Did gold skyrocket to $710/oz today?

[Deja Q]

Last week it was at $680/oz...

[DBoon]

1. gold didn't go up

the dollar dropped

[Mira]

3. In mid morning it went up to 710 and held briefly - now 687

[DBoon]

6. or you could say

in mid morning the dollar was down to 1/710 oz of gold, and then went up to 1/687 oz

I don't think gold has become scarcer, or that some new use has been found for gold that makes it worth more.

I think people have figured out the dollar is worth less.

[lonestarnot]

2. No last week it was $760/oz.

[OldLeftieLawyer]

4. It WAS?

I am currently trading jewelry for gas at the local station.

So far, it's working out very nicely.

It really was up that high?

Oh, man ...................

[lonestarnot]

5. Yes that is what I think I heard or read.

[tocqueville]

7. this chart says it all

http://finance.yahoo.com/q/bc?t=5y&s=GOLD&l=on&z=m&q=l&c=&c=%5EGSPC&c=%5EIXIC&c=%5EDJI

Gold has increased 600% since 2003

notice the sharp increase since the Iraq war was in the startings

[greekspeak]

8. My understanding is that gold and diamonds & other precious comodities

are not really all that rare. The markets for the materials are so tightly controlled by the corporations who deal in the commodities that the prices remain exceptionally and artificially high.

[ComerPerro]

9. RW talk radio has been pushing sheep to invest in gold

probably so they can let the prices get inflated from all the sheep rushing to buy, then dump everything just before it starts to tank.

[pitohui]

10. yep everything old is new again EOM

.

[teryang]

11. the banks want the sheep to accept 4 percent interest on paper

...currency that is becoming worth less every month. The currency imbalances caused by unprecented US debt and current account deficits are going to force a serious devaluation of the dollar. It has been ongoing for some time, gold, oil and other commodities have gone up very substantially and it is likely that they will continue to go up after occasional sharp corrections caused by highly capitalized short sellers trying to cover their short contracts that are already in the red big time.

The federal reserve is just churning out the paper and resorting to other non-transparent schemes to prevent the dollar from going into free fall, such as purchasing their own debt at auction through offshore accounts.

There are only two options, continuing rising interest rates which will cause a recession and exacerbate the American debt crisis or allow the inflation to continue to reduce the burden of commitments such as pension payouts, government debt, social security obligations and so on. Right now they are doing both and can't choose an option. Hence volatility in the markets. The policy of high interest rates and pumping out the fiat currency simultaneously brings stagflation.

I guess the "free traders" shouldn't have exported American manufacturing capital overseas. They also might have considered adapting to new market conditions instead of continuing to pour the national wealth into the super wasteful and non-productive (to say the least) military and industrial complex. The most powerful country on earth isn't looking too strong these days. If anything it looks desperate. All the talk about the 21st Century is an old rehash of cold war policies dressed in the "war on terror" "WMD" clothing, no longer backed by industrial and financial might.

Good luck to all.