Gold Has Another Disappointing Day, but Silver Rises Again
Nov 3rd, 2008 | By Doug Casey | Category: Financial NewsGold sank in the overseas markets, rallied back into positive territory by mid-morning Friday, but made its high for the day there, as it declined for the rest of the Comex before steadying through the Globex and finishing at $723.70, down $12.00. For the week, gold was off 1.5%.
Platinum bottomed near $770 in late Hong Kong trading, but moved gradually higher through most of the rest of the day, ending at $819/oz., down $7. For the week, platinum gained 3%.
Silver also hit its low late in Hong Kong, and it too pushed steadily higher, making it back into positive territory to close at $9.86/oz., up 13 cents. For the week, silver tacked on 5.2%. (Click here for charts)
While silver had a decent day, gold turned in yet another lackluster performance, ending October with a loss of 18%, the largest monthly decline for the metal in 28 years.
Gold was also held back as the dollar strengthened again vs. the euro, which offset any boost that might have been gotten from rising oil prices.
The reason for weakness in gold seems simple to Adrian Day, the president of Adrian Day’s Asset Management: “Global liquidation means more money from foreign assets are going into the dollar,” Day wrote. “The dollar is seen as a safe haven. There’s also liquidation of gold itself, which is easily sold.”
James Turk, the founder of Goldmoney.com, had a different take, though, saying that, “The dollar is in a short squeeze that won’t last much longer … Gold is dropping in dollar terms because of central-bank intervention and the massive deleveraging of dollar debt.”
The general sector weakness is also obviously playing in, with the Reuters/Jefferies CRB Index of 19 raw materials notching its steepest monthly decline since at least 1956.
“There’s significant pressure on all metals and commodities,” said Paul Sutherland, of Financial & Investment Group in Traverse City, Michigan. “Gold is not acting like a currency. It’s acting like a commodity. People are selling gold and gold shares because it’s something you can sell to raise cash.”
Source: Gold has another disappointing day – But silver rises again
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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.