Well, it’s exactly that. I am waiting.   Last week, we compared gold prices now, tottering between $1050 and $1060 per ounce, which sounds good initially, but in compared with the highs of the 1980’s, and adjusting for inflation, we see that actually is a pretty low price. 

Which ought to make one wonder why invest in gold?  Obviously, because the market makes you nervous and, when the dollar falls, gold is generally a safe haven.  But right now, the stock market is teeter-tottering up and down and the price of gold is following along.

Here’s what I mean: in 2009, the Dow Jones Industrial Average is up 14%.  Gold futures, meantime, seen as a safe haven and purchased by economic naysayers, are also up.  They are up 19%.  The reason for this: low interset rates and cheap money from the government stimulus package have poured into the financial markets, stabilizing the economy and cementing stock positions. 

The long-term net effect of creating all that money?  Not good.  Creating new money, together with the Fed’s maintaining near zero interest rates and the huge deficits that the U.S. is building will weaken the dollar, fuel inflation and cause untold economic hardship down the road.  Investors are pushing into gold to hedge against that future, but at the same time, the efforts of the government are stalling the losses that will undoubtedly be felt in the future because of the weakened American dollar.

Some experts are now predicting that $1000 per ounce is the new floor, and that the dollar will hit $1250 per ounce before the end of this year.  If you haven’t noticed, the year has only about two months left in it, and that, dear readers would be a hike indeed.

So no, I’m not ready to sell any of my gold yet.  If I were in “investing mode” personally, I think gold might be a likely candidate.   Buy on!

The price sounds good to the ear.  “Over $1000 per ounce!  Run, don’t walk to your jeweler now to trade your gold for cash!” Do you remember the excited voices gathering at the office watercooler?  But perhaps they sold out too soon.

Let’s consider that price with an eye to trading over the past several decades.  In the 1980, gold what was then a record high: $873 per ounce.  That may not sound like a lot, but consider that those were 1980 dollars.  Adjusted for inflation, that would equal a whopping $2287, according to the U.S. Department of Labor’s inflationary index.

Judged by those numbers, the new “record price” is still 53% below the 1980 price.  For that reason, many experienced traders and marketwatchers think the price of gold still has some “go” in it.

“Gold is not at any peak,” says Martin Murenbeeld, chief economist at DundeeWealth, Inc., (Toronto), which manages $58.5 billion in mutual funds and brokerage accounts.  “The world’s money supply has increased and gold hasn’t kept pace.”

Which means, there is plenty of room for gold to continue upward as investors continue to look for a hedge against inflation, instability and other losses in the markets.

In fact, some are predicting $2000 will be the new ceiling.

“Gold is the hedge against currency devaluation,” John Brynjolfsson of Armored World LLC said in a Bloomberg TV interview from Aliso Viejo, California on October 7.    He, along with many bankers, is raising his estimates.

Time to raise a little cash and invest yourself?  Perhaps.  Or maybe time to sell.

Personally, I am still feeling a bit chilled.   Unemployment levels have hit 20 year record levels, the market is still jittery and easily spooked, and in talking to those around me, I see unhappiness in their eyes.  The latest painful new number is that there are at least six applicants for every job available.  When you consider that some of those jobs are high paying and others extremely low paying, the chances of any applicant getting what they were accustomed to can seem very bleak.

But I am determined to feel better about the future of our economy. I see from various indicators that recovery is, indeed, underway in the United States and many parts of Asia.  The most developed countries in the Mideast are also well on their way to recovery.  The professionals who like to suggest what is ahead say that European nations are falling behind, but expected to eventually recover, too.

I’m finding this to be good news because even though I can still see the unhappiness of those affected by difficulties in their job track, I see that recovery is ahead.  The old saying “This too shall pass” has always been one of my favorites.   I hope we shall see some benefit from what we are currently going through and that, too, seems to be underway.

They say that Americans are cutting down their use of credit.  We are learning to pay for things as we go, instead of putting off our obligations.  We are learning to value the things that we have instead of constantly running out to buy the newest, latest, most flashy, most hyped items.

Gold is an investment of both real worth and emotional value as well.   So, is it time to buy or sell gold?  If you are looking to sell, this might be a good time to do that.   A true recovery (even a “jobless recovery”) has the potential to reassure investors about the U.S. dollar, which might influence the price of gold downward.  The price of gold could inch upwards a little more, but if recovery does take hold, it will likely start to slowly dwindle.

If you are going to buy gold jewelry for special occasions including the holiday season, this is an equally good time.  The price could still hike slightly, and currently jewelers like many other types of retailers are interested in moving their products.  Special prices, free shipping and other accommodations are more likely now than they are when the economy is on firmer footing.

I encourage you to look around at the “experts” on the economy and decide for yourself whether this is the moment for you to make a truly worthwhile investment in gold.

