Today I’m writing about the real Global Positioning System - The Price of Gold.
Yesterday a lot of people seen an historic moment in time - headlines of the price of gold blasted through whatever medium they could find to get the information out to the general public - GOLD HAS TRADED @ $1,000 USD.
For precious metal investors and mining this is really great news, a psychological barrier has been passed into history and nobody really knows where we are going from here.
Gold achieving this price really should signify a very bad day for most people - it means our systems and governments are failing and that there is nowhere to run for security. We’re not looking for gains at this point - nobody knows which bank, investment or market will give them the security of at least having the same amount of money tomorrow.
That was yesterday! Today gold has easily flirted with the $1,000 mark again and at around 11am New York time the ask price for gold was $1,008 an ounce! It looks like gold is going to take a run at the money for the next little while until someone puts some control to it.
The big picture shows that there’s not much around to ease the general fear that there’s no market stability - we are still dealing with the Iraq War, the lending markets are screwed, oil is on the rise, Bush is still in power and there’s only Obama or Clinton nobody that’s any good to replace him. We are in a really sad state of affairs!
Being friday and all we can probably expect to see the price of gold close at just under $1,000 but that’s only going to be for the weekend. This beautiful yellow metal needs some beauty sleep after a hard week in the market. Come monday the market will open and gold will likely rise - not looking back at what was once a barrier, a wall, an indicator that the world is going through some really tough times. This is a new place for gold and I think it will want to stick around and look at the scenery for awhile.
UPDATE: At the end of the New York Trading Day gold enters the weekend at: $1002.50 and up $7.40 since the previous days’ close.
If you’re ever looking for a Global Positioning System in the sense of “The State of Affairs of the World” then the price of gold is always a pretty good indicator of what is going on.
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