IMF OKs $11B Gold Sale

Economic uncertainty drives price toward 1980 highs

(NEWSER) - Gold’s lure as a safe haven from economic upheaval has Wall Street worried that investors are turning their backs on the markets, reports the LA Times. Gold prices have pushed steadily toward $850 an ounce, a level it hasn’t seen since 1980. "The markets' statement is that the US has lost its way," said one economist. More»

Prices dropping as investors gain confidence

(NEWSER) - Gold prices surged more than sevenfold in the decade after 2001 but after peaking at $1,920 per ounce last September, prices been falling rapidly as the US economic recovery creates better alternatives for investors, reports the Financial Times . Yesterday, gold hit a 10-week low of $1,627.68—down 9% from late February—and interest in gold futures on COMEX, New York's commodity exchange, is close to a two-and-a-half-year low. Sentiment towards gold is as low as it has been for many years, possibly since the rally started,” one commodities trader says. More»

Our sagging economy proves that it's time to stop conjuring dollars

(NEWSER) - There was a time when money meant something, but now—as evidenced by the Federal Reserve’s “ plan to conjure $600 billion to support the sagging economy”—“dollars can be conjured.” In fact, writes James Grant in the New York Times , “in the digital age, you don’t even need a printing press.” And that’s not right. It’s time for the return of the gold standard, last in place from 1880 to 1914. “In its utility, economy and elegance, there has never been a monetary system like it.” More»

Time to act like a real business, and bust those betting against US

(NEWSER) - The federal government's vast stash of gold could be used to both bring down the deficit and drive its critics crazy, writes Thomas Frank. If the government were to take the advice of its critics and really start acting like a business, it would unload its 261 million ounces of gold, now at a near-record high, putting "Fort Knox on eBay" and having President Obama star in TV ads, Frank writes in the Wall Street Journal . More»

How one country ducked the economic downturn

(NEWSER) - Australia has weathered the financial crisis better than any other developed country. Last week its central bank raised interest rates, indicating its primary concern is now inflation, not growth. What were the keys? Phil Dobbie of BNET explains:

• Befriending China: Australia used to export much of what it made to the US and UK, but over the last decade much of that trade has shifted to China. In fact, some economists argue that Australia didn’t need a stimulus package—Beijing’s stimulus was enough.