Two weeks ago, the price was at a peak: $1011 per ounce.  It was a heady time as one analyst predicted that the price “could go as high as $5000 per ounce” in the unsteady market.  I must admit, I reported that here in the gold prices section of the blog because I enjoy watching the wild swings of so-called “experts.”

Gold, as we’ve discussed many times here, is seen as a hedge against inflation and a stable shelter from a market that is unsteady.  It’s a place to put cash that will retain its value and in very uncertain times, even grow.  You can easily understand why its a point of heavy interest during an economic recession such as the one we have just experienced.

In the last month, the price jumped on news about the economy.  First the price seemed to ease back.  That was on reaction to the head of the Federal Reserve suggesting that the recession was over.  The markets seemed to lap that up like a cat with a saucer of milk.

Then the news about unemployment.  We seemed to be having a “jobless recovery.”  That is a situation where the American economy moves forward, begins to expand and grow again, but companies are producing more without calling employees back to work or making additional hires.  The Fed Chairman allowed that “jobs will lag behind,” but this time of “recovery” is discomfiting to most people watching the markets.  And the price of gold went up.

Now economic news seems to show some stability.  And the price softens just a little.

It does somewhat hit you where you live, if you live in a jewelry store.  Prices at ApplesofGold.com have held fairly steady through this.  But what if the price did spike again?  And what if it spiked more than a few dollars?

Apples of Gold prefers to hold its prices steady.  Like most merchants, we’d like to offer high quality product as reasonable prices and serve our customers needs and desires.  If the price of gold skyrockets, if it perhaps doubled, then yes, the prices would reflect that.  So while it’s enjoyable to report on speculative talk from imaginative “experts” on gold, we are glad to see the price trending downward again.

And we hope you are enjoying that view as well.

View Apples of Gold’s rates — payout rates are higher than most popular gold for cash companies and what differentiates Apples of Gold from other companies is transparency: we publish our rates clearly. We have nothing to hide.

View current gold for cash rates.

Apples of Gold Jewelry also requires no minimums. We pay the same great rate for small amounts of gold as for large.

We also offer a program by which you can elect to get store credit for your gold to put towards any new jewelry item from our store–or opt for cash, mailed within 1-2 business days of receipt of your gold, upon your approval of the appraised value.

And then it fell today.  That’s kind of what precious metals do, isn’t it?  It’s a bit more stable than dollars and the rest of the markets, but since the price of gold is tied very closely to strength in the dollars, it’s a little like watching the waves roll in and out, isn’t it?

So what is it reacting to this week?   Gold has lost ground as the dollar gained and oil prices fell slightly, causing the ground underneath the yellow metal to give way just a little.   Did you see that report of a huge find by oil developers in the Gulf of Mexico last week?  That’s part of it.  If a bunch of smaller countries in Africa would stop fighting internally, they might also produce more oil, which might drive the price of oil down further, strengthen the dollar further, and lower the price of gold.

“Gold is in a modest consolidation stage, as the dollar rebounded, ” says Hwang Il Doo, senior trader with KEB Futures in Seoul, Korea.

Modest, indeed.  The price lurched upward to $1011.95 on September 11, but had dropped back to $1002.92 to open the following week.

Of course, many investors think “anything over $1000 is a good price to sell.”  And yet others believe that as unstable as the markets have been for the past year, this is a great time to buy.  Who is offering such advice?  Some fairly big name companies.

UBS AG told its investment clients to sell gold and silver, citing a jump in speculative buying of these precious metals.

“Considering the speed of the increase and on the absolute level of the net speculative position, we are cautious about the near-term outlook for the gold price, wrote John Reade, UBS analyst in a note.  “We recommend nimble investors take any profits on any long gold and silver positions, looking to re-enter after a correction.”

UBS is standing by its predicted price of $950 for September, but says it expects gold to rise sharply in 2010.   So perhaps buy now, and consider your position again in the coming year.

Gold is now pricing at $1003.20 on the New York Mercantile Exchange.   If you recall, the previous high was March 2008, when it rose all the way to $1033.90.

The precious metal is often purchased as a hedge against inflation and a safe-haven to other investments as players seek to shelter losses if the dollar is expected to weaken further.   This is what happened in February and March of last year as investors sought shelter against the weakening economy.  In fact, it was one year ago this week that the recession was finally claimed by the U.S. government’s economists, having officially arrived as defined by the gross domestic product having declined for two or more quarters.

This year, the economy is said to be recovering.  But so far, the job market has not recovered.  Unemployment numbers released last week showed 9.7% unemployment in the United States, which is the highest those figures have been in more than 20 years.

This latest peak of gold prices shows uncertainty over jobs and the dollars standing.

