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Gold still aiming at $1,000 an ounce - but when?
November 3. 2006 (Myra P. Saefong - MarketWatch)
The conclusion is mirrored in the conclusion of this article, "The dollar's full-system meltdown" by Mike Whitney:
November 3. 2006 (Myra P. Saefong - MarketWatch)
For the tough gold traders who've stuck it out, it's been there, done that and earned that, lost that -- many times over, all year long. What to do next is the question.
Gold futures climbed to a 26-year high above $700 an ounce back in May and haven't traded anywhere near that level since.
When gold traded near $728 in May, "there was a lot of excitement," prompting scenarios of $1,000 gold prices -- even $2,000 and higher, said Steven Jon Kaplan, a senior editor at TrueContrarian.com.
"Since then, a worldwide economic slowdown has begun [and] the anticipated increase in demand for commodities has therefore been reduced," he said.
Now prices are beginning to show some signs of life again as uncertainty surrounds nuclear activities in North Korea and Iran, and the U.S. accuses Syria of planning to topple the Lebanese government. The U.S. dollar is also losing value and experts bet on further weakness in the currency. Some analysts say the slowdown in economic growth has spurred buying in gold as an alternative investment.
[snip]
"The strongest reason to own gold right now is the fact that we have three U.S. aircraft carriers with task forces parked opposite Iranian shores," said Ralph Preston III, an account executive at San Diego-based Heritage West Financial Inc.
And Saudi Arabia has put its entire navy and special forces units in defensive position around the world's largest oil terminal, Ras Tanura, said Preston. News reports last week said there were threats of a possible al-Qaida attack on Persian Gulf oil terminals.
"This is an unusually high concentration of military build up on the part of the United States in the Persian Gulf," he said.
AntiSpin: So you're not caught by the surprise jump in gold prices, The Jerusalem Post reports today, "The successful launch of three new models of sea missiles is the Gulf should send a strong message to the US to cease military maneuvers in the region, an Iranian navy chief said Friday."Gold futures climbed to a 26-year high above $700 an ounce back in May and haven't traded anywhere near that level since.
When gold traded near $728 in May, "there was a lot of excitement," prompting scenarios of $1,000 gold prices -- even $2,000 and higher, said Steven Jon Kaplan, a senior editor at TrueContrarian.com.
"Since then, a worldwide economic slowdown has begun [and] the anticipated increase in demand for commodities has therefore been reduced," he said.
Now prices are beginning to show some signs of life again as uncertainty surrounds nuclear activities in North Korea and Iran, and the U.S. accuses Syria of planning to topple the Lebanese government. The U.S. dollar is also losing value and experts bet on further weakness in the currency. Some analysts say the slowdown in economic growth has spurred buying in gold as an alternative investment.
[snip]
"The strongest reason to own gold right now is the fact that we have three U.S. aircraft carriers with task forces parked opposite Iranian shores," said Ralph Preston III, an account executive at San Diego-based Heritage West Financial Inc.
And Saudi Arabia has put its entire navy and special forces units in defensive position around the world's largest oil terminal, Ras Tanura, said Preston. News reports last week said there were threats of a possible al-Qaida attack on Persian Gulf oil terminals.
"This is an unusually high concentration of military build up on the part of the United States in the Persian Gulf," he said.
"Our enemies should keep their hostility off the Persian Gulf," said Adm. Sardar Fadavi, the deputy navy chief of the elite Revolutionary Guard, hours after his troops tested the new missiles in Gulf.
"They should not initiate any move that would make the region tense," he said of the US.
China's state run China View declared:"They should not initiate any move that would make the region tense," he said of the US.
An Iranian deputy navy chief said on Friday that the Iranian army launched three new missiles earlier during their ongoing military maneuver was a strong message for the United States to cease its military drills in the Gulf region."
China's state run People's Daily reported: Iran's Revolutionary Guards test fired three new models of missiles in the ongoing military exercises in the Gulf region, the state-run television reported on Friday.
