Wednesday, April 20, 2011

News From The Obamaphate: Gold Crests $1500/OzT

Today, April 20th, 2011 gold crossed the psychological resistance barrier of $1500 per Troy Ounce. Will it stay there? Who knows...

What is certain is that worldwide governments and people who still have enough money to buy the shiny stuff have voted with their feet to abandon more conventional investments for the perceived safe harbor of gold as BOTUS and his giddy Ivy League minions fiddle while Washington burns out the motors and electronics of its money printing machines.


From as of today 10:24:39 Hrs at New York


  1. Nobody trusts the system.

    And who can blame them? The US continues to act irresponsibly, Congress shows small resolve to change the trend and the President flip flops like a pancake on a hot griddle. AND the world looks at the US for trend setting information.

    So gold makes sense even at that astronomic price.

  2. Here's a slightly paranoid thought, can the lefties, at some future point, cause the price of gold to collapse?

  3. @ LL: Oddly enough, gold is still cheap in inflation adjusted dollars. The last big price peak in 1980 (Jimmi Cahtah dayz) was $850/OzT. In 2010 dollars that would have been $2,251/OzT. We are far more thoroughly screwed today - debt and spending wise - than we were under the thoroughly incompetent Carter. Who knows where gold could top out. Some are saying they wouldn't be shocked by $3,500 and beyond.

  4. @ Matt:

    I'm just a dumb lawyer, and not one of Obama's Goldman Sucks Massahs, so maybe they have more sophisticated tools akin to credit default swaps and such to crash the price of PM's than I can possibly imagine. That said, I can only think of two ways.

    1) Cut government spending across the board to 1997 levels AND stop printing money AND raise interest rates. This will of course never happen under this regime dedicated as it is to Keynesian fantasy.

    2) Confiscate PMs a la FDR. Enforcement of course would be horribly impractical if not effectively impossible without killing a quite a goodly number of people in the seizure process.

    By the way, just read today on the internet - the site eludes me now - that a very large put has been placed on a silver price collapse come Fall 2011. Could be a for real bet on the market, or a PsyOp move by an Obamaphate friendly entity trying to cool down the ever escalating price of silver.