The Price Of Gold

Yesterday I posted here on gold, silver and possible ways to make a quick buck, known not entirely without reason as "making a killing." I used some humor and sarcasm, which didn't really work, but the points I made are consistent with past postings on these topics.

The Wall Street Journal has even less of a sense of humor than I do. In The WSJ today they say that gold is edging past $1038 an ounce and in the speculative market it is hitting a high of something just over $1043 an ounce. Predictions of gold hitting $1100 an ounce are still there, but these predictions are being downgraded to $1050. Watch for another predicted drop.

None of this would be an issue or of interest were it not for those annoying radio ads telling us to buy gold now and the working people taking the advice. A pawn shop near my job posts new gold prices weekly. It looks more like a scam every day, and especially so with so many speculators in the market and the projected high prices being downgraded.

Working class people might be better served by buying lots and lots of new tires for resale. The profit margin on tires for new cars looks like a better bet than gold right now, and most of us know what we're doing with tires anyway.

Gold is advancing at the expense of the dollar. If wrecking an international currency is your thing, buy up all the gold that you can. Notice that the radio deejay patriots are urging you to buy gold regardless of what it does to the US economy. Limbaugh has apparently taken his money and invested it in gold and football. His speculating in gold and his investing in non-productive economic ventures should cast great doubt on his patriotism.

Right in line with yesterday's posting here, the Mongolian government announced a copper and gold mining deal with Ivanhoe Mines and Rio Tinto. The lack of environmental regulation in Mongolia and the willingness of the government to help pave the way forward for the two inter-related multinationals have been cited as the final deal makers. The new mine will hit full capacity in 2018 and will last into the 2060s. In the meantime, says Rio Tinto, there will be "far-reaching benefits for employees and communities directly linked to the mine..."