Why Is Gold At A $1000/Oz?
Today Gold hit an intraday price of $1005/ounce. While not a record, it’s definitely a historical moment, with this event occurring for only the sixth time in history.
We can only speculate as to why the run up to a $1000 so quick but some of the likely reasons are:
- The continued monetization of US debt and resulting devaluation of the dollar
- The ability for 1/6th of the world’s population (the Chinese) to now buy gold
- The Indian Wedding season is about to begin soon and this is when Indian’s start buying gold jewelery
- The Chinese government has been buying gold on the sly. Well maybe not so secretly. They even encouraging their citizens to buy silver and gold
- The Chinese government just agreed to buy $50 Billion of IMF Bonds denominated in SDR (Special Drawing Rights), a mixture of various currencies, which might be a signal that the US Dollar is losing its status as the world’s reserve currency
The only question is whether this rally can last. In the long term, the answer seems obvious, but the short term is anyone’s guess. However, I think $1000 gold is here to stay.
If you found this post helpful, consider donating to my coffee fund!- World Bank President: Time To Diversify Out Of The Dollar According to Robert Zoellick, World Bank President and former Goldman Sachs head and US Secretary of State, you shouldn't take the US Dollar's reserve currency status for granted. Swelling government deficits and the strength of emerging countries is weakening the demand for the dollar. Time to head for the exits?......
- The End of Cheap $1000 Gold? Todayâs guest post comes from Bruce, CEO of Superior Gold. Last year I wrote an article for Living Off Dividends & Passive Income outlining 10 reasons why gold would break $1000. It was a conservative estimate at the time, which was achieved later in the year. Since then the Dow......
-
Gold breaks $1,100: Does It Matter? Last week, gold prices briefly touched $1,100/oz before settling just under that number. Apparently the Indian government decided to sell US dollars and make a 200 ton gold purchase from the IMF, which created the spike in gold prices. Right now, the spot price for the yellow metal is $1,106.......
Related Websites
- Surfing on a Budget Sometimes surfing equipment and surfing apparel can be really expensive, making this a difficult hobby to simply jump into. This is especially true if you are unsure about whether or not you would like to continue surfing. Why should you pay an arm and a leg for equipment that you......
- Will Gold Break $1250 by 2011? I am not a fan of gold. For those who are, are you putting your money where your mouth is? Do you think gold will be over $1250 by the end of 2010? That's 'only' 21% higher than it is today. I'll pass along a secret, odds are 4 to......
- So Long Gold, Hello Silver? It appears that technical analysis could be telling us something that few in the gold market want to see. A head & shoulders pattern doesn't mean with 100% certainty that the price will fall, but with most of the precious metals "love" focusing on the silver market (e.g. poor......
[All content is copyright of Living Off Dividends & Passive Income]






![St-gaudens-gold-double-eagle-bullion-1oz-coin [St Gaudens Double Eagle 1 Oz Gold Coin]](http://livingoffdividends.com/wp-content/uploads/2009/09/St-gaudens-gold-double-eagle-bullion-1oz-coin-300x300.jpg)
Leave a Reply