How does gold affect everything?

[RealMoneyIssues]

Or does everything affect gold prices?

Gold in record territory, pushes past $1,453

http://www.marketwatch.com/story/gold-silver-waver-between-small-gains-and-losses-2011-04-05-959420

Just curious.

 

[dpmp]

Or was it the dollar that affects gold price? :cheesy: Might be best to watch gold price in other currency to see how it fares.

Of course, part of the PM volatility was due to speculation but the recent decline was due to margin requirement and not by speculation.

 

[tsptalk]

Or was it the dollar that affects gold price? :cheesy:

Probably true. There's a lot of folks fearing inflation and even hyperinflation.

 

[Boghie]

I think we are far closer to mild deflation rather than inflation.

The FED has pumped gobs of money into the system and big items are still declining in price. Weird, very weird..

 

[konakathy]

I hope gold and silver goes up at least until the end of 2011. I bought gold & silver coins in 2005 and have made a nice little profit, so far. I sometimes get nervous about when to sell. My gut is telling me soon.

 

[tsptalk]

I bought gold & silver coins in 2005 and have made a nice little profit, so far.

That's the understatement of the year. Congrats!

 

[Show-me]

Gold does not affect anything because it is not a industrial metal. Gold is a safe haven for savers and investor's. The price is reflected by 1. the value of your currency, 2. the desire of people to hold it for security and inflation protection, or in other words, demand, and 3. market manipulation from ETF's and margin accounts. In other words dollar and personal demand.

Silver is the ugly sister that is being pulled up because the gold market is getting too pricey for us serfs.

Demand is way up because of personal ownership in China and India. They are hedging big time because they do not trust anyone with their fiat money. The Japanese have always been big savers and they like gold too.

Silver is back up almost 15% from the sell off lows. As the ETF's dump their physical metal into the market, someone is buying it up. That should tell you something about, at the very least, the psychology of the market.:notrust:

 

[Silverbird]

Gold does have certain specialty uses (electronics primarily) that get messed around every time the price goes up. So it might not be an industrial metal, but it's pricing can ripple into things other than jewelery.

IMNSHO it's Gold is affected by everything, not gold affects everything. Gold is the investment and banking basis for Middle Eastern countries. For the West, gold is the investment of fear when the world/US economy just doesn't look like a good investment, or worse is going South. Also it's a beautiful thing to play the high-roller investing game with.