Friday, September 28, 2007

Good Old 1980

My late mother in law, bless her heart, was big into gold as an alternative to cash money. When gold started to return to "normal" levels I, rather hard heartedly, pointed out that all of the hard money economics were full of crap. I, of course, was speaking before I actually understood the problem. I dumped all of her gold investments when she passed away and Madam Monk(only child) got them all. I am such a financial wizard it takes one's breath away! BTW we are not talking chump change here.

Gold rose on Friday to the highest level since 1980 as the U.S. dollar scavenged new lows against the euro and oil prices headed near record territory.

Commodities were set to end the third quarter with substantial gains, despite a bumpy ride through August when concerns about the availability of credit roiled financial markets. Crude prices rose on Friday, while industrial metals and agriculture futures traded mixed.

Meanwhile, gold breached $750 an ounce as investors sought shelter in precious metals from the inflationary signs of rising oil prices and a weakening dollar. The dollar's decline against the euro has been precipitous this week, as the greenback has slid to a fresh low for seven straight trading days. On Friday, the European currency purchased a record $1.4207.

We have two obligatory weddings in the UK next year, April and September, if things on the exchange rate front don't improve it is going to be to mean very lean trips to the UK next year. One of the weddings is going to require a couple of nights in a hotel but the September one should be staying with the mother and father of the bride and basically free. Anyhow, the exchange rate is going to be very painful.

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