Why is gold trading at record levels? Look to India for the answer

its quite simple, gold is the universal currency. no matter what happens and when gold can be exchanged for money or other goods/services

and lets face it, the US just pumped waaay to much money into the economy and that will send inflation soaring.

Buying gold right now is an absolutely horrible move unless you're going short term. It is at record highs, and once it starts dipping, it most likely won't go this far back up for decades.

I said months ago that I think it will hit 1200, but I also believe that this is the top of the range and it will return to a lower level thereafter. Anyone buying now is probably doing so near top dollar.

India may be jumping the gun as the Lisbon accord/treaty is now a fact. This little change will make the EU look more like the U.S. and will greatly effect how the member states (countries) interact. Rumor has it that Tony Blair may be the first president.
Should prove interesting. Watch the Euro/dollar/yen/pound for the balance of the week. If there is a sore spot out there the currency market is it and if it gets too far out of balance there will be more trouble ahead.

Gold isn't trading at record levels. It's trading at 25 or 30 year highs. In general gold is a bad investment.

My take on it is that if you think the economy is in bad enough shape that you've decided to give up on stocks and currency and invest in gold, then you better:

1) purchase a gun collection with that gold so you can protect it after the major governments fail

2) take delivery of the gold rather than holding certificates

I'm not that worried, so I'll keep my money in the market. History does have a way of repeating itself. How did things work out for people who bought gold for an inflation adjusted price of $2500 per ounce back in 1980?

No matter how many people proclaim how many times that we have reached the "end of history" and declaim the death of gold, in times of great international stress that's what governments who are still in the game seek to acquire; in the worst case scenario -- large-scale warfare between two states or among a variety -- fiat currency will prove inefficacious: "Uh, sir? Your country might not even exist tomorrow ... and your US dollars, well ... we'll take gold if you don't mind ... "

Thing about history is that (drum roll) it's cyclical, which is a tiresome cliche until the cycle you presently occupy ends and a new cycle from the past kicks in; a past you laughed at yesterday as unlikely ever again to rear its unstylish head: Bernice will bob her hair again, sooner or later ... if you catch my drift.

War is in the air, be it hot or cold or of the trade variety, and Asian nations, at least, are lining their war-chests in time-honored fashion -- with gold.

The problems of the small-scale investor at such times are, really, of very little moment.

Hey Chris, How are those "inflation adjusted 1980 dollars working out for you? LMAO!

It is not at record highs if adjusted for inflation. The world has changed in the last couple of years. Gold may be the safest and most lucrative investment you can make. Don't forget about silver either. Might even be better.

Obama's economic policies are the biggest threat to our national security that we have ever faced as a nation. The division of the people combined with the falling dollar creates the probable outcome of collapse and anarchy. This is a crime that needs to be addressed. It is obvious that this is the agenda and between Obama himself and his associates there is enough taped statements wherein they state that there intent is to destroy the constitution and remake America in there own way. If that's not a crime then what the hell is?

You all can buy all the gold and sliver you want. I am investing in survival skills, like planting my own food, fishing, hunting and building. I think I might buy a couple of cows, a horse and some live chickens and raise them in my back yard.

With all the greed in this world, soon the whole world is going to be a third world country and I better be prepared for world hunger and starvation.

Yes, History repeats itself (if you live long enough).

I'm all in gold and silver. Started buying gold at $429 after closing out my 401K and IRA. Time will tell who is right. I've been happy so far and think there's 3 years to go in the run up. I expect $1800-$2000 a coin. Hope I'm right.

FDR's greatest economic accomplishment was having the world shift from the gold index to the dollar. This is what established the largest middle-class in the world's history. It took G.W. Bush eight years to change that. The sky-rocketing fuel costs, the wars, and most importantly the diminished American gravitas that had welcomed many investors. Mind you Obama has been in office this past year, and has pushed social programs that have spurred the deficit but in an attempt to improve the American economy. The only true way for America and its dollar to ever come out of this downward spiral is technological innovation in ENERGY and food production.

This is what happens when politicians spend money we don't have to buy votes....so they can spend more money we don't have to buy more votes. The people who vote for them don't care about the future...just that "free" money (or "free" health care) that they think they are going to get right NOW. They will be the first to bitch (and look for more help) when it all implodes. This country USED to be the richest in history....and politicians used that line to "sell" more spending we couldn't afford. Now we are the world's largest DEBTOR country....and now Rev. Wright's words may actually make sense: "America's (financial) chickens are coming home...to roost". How's that "hope" and "change" working out for you now???

people area idiot Gold no place in provide food or even the use of gold in industries is miniman compare to other metals .
It is the stupidity of human nature repeat history or follow blindly for god sake you can't even eat with gold . the believe in gold value is history of self perpetualtion by it rare quantity. I don't think gold have any value ,if not because of speculator in the market try to cook up the idea . the asia country still believe in chasing for the shinny metal

The balancing of the budget will not happen because politicians, like drug addicts, will have to have another "fix" in order to fulfill their promises to the beneficiaries of their choice. The end result will be economic ruin, brought on by deliberate policy actions to increase the nations money supply. A note "money" is nothing more than an IOU. If foreigners stop financing our budget and trade deficits and we have to raise interest rates to keep the dollar from collapsing, then the interest on the federal debt will soon exceed the annual personal income tax revenues, thus print more money to pay its bills. Read the signs!!! and hang on for a wild ride.

what we are talking about here is "which commodity has true, long-lasting value?" What we, as consumers ought to be more concerned about is, 'what will bring us together as a nation?" Without solidarity, we will fail. (or continue to decline). Remember, "divide and conquer?" Focusing on assigning an economic value to currency or commodities before rebuilding a foundation of security (food, infrastructure, government, emergency preparedness) seems to be like putting the cart before the horse. Forget greed, for the moment, and reach out to your neibor, community and political representatives NOW! Focus on the circle of influence, THEN the circle of concern. Strength and honor!

I agree Steve, listen I love this nation, I spent 20yrs. as a vanguard of its freedoms, but lets face it, Gold is money, and money is gold, its been this way since the dawn of mankind. In 1933 F.D. Roosevelt stole the citizen's gold under Ex. Order #6102 by having them surrender their gold to the Federal Reserve who, in return, gave them worthless IOU's for their gold. I did not have the space to put all of this on my first statement, I will take Gold or silver over any current currencies, why, because we are too far down the river to run ashore now. No fault to you or me. God Bless.

Listen any idiot buys Gold, believes Sarah Palin is going to be the President. What good is Gold? Trades and puts? You can't take it to the store and buy anything with in, nobody will except it as currency. So what good is it?

I HOPE PEOPLE REMEMBER THE 70' AND 80'S. MORTGAGE
RATES WERE AROUND 21% AND INFLATION WAS RUNNING
10% OR MORE PER YEAR. WHEN THE PRINTING PRESSES
RUN AND DEMAND SLOWS THAN INTEREST RATES GO
NORTH. INFLATION FOLLOWS. FOR THOSE HOLDING
CREDIT CARDS TIED TO PRIME ITS TIME TO GET RID OF
THEM.

talking with a retired stockbroker he told me to buy gold and silver a month ago. i could have made $100 an ounce on the gold. he believes gold will reach $1500 early next year. as for natural gas, that is a good investment, monthly dividends. so i guess i will see my financial investment firm and break their heart with the bad news of a large withdrawal this week (not all but alot). the dollar is collapsing and will never be the same.