold is a hedge against inflation

When prices are stable and currency is strong gold drops.

[Tempest]

4. I'm making a killing in gold

Learning from the first Bush administration, I sold most my stock and bought gold futures at $243.

I've turned a $50,000 investment into $88,000 in four short years.

And with Bush's deficit coming due, I'm being told gold will reach $500 by the end of next year.

[RebelYell]

5. I think we paid around $257

We took our 401k and invested in gold. It has more than paid for the tax penalty and the lack of employer contributions.

[Tempest]

7. I must have bought a week or two before you

Gold shot up from $240ish to $250ish in a very short period of time.

I lost money converting my stock, but like you more than made up for it with the increase in gold.


I'm also invested, although not nearly as heavy, in Euros and I'm doing very well there too.


I hate to bet against my country, but it's not like I have a choice. I believe it's evil now to invest in defense contractors, oil or the drug companies. And they're the only ones doing well.

[i_c_a_White_Ghost]

8. Silver must be up too

since I own quite a few bars

Welcome to bushworld's economy :evilgrin:

[RebelYell]

10. Silver is at $7.35 today

It was around $4.25 two years ago.