The television footage showed the missiles were fired from mobile launching carriers on the shore and from warships, and the missiles hit the targets successfully.
According to the report, the new types of missiles, dubbed Nasr, Noor and Kowsar, had been extended of their range and now could cover a range of 170 km.
The missiles are made by Iran itself and could be used in land- to-sea or sea-to-sea warfare, and due to the extension of their range, the missiles are able to hit all potential targets anywhere in the Gulf region and in the sea of Oman, said the report.
"The missiles are suitable to cover all the Strait of Hormuz, the Gulf and the sea of Oman," said Admiral Sardar Fadavi, the deputy navy chief of the Revolutionary Guards.
Iran started a new round of military maneuvers Thursday, during which the Revolutionary Guards also test fired ballistic Shahab-3 missiles with a range of more than 2,000 km.
Major General Seyed Yahya Rahim Safavi, commander-in-chief of the Revolution Guards, said on Wednesday that the 10-day military maneuvers, dubbed "The Great Prophet 2," would be carried out in the Gulf waters, the sea of Oman and 14 provinces of the country.
CBS News reported (my emphasis):The television footage showed the missiles were fired from mobile launching carriers on the shore and from warships, and the missiles hit the targets successfully.
According to the report, the new types of missiles, dubbed Nasr, Noor and Kowsar, had been extended of their range and now could cover a range of 170 km.
The missiles are made by Iran itself and could be used in land- to-sea or sea-to-sea warfare, and due to the extension of their range, the missiles are able to hit all potential targets anywhere in the Gulf region and in the sea of Oman, said the report.
"The missiles are suitable to cover all the Strait of Hormuz, the Gulf and the sea of Oman," said Admiral Sardar Fadavi, the deputy navy chief of the Revolutionary Guards.
Iran started a new round of military maneuvers Thursday, during which the Revolutionary Guards also test fired ballistic Shahab-3 missiles with a range of more than 2,000 km.
Major General Seyed Yahya Rahim Safavi, commander-in-chief of the Revolution Guards, said on Wednesday that the 10-day military maneuvers, dubbed "The Great Prophet 2," would be carried out in the Gulf waters, the sea of Oman and 14 provinces of the country.
The Revolutionary Guards began maneuvers on Thursday, shortly after a U.S.-led military exercise in the Gulf. Iran test-fired dozens of missiles, including the Shahab-3 that can reach Israel, in military maneuvers that it said were aimed at putting a stop to the role of world powers in the Gulf region.
See "The Coming End of the US Foreign Investment Bubble: What if we lose?" from earllier this year.The conclusion is mirrored in the conclusion of this article, "The dollar's full-system meltdown" by Mike Whitney:
As long as oil is denominated in dollars, the central banks will be forced to stockpile American scrip regardless of its value. It’s no different than holding a gun to someone’s head. They will use our debt-plagued greenbacks or their cars and trucks will sputter, their tractors and factories will wheeze, and their economies will grind to a halt. It’s just that simple.:p> :p>
America cannot maintain its superpower status unless it continues to control the global economic system. That means the linkage between the dollar and oil must be preserved. The Bush troupe sees this as an existential issue upon which the future of America’s ruling class depends. By 2020, 60 percent of the world’s oil will come from the Middle East. Bush will do everything in his power to control the resources of the Caspian Basin, thereby expanding US dollar-hegemony and paving the way for a new American century.
America cannot maintain its superpower status unless it continues to control the global economic system. That means the linkage between the dollar and oil must be preserved. The Bush troupe sees this as an existential issue upon which the future of America’s ruling class depends. By 2020, 60 percent of the world’s oil will come from the Middle East. Bush will do everything in his power to control the resources of the Caspian Basin, thereby expanding US dollar-hegemony and paving the way for a new American century.
, of the scope of the first gulf war, sans invasion 
So sad
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