Precious Metals Continue Upward
May 21st, 2009 | By Doug Casey | Category: Gold MarketGold was marginally higher through the first hour of New York trading on Wednesday, but then took off, adding $12 in under an hour, to its intraday peak of $940, then eased only slightly through the rest of the Comex and the Globex, finishing at $937.20/oz., up $12.20. Overnight, gold has edged higher.
Platinum was down in the far East, rallied nearly to $1160 by mid-morning in New York, then declined to end at $1143, up $4. Overnight, platinum has moved higher.
Silver was also down in Hong Kong, rose from there to its intraday high of $14.38 near the noon hour, then tailed off to close at $14.25, up 10 cents. Overnight, silver is slightly lower. (Click here for charts)
The precious metals kept on riding their uptrend yesterday, as the usual suspects continued to play ball, with the dollar dropping once again and oil advancing.
In addition, scrap sales have slowed. Gold owners sold a record 558 metric tons (17.9 million ounces) of metal to market in the first quarter of 2009, when gold rose to an 11-month high, according to a World Gold Council report.
Now, however, “We don’t see a lot of scrap coming out because people already sold into the market on the first rally,” said Bernard Sin, head of currency and metals trading at Swiss refiner MKS Finance SA in Geneva. “We are inching up bit by bit” as investors are hanging onto their metal rather than selling, he said.
The World Gold Council also reported that investment purchases more than tripled in the first quarter, to 595.9 tons (19.16 million ounces), even as jewelry demand was falling 24%, to 339.4 tons (10.9 million ounces).
“Investment flows in the first quarter of this year were unprecedented and, based on an analysis of the past 30 years of the gold market, probably unsustainable in the long term,” wrote UBS analyst John Reade.
But, Reade added, “Investors are turning to gold because of fears of long-term inflation and major currency debasement due to fiscal deficits, government debt issuance and quantitative easing. All of these concerns are likely to continue for the next year or so.”
Source: Precious Metals Continue Upward
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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.