Gold and oil both soar, with gold settling above the key $1,600/oz. psychological mark and crude...


Gold and oil both soar, with gold settling above the key $1,600/oz. psychological mark and crude oil up 7.7% with settlement less than an hour away. But one group of traders is very wrong: Either the European financial crisis is fixed - as energy prices rise on an anticipated increase in demand - or it isn't - as gold prices rise as investors seek a safe haven.
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Comments (21)
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    Gold has LONG lost this haven thing - it trades like other commodities mostly.
    29 Jun 2012, 02:15 PM Reply Like
  • Baby Doomer
    , contributor
    Comments (6) | Send Message
     
    What you claim is true but when the masses wake up to what is really happening and find out that they cannot buy gold at any price those who have it in sufficient quantities will see their fortunes go mesospheric. There will be a infinite demand and a finite supply... ChaChing!
    29 Jun 2012, 07:21 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    You can't eat gold. Get some land and cattle instead if you are a doomer.
    29 Jun 2012, 08:38 PM Reply Like
  • Baby Doomer
    , contributor
    Comments (6) | Send Message
     
    I already have farmland (in Canada and Argentina) and gold and silver. I have offshore real estate and dual citizenship. So I am not concerned about eating. Livestock and corn and wheat and soy and whatever get old, die and rot if you can't consume them in a reasonable period of time. A bagful of gold and silver coins can be used to buy those things when needed. Fiat currency will serve as bath tissue. So, yeah, I'll eat my gold between harvests.
    29 Jun 2012, 09:21 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    Baby Doomer: Are you the ONLY one who "gets it"?

     

    I am so tired of listening to these people who don't think gold and silver are money. What about the palladium and platinum coins? Are they not money too? Are not art and antiques, salt, lumber all money. If you have ANY of ANYTHING, it can be sold for whatever "today show" currency is being swapped for goods and services. Why can't the great unwashed get it in their lil brains what is called money?
    OKAY< let's play their silly game. Let's just call Gold etc. just a 'storehouse of money'. Will that get it?
    I just sold my old work truck for $350.00. Why did I not just leave it out for the trash man, or put a sign on it, "Free Van", and leave the keys in it. It still ran. [if you overlook a blown head gasket]. I sold it for "MONEY",so I could buy me some new shoes.
    Not saying any more: EVEYTHING THAT HAS VALUE IS MONEY, OR A STOREHOUSE OF WEALTH TO GET MONEY.

     

    Is this concept difficult?

     

    Happy wondering...
    Capt. Brian
    The Lost Navigator
    30 Jun 2012, 02:51 PM Reply Like
  • stockjobber
    , contributor
    Comments (5) | Send Message
     
    REFLATION lift BOTH.
    29 Jun 2012, 02:18 PM Reply Like
  • Harry48
    , contributor
    Comments (4) | Send Message
     
    It isn't fixed
    29 Jun 2012, 02:22 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    I am not ready to ring the bell, and send all the trucks out to pick up all the junk silver and gold, but I bet the time is VERY near, If I did not have ANY PM's I think I would begin buying.

     

    Happy Hoarding
    Capt. Brian
    The Lost Navigator
    29 Jun 2012, 02:36 PM Reply Like
  • JOE.D
    , contributor
    Comments (11) | Send Message
     
    What are PM's?
    29 Jun 2012, 06:18 PM Reply Like
  • Stilldazed
    , contributor
    Comments (3566) | Send Message
     
    precious metals
    30 Jun 2012, 03:15 PM Reply Like
  • User 487381
    , contributor
    Comment (1) | Send Message
     
    Everything is being lifted by a strong day overall. Gold trades like any other commodity like the previous comment said. Some may still use it as a safe haven on their broker's advice and it has dropped enough to think there might be a breakout coming. With the economy being sluggish, energy demand won't increase dramatically until there is a reason, like a stronger economy and more jobs.
    29 Jun 2012, 03:44 PM Reply Like
  • bearfund
    , contributor
    Comments (1550) | Send Message
     
    The reason to own gold is that it is a store of value. Neither sovereign debt nor currencies are. The reasons to get out of things that are not stores of value and into things that are isn't necessarily because one fears a collapse in aggregate demand for goods and services. Everything that comes out of the eurozone that traders view as bullish will also make the euro, along with all euro-denominated debt securities, less effective as a store of value and therefore make gold more appealing. Paradoxically, all of the things coming out of the eurozone that traders view as bearish will make the euro a better store of value, but because too much of the monetary base these days is locked up as sovereign debt rather than cash, it will make sovereign debt much riskier as a store of value and therefore also increase the appeal of gold. In other words, all the euro-related value destruction actually occurred in the past and all that's left is to decide which assets will reflect that destruction today. The euro/gold, and dollar/gold, exchange rates reflect the extent to which value destruction has been recognized, not the extent to which it has occurred. Therefore no matter what visible events occur in Europe, the gold exchange rate adjustments, like the rest of the process of value destruction recognition, still have a long ways to go.
    29 Jun 2012, 03:59 PM Reply Like
  • cmuzzio
    , contributor
    Comments (10) | Send Message
     
    This "fixing" is just some form of debt monetization, and thus inflationary drug. Obvious to see both oil and PMs rising
    29 Jun 2012, 04:08 PM Reply Like
  • JOE.D
    , contributor
    Comments (11) | Send Message
     
    Hate to be so ignorant, but what are PM's?
    29 Jun 2012, 06:26 PM Reply Like
  • sikkabooyah
    , contributor
    Comments (457) | Send Message
     
    Philp Morrises (or, better yet, see Daby Boomer's reply, above)
    29 Jun 2012, 07:45 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    Pass the rum, and we won't worry about it? Will you take a piece of eight for the rum?

     

    Capt. Brian
    The Lost Navigator
    30 Jun 2012, 02:53 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    Precious Metals, Gold (Au) Silver (Ag) Palladium (Pd) and Platinum (Pt)..

     

    There are a lot of other 'rare earth metals', but those are the main four traded or used as money.

     

    Yummmm pass the plate

     

    Capt. Brian
    The Lost Navigator
    30 Jun 2012, 02:55 PM Reply Like
  • sikkabooyah
    , contributor
    Comments (457) | Send Message
     
    Someone needs to tell capt Brian that those "other rare earth metals" ain't rare in the sense that most of the 17 elements that comprise this category constitute a significant percentage of the Earth's crust. As an example, cerium is about as abundant as copper. That's the good news; the not-so-good news is that rare earth metals are widely dispersed, so recovery is a very expensive proposition for the companies that seek to mine them in quantity. In a sense, this makes 'em "rare", and perhaps this accounts for the fact that pennies traditionally contain copper rather than cerium.
    20 Aug 2012, 03:48 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    I can't argue with you, so what are you saying? What am I missing that I need to be told, please, this is an educational question, not a barb retort to your comment. Note me and let me in on the party.
    Capt. Brian
    Thanx for the tip o' the hat.
    21 Aug 2012, 08:52 AM Reply Like
  • edsanville
    , contributor
    Comments (73) | Send Message
     
    What kind of logic is this? I guess both camps have been wrong (or right) for about 12 years, as both gold and oil have had a spectacular decade.
    1 Jul 2012, 08:04 AM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2083) | Send Message
     
    More info please, what camps, and what have they been wrong about for 12 years?

     

    Capt. Brian
    21 Aug 2012, 08:53 AM Reply Like
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