Gold, Silver Rocket up in After Hours, Surging Equities Help
Nov 14th, 2008 | By Doug Casey | Category: Financial NewsIt was a schizophrenic day for gold and silver, which could do little right during regular trading but couldn’t be stopped in the after hours action.
There may have been some delayed reaction to the declining dollar and rising crude prices, or a correlation with equities markets which were off sharply (the Dow dipping briefly below 8000) before staging a late monster rally.
Analysts have no way of knowing just what they’re seeing.
Dale Doelling, chief market technician at Trends In Commodities said that “if this rally is able to sustain itself, the Dow should rally to at least the 9,500 level and I expect gold to be able to rally back above the $900 level.” But, “This is all dependent upon what happens tomorrow. If this ends up being a one-day event, all bets are off.”
There’s even a little guarded optimism out there.
“Markets, all of them, seem to be acting as if the hedge fund liquidation may have hit a cataclysmic bottom,” said Ned Schmidt, editor of the Value View Gold Report.
“With the Federal Reserve pumping funds as fast as they can, gold has extremely good fuel for a run higher [in] 2009,” Schmidt added.
But pessimist Dennis Gartman, editor of the Gartman Letter isn’t budging. “The gold market is telling us that deflation has ravaged the base metals, the soft commodities, the grains,” Gartman says, and also “telling us that depression is possible and even likely, and that deflation is the order for the day.”
Source: Gold, silver rocket up in after hours - Surging equities help
Advertisement
The problems in the U.S. economy have come together to create a "super crash" that has already wiped out $6 trillion worth of American wealth. But those who understand how to play the many bear market opportunities out there are still making healthy profits… while everyone else loses.
Television analyst and leading bear market strategist Peter Schiff is handing you his precise game plan to ensure you survive market downturns and grow 5 times wealthier over the next six months. And he's doing it for FREE. Click here for details.
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.