Just some random thoughts today

Posts tagged ‘Great Depression’

Gold Closed Today at $1,001.80

My prediction that gold would hit $1,000 per ounce by the end of March came a little early when gold closed today at $1,001.80.

It took nearly 6 months after the 2008 financial panic that gold is finally is starting to glitter.  I was surprised that the price was held so low since the demand for the precious metal is so high.

I still find it hard to purchase gold sovergns, eagles or any other types of coins and must result to carrying large sums of money in the chance the I can find any dealer in town that has a supply I can buy.

How high will go is anyone’s guess. But with this unrelentless printing of fiat money, it will only go higher.  My guess is that once Congress decides on another trillion dollar deficit 2009 budget — which is 6 months late — gold is going way up.

Gold $900 Oz

Gold pushed upward to $899.10/oz today!  I’m sure it’s heading much higher once everyone figures out that paper money isn’t back by anything but a bunch of politicians full of hot air…

IMO, gold is heading upwards.  How high nobody knows but some gold prognosticators think it’s heading to $5000 an ounce.  Perhaps this will happen when start calling this economic collapse the “Great Great Depression.”

I bought two Krugerrands this week at $858/oz so I’m a little ahead for this week.  Now I’m not really looking at gold as an investment, but as a hedge to preserve wealth when the USD dies with a loud hissing sound.  But it’s good to know that the gold I got for $800/oz last November is worth more than I paid for.

Price of Gold Shoots Up Over $800

The price of gold did a jump shot and hit $800 today.  With a price increase of over $50, gold is becoming … well gold again…  He shoots … Gooooold, Goooooold, Gooooold, Gooooold … I guess you have to watch a soccer match announced in Spanish.

I wanted to buy gold earlier this week when it was hovering around $700.  Doh, sometimes you want to kick yourself.

I wasn’t able to make it to the bank until today to withdraw the money for the purchase and I hate carry a couple of grand around with me.  The money is still safer in the bank for now…

It’s really hard to get gold on the street since none of the coin dealers have it in stock.  But with last dip, people got scared and started to sell.  I was only able to get a few ozs:

  • 2 oz of the California Gold Coin
  • 1/2 oz gold eagle
  • 1/4 oz Canadian dollar

Senate Vote on Bailout: Passes 74-25

The Senate vote on the Wall Street Bailout Bill passed by a margin of 74 to 25.  Senators voting against the bill were:

  1. Sen. Wayne Allard (R-CO)
  2. Sen. John Barrasso (R-WY)
  3. Sen. Sam Brownback (R-KS)
  4. Sen. Jim Bunning (R-KY)
  5. Sen. Maria Cantwell (D-WA)
  6. Sen. Thad Cochran (R-MS)
  7. Sen. Mike Crapo (R-ID)
  8. Sen. Jim DeMint (R-SC)
  9. Sen. Elizabeth Dole (R-NC)
  10. Sen. Byron Dorgan (D-ND)
  11. Sen. Michael Enzi (R-WY)
  12. Sen. Russ Feingold (D-WI)
  13. Sen. James Inhofe (R-OK)
  14. Sen. Tim Johnson (D-SD)
  15. Sen. Mary Landrieu (D-LA)
  16. Sen. Bill Nelson (D-FL)
  17. Sen. Pat Roberts (R-KS)
  18. Sen. Bernie Sanders (I-VT)
  19. Sen. Jeff Sessions (R-AL)
  20. Sen. Richard Shelby (R-AL)
  21. Sen. Debbie Stabenow (D-MI)
  22. Sen. Jon Tester (D-MT)
  23. Sen. David Vitter (R-LA)
  24. Sen. Roger Wicker (R-MS)
  25. Sen. Ron Wyden (D-OR)

You can bless them or curse them in a few months if the economy and dollar don’t tank.  Only time will tell but history repeats itself with nearly identical legislation in 1931-1932 which caused the Great Depression.

Price of Gold Jumps to $867 Per Ounce

Today, the price of gold per ounce jumped nearly $90 on fears of a collapsing economy.  Investors and ordinary citizens are rushing out and buying gold in droves.  I’m pretty sure that gold can easily reach several thousand dollars per ounce.

The nationalization of debt continues to put downward pressure on equities and a forthcoming collapse of the dollar.  No wonder that polls now show Obama leading McCain by +5 when only Monday the rolls were reversed with McCain leading Obama by +2.

McCain who throughout his career has been a strong advocate for deregulation that only brought us to the brink of bankruptcy.  Now he changes his life-long position after the stock market drop %10 in two days?  The economy is fundamentally strong he says.  What planet is this guy from?

Laws written during the Great Depression that were meant to protect us were broken and not enforced by the current Administration.  There’s a reason for deregulation: we’re greedy bastards.

So go out and get your gold while you can because if history repeats itself, I’m sure the government will steal it from you (I mean “nationalize it”.)

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