Precious Metals Continue Upward
Mar 16th, 2009 | By Doug Casey | Category: Financial NewsGold was in the red until just before the New York open on Friday, shot up as high as $938 a few minutes into the session, but then dropped back by mid-morning and traded sideways through the rest of the Comex and the Globex, finishing at $928.20/oz., up $2.10. For the week, gold was down 1%.
Platinum traded within a tight $13 range all day, and in the end wound up little changed at $1055/oz., up $4. For the week, platinum lost 1.4%.
Silver followed along with gold for a fourth straight day, peaking at $13.29 in initial New York trading, then easing a bit into a close at $13.20/oz., up 25 cents. For the week, silver declined just under 1%. (Click here for charts)
The precious metals held on as the week wound down, in a day more of consolidation than volatility in either direction.
Perhaps a little more might have been expected from gold as equities pushed higher again and the dollar slipped lower, but oil also slid after Thursday’s big rally, and that may have applied some drag.
“Gold prices are buoyed by ETF demand,” said James Moore, of TheBullionDesk.com. It “should benefit further in the coming sessions by renewed investment demand as the economic and financial sector outlook deteriorates further.”
SPDR Gold Shares (NYSE:GLD) continues to pile up metal. GLD’s holdings added a fresh 3.36 tons (108,000 ounces) yesterday, hitting a new record of 1,041.53 tons (33.49 million ounces). Moreover, that means the ETF has edged past Switzerland to become the sixth-largest holder of gold in the world. The Swiss have 33.47 million ounces.
Gold’s rise, though, could be capped by the positive rhetoric out of DC.
As Bill Murphy wrote on lemetropolcafé.com: “In addition to Obama’s comments on buying stocks, Fed chairman Bernanke is going on 60 Minutes Sunday, a highly unusual move to begin with and unprecedented three days before a Fed meeting (next Wednesday). All of a sudden ‘the generals’ of America’s most established corporations were brought back from the dead to pronounce to America that suddenly all is going well. We have seen the top dogs of Citigroup (NYSE:C) and Bank of America (NYSE:BAC) visibly pronounce they are making money. (NYSE:JPM) JP Morgan’s Jamie Dimon, gave his own pep talk. Other banks have come out and stated they want to sent their ‘Tarp’ money back. Even GM (NYSE:GM) says it doesn’t need the $2 billion it just requested, due to cost saving measures.
“There is more, but suffice it so say, all of this seems too pat. A wave of the magic wand and the crisis is under control? Time will tell on that score, but it seems highly suspect to me.”
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.