Gold Little Changed, Silver Plummets Again
Apr 22nd, 2008 | By Doug Casey | Category: Gold MarketGold had a very quiet day during which it recuperated from Friday’s losses and, except for a brief blip up at the open of the New York session on Monday, traded within a tight $10 range, finishing at $917.10, up 90 cents from Friday. Overnight, gold has edged higher.
Platinum was above $2040 as New York opened, declined from there back to the $2000 level, but then rebounded modestly to end at $2012/oz., down $41. Overnight, platinum is off sharply.
Silver had a very volatile day, rising as high as $17.95 right at the open, then taking a shot to the chin for the second straight day and collapsing to as low as $17.25 before a mild rally raised it to close at $17.42, down 42 cents. Overnight, silver is trending higher.
(Click here for charts)
Gold investors hoping for a big bounce from bargain hunters after Friday’s nosedive were disappointed at not getting it, while fanciers of silver and platinum had to be even more troubled.
It was especially disconcerting since the usual suspects, the declining dollar and rising oil, lined up in the metals’ favor. But they were clearly caught up in the broad-based commodity selling that took place yesterday.
“The lower weekly close in gold was bearish from a technical point of view,” wrote Mark O’Byrne, of Gold & Silver Investments Ltd., but “with oil and the dollar remaining near record highs and record lows respectively and with physical demand internationally and particularly in Asia and China remaining strong, gold is unlikely to fall below $900 per ounce.”
A while back, we alerted readers of a gambling nature that Jim Sinclair of jsmineset.com was willing to wager a million bucks that gold will trade at $1650 on or before the close of the COMEX open outcry session at the end of the 2nd week of January 2011.
Now it appears that Sinclair has found a taker. He announced that it “appears an agreement will be concluded shortly between myself and a Canadian hedge fund as counsel for both parties.”
Sinclair has not as yet named the other bettor, but he promises to release all details once the deal is finalized. For our part, we’re inclined to believe that Jim will make himself a cool million.
And the wire service Interfax reported that, “For the first time, the Central Bank of Russia purchased gold for its international reserves from gold producers, a source in banking circles [says]. Previously the Central Bank had always purchased gold on the interbank market.”
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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.