Gold, Silver Streak Higher
Jan 30th, 2009 | By Doug Casey | Category: Financial NewsGold was lower from the foreign markets to mid-morning in New York, but then it was off to the races as it jumped $25 from there to the Comex close, and continued to build on its gains through the Globex, plowing back over $900 to finish at $907.70/oz., up $21.30. Overnight, gold shot higher.
Platinum took off at just the same time although it got capped around noon, trading sideways from there and ending at $973/oz., up $24. Overnight, platinum is trending higher.
Silver fell as low as $11.65 in the early London session, but it was lights out once New York opened, jetting from near $11.70 at that point all the way to $12.40 in the Globex, before finally tapering off just a bit to close at $12.37/oz., up 42 cents. Overnight, silver is sharply higher. (Click here for charts)
It was a banner day for the precious metals yesterday, with gold rising for the first session in three, as grim economic news sent investors fleeing en masse to the world’s only legitimate safe haven.
Among the usual suspects, even sliding equities and oil couldn’t hold gold back, and the relatively small slip in the dollar hardly accounts for the stampede to quality.
“We’re seeing a bit of bounce in gold because of what the equity markets are doing now,” said Matt Zeman, of LaSalle Futures Group in Chicago. “Investors are backing out of equities and going to gold and other assets that are viewed as safer.”
It may turn out to be more than ‘a bit of a bounce’ if the ugly numbers keep piling up.
As Peter A. Grant, of USAGOLD, put it, “The dismal durable goods and new home sales numbers along with the rise in initial jobless claims have undoubtedly eroded risk appetite today, driving flows into gold.”
Investment in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, was nil yesterday, but GLD has been adding substantially to its vaults lately, and reached a record 832.9 metric tons on Tuesday.
The only cautionary note was sounded by Tom Pawlicki, of MF Global (NYSE:MF) in Chicago, who said, “Trade will be sensitive to the inflationary aspects of the stimulus plan making its way through Congress … The risk is if the stimulus causes the stock market to rise, which could draw investment away from gold.”
Source: Gold, Silver Streak Higher
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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.