Gold Marks Time, Silver Rises and Platinum Falls
Oct 4th, 2008 | By Doug Casey | Category: Financial News, Gold MarketGold held in positive territory until the first hour of New York trading on Friday, when it fell below $820, but it then rallied back to break-even and traded sideways straight through the Globex, finishing at $834.80, up all of 30 cents. For the week, gold shed 5%.
Platinum spent the entire day rising and falling around the $960 mark, finally ending just above it at $962/oz., down $8. For the week, platinum crashed a ghastly 13.1%.
Silver moved higher in Hong Kong and stayed there through New York trading, eventually topping out at $11.72 around midday, then slid a bit through late COMEX and Globex trading, to close at $11.16/oz., up 31 cents. For the week, silver was smashed down by 16.1%. (Click here for charts)
It was a very mixed day for the precious metals as gold was essentially unchanged, platinum declined, and silver pushed higher.
Gold was a good proxy for the usual suspects yesterday, as neither was much changed. The dollar moved slightly higher and crude was slightly lower.
The Hightower Report wrote of the disconnect in the precious metals: “The silver market clearly diverged with the gold market during the action Friday, as the silver market seemed to adopt the physical commodity posture while the gold market was under pressure because of declining economic uncertainty. With the copper market managing a week ending bounce, it is possible that action inspired some similar short covering in the silver market.”
The market is obviously not concerned that, in the long run, the bailout bill is highly dollar-negative and gold-positive.
“Everybody has their fingers crossed that the plan is going to restore some trust in the financial market and jump-start the real economy again,” said Jeffrey Nichols, managing director at American Precious Metals Advisors.
Earth to ‘everybody’: You don’t have enough fingers. The bailout does nothing to jump-start the economy. It will prolong the pain, however.
Nichols hit the nail on the head when he added that, “The way the government is dealing with [the financial industry] is simply throwing money into the financial sector … In the long run all this is going to translate into higher inflation, which is bullish for gold.”
Source: Gold Marks Time, Silver Rises and Platinum Falls
Advertisement
Latin America is booming. And our colleagues in Buenos Aires, Argentina are well placed to help you profit from the many value opportunities south of the border. They have launched an email report service entitled LatInforme Diario that covers both Latin American and international investment opportunities. It's written daily in Spanish by South American market experts, Horacio Pozzo and Paola Pecora. If this is something you would be interested in, I encourage you to click here ... and by the way, it's free!
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.