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Gold Beats Financial Assets as Global Distrust of Central Bankers (Bloomberg)



March 03, 2008 – Comments (6) | RELATED TICKERS: GLD , SLV , PALDF

Gold Beats Financial Assets as Investors Seek Haven

Bloomberg reports 03 March 08: 

*Gold, silver, platinum and palladium may be the best-performing financial assets this year as inflation and slowing growth erode the value of the world's major currencies, bonds and stocks.

* Precious metals have risen at least twice as fast as the euro and yen in 2008 and returned six to 20 times as much as U.S. Treasuries. The Standard & Poor's 500 Index and all other major gauges of equities are down. Gold for immediate delivery reached an all-time high of $984.95 an ounce today, while silver traded at $20.19, the most expensive since 1980.

* Investors are using metals to preserve their buying power as the U.S. dollar falls to a record and inflation accelerates. Gold, platinum and palladium may gain at least 30 percent this year as Federal Reserve Chairman Ben S. Bernanke prioritizes cutting interest rates over controlling consumer prices

* Gold rose 36 percent since Sept. 18, when Bernanke made the first of five cuts to the target rate for overnight loans between banks in order to stave off a U.S. recession. It's up 15 percent since breaking the 1980 record in January, and may rise to $1,300 an ounce by yearend, Goodis said.

* Platinum and palladium -- sister metals used to make jewelry, catalytic converters for cars, and dental crowns and bridges -- have advanced even more this year.

* Platinum futures in New York gained 42 percent and touched a record $2,214.50 an ounce  year.

* Palladium will probably reach $750 an ounce by June, a 29 percent gain from the current price, he said.

* Silver will advance to $25 an ounce sometime this year, estimated David Davis, an analyst at Credit Suisse Standard Securities in Johannesburg.

* Bernanke lowered rates faster than any Fed chairman since 1982, and inflation in 2007 jumped 4.1 percent, the most in 17 years. U.S. housing starts in December fell to the lowest level since 1991, and fallout from the collapse of the U.S. subprime mortgage market has triggered about $181 billion in writedowns and credit losses at the world's largest financial firms.

* At least 95 percent of the new buyers have kept their money in the bullion, Mark O'Byrne, Gold & Silver's executive director, said in an interview on Feb. 26.

``They were very, very nervous and wanted security,'' O'Byrne said. ``Some were putting their entire savings into gold. They were that nervous.''

6 Comments – Post Your Own

#1) On March 03, 2008 at 6:51 AM, abitare (29.95) wrote:

Gold and silver may go higher, but usually this level of press and public enthusiasm makes me want to get out of gold. How many info-mercials were talking about buying real estate in 03-06? Now there is constant commercials showing how to buy gold and silver...
tough to argue with this chart:


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#2) On March 03, 2008 at 7:53 AM, ATWDLimited (< 20) wrote:

All aboard the gold/silver/platinum train. While the market has been in chaos, flounderingprecious metals have surged, hedged inflation and the instability. I own about 20K of my 135K portfolio directly in those markets, in the forms of bullion. Also I sold assets in the market and loaded up Jan 22, the lowest point of the dip, adn have rode the wave of minning stocks up 20% and energy up 12%. In times of market madness, raw materials have long outpreformed.

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#3) On March 03, 2008 at 8:19 AM, abitare (29.95) wrote:

Bloomberg has a good video with Dennis Gartman on gold  on

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#4) On March 03, 2008 at 5:25 PM, lquadland10 (< 20) wrote:

Hey aba, How are you ? I love gold. I bought it sold it and if the dollar tanks then I will sell more on the way up. Hey I have a plan. In Texas I am a registered dem. so here is my game plan. I am writing in Ron Paul and on the two step I will write him in again. Do you know of any dems or independents that want to do the same thing? My peacefull vote will be heard and if any one else wants to do the same come along with me. Plus the added fact that If his name shows up in a demacratic election he will recieve more media attention. Can we do that in Ohio? Just a thought. Let me know what you think.

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#5) On March 03, 2008 at 7:54 PM, abitare (29.95) wrote:


Doing well, good to hear form you.  I like Paul and I like gold. I do think it will go much higher. But I believe there is still a lot of leverage being used on gold and oil on the run up. I would rather have $30k-100k bullion in a bank safe or home safe. 

I like Paul. I would not care for any of the other cannidates.  

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#6) On March 04, 2008 at 6:32 PM, lquadland10 (< 20) wrote:

Good to see you doing well. As the dollar drops gold will go higher and when he raises rates then it will drop. More rights taken away and why am I surprised? I guess it is because I believe that good will win out over evil. Did you know in Texas as a dem. I can't do a write in for Paul? I had to cross party lines and go rep. to vote for him which means now I can't vote for the dems or independents in my party. I have resined myself to the fact that I now live in Russia. One person one vote and no electoral collage. Let us vote for who I want.

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