(FT) -- JPMorgan has reopened an underground gold vault in New York that was mothballed in the 1990s, in the latest sign of the soaring appetite for bullion. Investors are piling money into gold in record quantities, pushing the price on Friday to a record nominal high of more than $1,320 a troy ounce. That has made the vaulting business highly lucrative, since banks often charge a small percentage of the value of the gold stored. Many commercial banks dismantled their vaults in the 1980s and 1990s. But now they are rushing to build: JPMorgan recently built a vault in Singapore, while Deutsche Bank and Barclays Capital are considering opening new vaults in London. The demand for storage comes as investors are buying physical gold rather than investing in precious metals futures or mining equities. Private investors hold about 30,000 tonnes of gold, according to the consultancy GFMS -- more than a sixth of the world's gold and, for the first time in modern history, more than central banks. http://edition.cnn.com/2010/BUSINESS/10/03/jpmorgan.gold.vault.ft/
I've been on the phone with Cyprus, UK, Morocco, Italy and I'm hearing things are stable. Most expect things to get worse before better, one last shake out. But overall, they are very optimstic. I would have to agree. So, opening the GOLD VAULT is a smart idea. People are going to buy and hold onto Gold for sometime. Here, in the US...many are starting to understand that the Middle Class will loose a lot of buying power and move into the lower middle class or in some cases, into poverty. They are starting to undertand that most jobs lost, are not coming back. So, they must learn a new trade or find something else to base a carrer on. Many understand that easy credit is going away. If you can't pay cash, you don't buy it. Retail numbers....more layoffs coming in that arena. Multi-national banks are weak and banks tied to lending for RE, are still in trouble. Most are avoiding those banks and putting money in local and regional banks that are Strong. Many of those banks are adverstising how "Strong" they are and attracting a boat load of capital. Smart money has fleed the US stock Market and probably will not return for some time.
Time to get the fuck out of gold, im bullish but day after day reading these headlines makes it time to get the fuck out and take profits.