Reply #36: Gold's run-up: What's it mean?

[AnneD]

NEW YORK — An ounce of gold last week reached $800 for the first time since 1980. Here are some questions and answers about what the 27-year high in gold prices means for consumers and investors.

Q: How will rising gold prices affect the average consumer?

A: Not a whole lot. Some jewelry retailers, especially small ones, might have to pass along some of the higher costs to consumers in order to make a profit. It's important to note, though, that craftsmanship accounts for jewelry pricing more than raw materials do. Gold is used in small amounts in electronics, too, but not enough to affect price tags noticeably.

Growing demand for gold jewelry in India and China is one reason gold prices have increased over the past several years. Other reasons include the falling dollar and the fact that the commodities markets have become popular for speculators.

What affects people more than surging gold prices is the rise in prices of everyday commodities, like oil, corn and industrial metals. The weakening dollar is also a concern for Americans, because it makes international travel more expensive and could start making imported goods pricier.

http://www.chron.com/disp/story.mpl/business/5269264.html


This is a little Q&A primer...just thought I throw it in for new lurkers. But just remember-the gov has seized gold in the past and by law can seize it anytime they damn well please. Use caution. Scoundrels abound. IMHO-folks will flock to gold until they realize that it just 'keeps up' with inflation-it doesn't beat inflation....and that is what you want