Gold Hits Record High!
Gold just broke the previous intraday record and touched $1,043 per ounce. It’s currently trading around $1,038.
This spike may have been caused by a news report that appeared in the Independent today. It states that the Arab States in the Gulf have made secret plans with China, Russia, Brazil and France to stop using the US dollar for oil trading. While this isn’t immediate and it calls for a transition to occur by 2018, it seems to have set the stage for a pretty bad precedent – that gold will jump on these sort of rumors! Lets see if we get any official confirmation of this “news”.
So is this the beginning of the end for the US Dollar? I hope not, but I’m buying some silver and maybe some more gold, just to be safe!
If you found this post helpful, consider donating to my coffee fund!![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
-
When Is A Silver Dollar Worth $2.3 Million? Last week, an 1804 Adams-Carter Silver dollar sold at auction for a whopping $2.3 million. That's a pretty good amount for 1 ounce of silver worth about $12! There are only 15 such coins known to exist and they're quite popular. The buyer was New Jersey dealer John Albanese, who...... - Why Kiyosaki Is Buying Gold. Robert Kiyosaki has a column on why he's buying in gold. I don't know why it has tomorrow's date on it, but its pretty interesting nonetheless. Bet on Gold, Not on Funny Money by Robert KiyosakiTuesday, July 25, 2006 Gold recently dropped more than $100, or 14 percent, after hitting......
- 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?......
Related Websites
- What Is the World Reserve Currency? Also known simply as a reserve currency, or less frequently, an "anchor currency," the world reserve currency is more like a vehicle or container - like a 401(k) or RRSP - which can hold a certain currency inside. In other words, there is no essential or necessary world reserve currency. ......
- 1896 Silver Dollar Coins & Paper Money -> Coins: US -> Dollars An 1896 silver dollar is one of the Morgan dollars that were minted from 1868 to 1904, and then later again in 1921. The image on these coins was designed by George T. Morgan, and while his dollar is a collector......
- the gold rush of 2008 Is gold actually worth something? I know that it's over $1000 per ounce and it's a hot new speculative item. But in the true sense of "worth," does gold actually have any worth? Gold has been used since earliest human history as a form of currency. Gold's recognition as a......
[All content is copyright of Living Off Dividends & Passive Income]
October 6th, 2009 at 11:02 pm
good call on it. I remember back in December or some months back you were bullish on gold and we all doubted you. I have to say I am an idiot on that. Good call.
October 7th, 2009 at 4:37 pm
For future refrences, It’s called the Persian Gulf, not the Gulf.
October 10th, 2009 at 1:32 pm
How does gold fit in with your “living off dividends” philosophy?
And for the record, gold has lost ground against the dollar this year… the Australian dollar.
I own a bit of gold that I bought in February; it’s up something like 18% since that day. The very same day I took a large position in Australian dollars and used it to buy BHP Billiton shares directly on the Australian exchange (because ADR shares are a rip-off). The Australian dollar has gained around 41% against the US dollar since then– leaving gold in the dust. Oh, and the BHP Billiton shares are, in Australian dollar terms, up by around 21%, so multiply 1.41 x 1.21 and that’s around a 70.6% gain vs. the US dollar… and that’s before you even count the sustainable Australian-dollar dividend that BHP pays… and after all, I thought we’re trying to “live off dividends” here, no?
One more thing re: gold: I would suggest that the real issue in gold’s recent rise is simply that the USD is tanking. The recent news is that in nominal USD terms gold has reached a record high… but gold is actually 30% off its high against the AUD, and I think about 7-8% off its high vs. the Euro.
One can, indeed, hedge against USD weakness while outperforming gold and while staying true to the “living off dividends” philosophy.
October 25th, 2009 at 4:08 am
Hey there, hows your online income goin? Looking forward to reading another update.