Gold tops $900 an ounce

[Lone_Star_Dem]

Source: CNNMoney

NEW YORK (AP) -- Gold futures rose above $900 an ounce for the first time Friday, as high oil prices, a weak dollar and fears of a U.S. recession led uneasy investors to keep buying the precious metal.

An ounce of gold for February delivery on the New York Mercantile Exchange jumped $6.50 to $900.1 in morning trading, an all-time high and a psychologically important milestone. Gold later slipped to $898.70 an ounce but remained in record territory.

"It's a reflection of market sentiment: Gold is a hedge against uncertainty and right now it's the best bet," said Carlos Sanchez, a precious metals analyst at CPM Group in New York. "None of the other investment options look that great and gold does."

Still, when adjusted for inflation, gold remains well below its all-time high. An ounce of gold at $875 in 1980 would be worth $2,115 to $2,200 today.

Read more: http://money.cnn.com/2008/01/11/markets/bc.apfn.goldat.ap/index.htm?postversion=2008011111

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This caught my eye for two reasons.

1) People are scared of what's going on with the US economy.

2) Why when the Stock Market has a record high do they not show its figures adjusted for inflation?

[Tempest]

1. When they give the adjusted for inflation figures, it's meaningless

People are buying gold in today's dollars, not in 1980 dollars.

When using current accounting (which is the only relevent measure), gold is at a record.

I liquidated my stocks when gold was at $270 and bought up futures. I'm getting itchy to sell off, but I think gold will continue to climb steadily for least for another 8-12 months.