Gold and Especially Silver Rocket Upward
Jul 2nd, 2008 | By Doug Casey | Category: Gold MarketGold was slightly higher until the New York open, trading between $925 and $930, but took off from there, rising to a peak of $946 just after noon, then pulled back for the rest of the day, finishing at $939.70/oz., up $13.80. Overnight, gold has fallen off.
Platinum strayed very little from the $2060-2070 range all day, ending at $2065/oz., up $14. Overnight, platinum has been flat.
Silver was the day’s big winner, shooting up with gold at the New York open and rising from $17.50 to a peak of $18.19, before easing slightly to close at $18.09/oz., up 69 cents. Overnight, silver has been trending lower.
(Click here for charts)
Although platinum continued to tread water, it was off to the races with gold and silver yesterday after Monday’s inactivity.
The usual suspects were both lined up to help, as oil pushed to new highs and the dollar slipped marginally.
It will be interesting to see what happens over the next two days, as market participants begin to trickle away for the long holiday weekend in the States (Canadians will be returning from Canada Day today), but some analysts are persuaded that the bull is really thundering ahead at this point.
Gold has seen “increased support as a safe haven investment during these uncertain economic times,” wrote David Beahm, a vice president at Blanchard and Co. “Coming off their worst June since the 1930s, the financial markets are just too volatile right now for many investors to feel confident.”
In Beahm’s opinion, it all hinges on what happens tomorrow. Should the ECB raise rates, “ which all signs are pointing toward, the dollar will fall even further and commodities will shoot upward.”
Jim Sinclair, of jsmineset.com, was even more explicit.
“This Is It,” Sinclair wrote. “Gold is preparing for an assault not on $1000, but for a brief penetration of $1200. Violent chopping will occur, then off it goes to $1650. This violent chop we have been living in here and now will resolve itself very soon and the take will be seen by history as having occurred in this last formation HERE AND NOW.”
A bit less apocalyptic was Mark O’Byrne, of Gold and Silver Investments Ltd., who wrote that $952 is “now the key resistance for this market … Any close above $952 should see us re-challenging the psychological $1,000 in very short order.”
Source: Gold and Especially Silver Rocket Upward
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.