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Posts Tagged ‘gold value in dollars’

IS GOLD IN TROUBLE?

BUYING GOLD/SILVER, GOLD & SILVER, GOLD AND MONEY   No comments yet

Below is an article CNBC led with informing its many readers how gold could be in trouble compared to the dollar.  The problem with misinformation is the mainstream accepts this as fact willing to postpone self-preservation until needed.  In the meantime, gold increases and the dollars buying power declines. Here is how the article read.

CNBC: Dollar Rise Will Spell Trouble for Gold: Analysts

“The long-term price of gold could come under pressure from a rallying dollar as the risk from the sovereign debt crisis subsides, “Barclays Capital analysts said on Tuesday.  Read it here if you feel the need.

I’m sure CNBC is great reporting on most economic news but gold related issues may need a little more research.  Below is a chart showing how the US Dollar has declined.


Just to compare dollars to gold I want to show a gold chart so we all understand what is happening with the gold to dollars ratio.  If you would like to see the dollar’s decline in gold see it here.



Let me be clear as possible seeing how many are confused exactly how the value of gold is determined.  To gauge gold in dollars is inaccurate to say the least.  Dollars, while in decline, sometimes represents a false increase in value of assets but when we take the asset and divide it by ounces or grams of gold we usually see a different picture.  The website Priced In Gold does a great job breaking down real estate, Dow Jones, USD, oil, etc to see how historically they move up or down in gold not dollars.

For CNBC to run a story questioning possible declines in gold compared to dollars is like saying a pond is down.  It is unlikely a pond would be down but the water level within the pond certainly could be.  For this example a pond is gold and water is dollars.  One is stationary and one fluctuates.  Very important to understand how gold is a baseline of value and all else measures to it.

NEWS WORTHY:

THE DAILY CALLER: Carville: 2012 could be ‘very rough’ for Obama, says civil unrest ‘imminently possible’

“[L]ook, I don’t think anybody — if 54,000 new jobs is the new standard, it’s going to be a very, very rough 2012 for President Obama,  read it here.

NEWS WORTHY:

MONEYNEWS.COM  This Investment Will Grow in Any Economy

One of the most defensive and recession-resistant businesses is also a commodity – food. Agriculture stocks and commodities can perform well in times of slow growth or inflation. People tend to go on eating in any economy. Food and agricultural inputs (including seeds and fertilizer) also are tangible goods that should maintain value during times of inflation and falling dollar values.

This may well be just a temporary “soft patch” in the economy, like last year. The powerful forces of increasing global demand and a weakening dollar that drove commodity prices skyward during the past year may well resume in haste as the economy picks up. Inflation and rising interest rates will crush bond prices and investors on the sidelines could miss a huge opportunity.  Read more here.

NEWS WORTHY:

THE STREET:  Gold, Silver Prices Tiptoe Higher

Streible points out that gold has been moving with the dollar recently, disrupting their typical inverse correlation, but a weaker dollar makes gold cheaper in other currencies, which will only add to its appeal. Streible isn’t scared off by high prices and urges investors who aren’t exposed to gold or silver to dollar cost average each month, or buy a set amount of the metals regardless of price.  Read more here.

FAIR PRICES OF GOLD & SILVER (10:30 am MDT)

  • ONE OUNCE SILVER BULLION:                        $41.54

  • ONE OUNCE SILVER ROUND:                            $38.89

  • ONE OUNCE GOLD BULLION:                            $1616

  • ONE OUNCE GOLD BAR:                                      $1576



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