“It is mainly the reflection of the weakness of the dollar,” according to Julian Jessop, an economist with Capital Economics.

Jessop also believes that the price of gold is further strengthened by market expectations that global central banks will keep their interest rates low for some time to come, encouraging investors to put their money where they believe it can grow, or at the very least will not decline in real value.

Gold is always a good value, but if you are considering buying it as an investment, then now is an excellent time. Because the next few months may be too late.

The summer has seen a rise in the price of gold, traded on international markets.  With the U.S. government printing more money in an effort to boost the world out of recession, the gold markets show no signs of cooling, unlike the currency markets which continue to vaccilate.

“Investors are becoming increasingly keen to buy gold.  Notably, inquiries are coming from small, first time investors as well as seasoned financial experts.  Recommendations from financial advisors are fueling a rush to commodities and in addition, many people are insuring up to 40% of their investment portfolio is in physical gold,” according to Jason Cozens, Managing Director of Au.

Financial experts, some of whom have been reluctant to put their clients in precious metals in the past, are now flocking to the yellow metal.  Gold has always been a safe haven, and a recession proof investment.

Currently in the United States, consumers are seeing deflation.  But with the Treasury Secretary ordering additional printings and the release of additional dollars into the market to pay for the stimulus package and its myriad of projects, gold may be the safest of all prospects now and in the long term.

That’s because as a rule, it behaves in a trajectory that is inverse to the value of the U.S. dollar.  In other words, as the dollar falls, the price of gold rises.

Reaching a high mark around $1000 per ounce earlier this year and opening the week at $956, one could wonder exactly how much higher it will go.  Or conversely, how much profit an investor could reap by wisely investing in a physical asset.

The demand to buy gold by ordinary individuals is now said to be so strong that novel ideas for selling it are taking off.  Figures released by the World Gold Council show that total demand for gold, including gold bullion, rose 1,016 tons in the first quarter of 2009, which represents a 38% increase on last year’s figures.

But what about silver prices?  Now here is a metal that many people are bullish about, in spite of itself.  It’s currently opening the week at $14.40 per troy ounce and expected to climb.  In fact some are seeing an opportunity.

Gold, as we have discussed here on this blog numerous times, is extremely tied to stability in the markets and the broader economy.  It is viewed by many investors as a good place to put cash when the markets are falling.  Gold is steady and stable and holds its value, if in fact it doesn’t increase because of the uncertainty.

But silver is often more volatile.  It’s value is of course, a fraction of the value of the same portion in gold.  The metal is also softer, tarnishes easily, and is often made into what we used to call in Southern California “beach jewelry.”  It’s also the favored metal of a lot of individual jewelry artisans in the American Southwest, which give it their own designs, shine and patina that are very popular with a lot of people.  Silver and turquoise jewelry made by Native Americans from the Southwest was particularly popular in the United States during the 1980’s and 1990’s, and to some extent it still is stylish.

And certainly part of the popularity has been the lower price of silver jewelry.  Silver has a history of following gold, but years ago, it was decoupled from the price.  It fell further and faster, widening a gap that some think was undeserved.  And still others believe may be possible to close that gap, even if just a little, once again.

Some investors believe that silver is an excellent metal to invest in.  If you do, you would do well to think in terms of silver as a commodity for investment rather than as an accessory.  Where gold’s value can be enjoyed around one’s neck and then resold as the price and need become expedient, silver is more of an investor’s metal.

And right now, it seems to be an investor’s market.

Analysts say that gold mining companies are seeing an increase in profits, up 84% at Newcrest Mining Ltd, (Australia’s largest gold mining company) which says sales are soaring.

The American dollar is reportedly under fire, according to the Irish brokerage, GoldCore Ltd, which said in a note to clients, “Gold is taking up the slack.”

We’ve all been watching the play back and forth between gold prices and the economy and wondering how it would play out.

“Gold prices continue to track currency movements and bounce back above the $950 an ounce level,” according to Suki Cooper, an analyst at Barclays Capital in London.

U.S. retail sales fell 0.1 ercent in July from June, according to the U.S. Commerce Department.  Most economic forecasts had called for an increase of 0.8 percent.

The economic situation is confusing, to say the least.  The Federal Reserve has extended its program to purchase U.S.  Treasuriers, or so-called “quantitative easing” for another month as they aim for a smooth transition in the markets.  And the Fed left the target rate for overnight bank lending at between zero and 0.25 percent, near record lows.

So the Fed is trying to transition the government’s involvement out of the markets, but not feeling strongly enough to withdraw completely.  What’s next?

Gold “should remain supported by the inflationary impact of the Fed’s rate decision, in addition to the boost to general risk sentiment,” according to James Moore, analyst at TheBuillionDesk.com in London.  And expectations for a weaker dollar over the next six months continue, with the price of gold likely to stay aloft through that period.