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jose · Apr 19, 2006, 12:03 pm

Has anyone else noted the rapid price rise in precious metal in the last month?
gold is up $70 an ounce, and silver has shot up 40% this month alone, i wonder why
http://www.kitco.com/market/

Athena · Apr 19, 2006, 12:43 pm

You can find an explanation at this site.

Quote:

http://www.theglobeandmail.com/servl.../Business/home

Investor interest has soared for several reasons, said Jon Nadler, Kitco.com's investment products analyst. Demand in China and India is growing, while supply is dwindling. Worries about a decline in the U.S. dollar are mounting. Energy prices are soaring and tensions in Israel and Iran are rising.

tman_ndsu08 · Apr 19, 2006, 01:33 pm

Gold is not increasing in value, the dollar is decreasing in value.

Also why oil is "going up".

bishop · Apr 19, 2006, 01:35 pm

yeah.. precious metal prices are definitely being driven almost entirely by oil concerns.. the volatility of the increases don't matter all that much to me though, because their prices have been extremely volatile historically speaking.

precious metals traditionally respond to interest rates - they appreciate when rates are low and vice versa.. that said, i think that oil has become just as important (if not more) than interest rates in recent years - so we could see metals continue to rise despite higher interest rates (which are still low by historical standards).

the issue is that the world's producers are drilling the stuff as fast as they can, meaning that there's scant excess capacity. when you have potential disturbances in places like venezuela, nigeria, iran (and iraq), you begin to see panic/heavy concern set in and prices start bouncing up. and hopefully we don't have many bad hurricanes this summer, because prices are already where they were after katrina hit.

also, some of the forecasts that i've read estimate that oil could easily hit $100/barrell by the end of the year. and with current growth rates in china and india, oil WILL hit $100/barrell sometime in the next 5 years. china in particular can easily afford more expensive oil thanks to its vast cash reserves - but can american consumers (whose real wages have been in decline for the past 5 years)?

jose · Apr 19, 2006, 01:36 pm

Quote:

Quote by: tman_ndsu08

Gold is not increasing in value, the dollar is decreasing in value.

Also why oil is "going up".

Gold iseems to be rising in ALL currency´s

bishop · Apr 19, 2006, 01:50 pm

both arguments are true - it all depends on what perspective you choose to use..

gold is rising from a currency perspective.
currencies are falling from a gold perspective.

debates revolving around perspectives like these are kind of meaningless imo... much more interesting to talk about why the prices/values are changing.

tman_ndsu08 · Apr 19, 2006, 02:13 pm

Quote:

Quote by: bishop

much more interesting to talk about why the prices/values are changing.

Because someone agreed to buy gold for 70 dollars more per oz. than a guy before him...

jose · Apr 19, 2006, 02:16 pm

Maybe some people see a looming war and a global depression on the horizon

bishop · Apr 19, 2006, 02:39 pm

some good charts here...

Apr 19, 2006, 12:03 pm	#1 (permalink) (top)
jose Volcanic Erupter Location: España Posts: 2,514	gold and silver prices Has anyone else noted the rapid price rise in precious metal in the last month? gold is up $70 an ounce, and silver has shot up 40% this month alone, i wonder why http://www.kitco.com/market/

Apr 19, 2006, 01:35 pm	#4 (permalink) (top)
bishop moderat-e/o-r Location: boston Posts: 11,184	yeah.. precious metal prices are definitely being driven almost entirely by oil concerns.. the volatility of the increases don't matter all that much to me though, because their prices have been extremely volatile historically speaking. precious metals traditionally respond to interest rates - they appreciate when rates are low and vice versa.. that said, i think that oil has become just as important (if not more) than interest rates in recent years - so we could see metals continue to rise despite higher interest rates (which are still low by historical standards). the issue is that the world's producers are drilling the stuff as fast as they can, meaning that there's scant excess capacity. when you have potential disturbances in places like venezuela, nigeria, iran (and iraq), you begin to see panic/heavy concern set in and prices start bouncing up. and hopefully we don't have many bad hurricanes this summer, because prices are already where they were after katrina hit. also, some of the forecasts that i've read estimate that oil could easily hit $100/barrell by the end of the year. and with current growth rates in china and india, oil WILL hit $100/barrell sometime in the next 5 years. china in particular can easily afford more expensive oil thanks to its vast cash reserves - but can american consumers (whose real wages have been in decline for the past 5 years)? hope for america... http://www.ronpaul2008.com/

Apr 19, 2006, 01:50 pm	#6 (permalink) (top)
bishop moderat-e/o-r Location: boston Posts: 11,184	both arguments are true - it all depends on what perspective you choose to use.. gold is rising from a currency perspective. currencies are falling from a gold perspective. debates revolving around perspectives like these are kind of meaningless imo... much more interesting to talk about why the prices/values are changing. hope for america... http://www.ronpaul2008.com/

Apr 19, 2006, 02:39 pm	#9 (permalink) (top)
bishop moderat-e/o-r Location: boston Posts: 11,184	some good charts here... hope for america... http://www.ronpaul2008.com/

Apr 19, 2006, 01:33 pm	#3 (permalink) (top)
tman_ndsu08 BANNED Posts: 5,021	Gold is not increasing in value, the dollar is decreasing in value. Also why oil is "going up".

Apr 19, 2006, 02:16 pm	#8 (permalink) (top)
jose Volcanic Erupter Location: España Posts: 2,514	Maybe some people see a looming war and a global depression on the horizon