Precious Metals Mixed
Apr 1st, 2009 | By Doug Casey | Category: Financial NewsExcept for a very brief dip below $915 in the late morning, gold was stuck fast between there and $925 all day, finally finishing an uninspiring day at $918.00/oz., up $2.20. Overnight, gold is trending higher.
Platinum peaked in Hong Kong at $1130, declined into an $1115-1125 range, and stayed there for the rest of the day, ending at $1125/oz., up $12. Overnight, platinum has been flat.
Silver noodled along little changed until the second hour in New York, when it bumped up about 15 cents, to $13.25, but then it hit an abrupt and savage waterfall decline that shoved it all the way down to $12.60, after which it was able to cut some but not all of its losses, as it clawed back to a close at $12.97/oz., still down 9 cents. Overnight, silver is little changed. (Click here for charts)
In the real world, it was a mixed day for the precious metals, as gold and platinum eked out gains but silver was whacked on the head like poor Wile E. Coyote. Gold fanciers surely hoped for a better result as the dollar weakened and oil staged a bit of a comeback, but it was not to be.
What to make of silver. It continues to struggle in the face of enormous physical demand from investors. The U.S. Mint has released its quarterly figures, and in 1Q09 it stamped out a staggering 7,157,000 1 oz. Eagles. Folks, that is a lot. It took 222.6 metric tons of silver to make that many coins. In the past, there have been whole years in which the mint didn’t produce as many.
Here’s the odd thing. Despite this massive infusion of Eagles into the market, they’re still hard to find. Demand remains so high that dealers, such as our own Kitco, are charging an average of around 35% over spot for the things. And expect shipment delays, Kitco warns on its own website.
On eBay (NASDAQ:EBAY), our purest free market trading platform, the situation is even more frantic, with buyers willing to pay, in some instances, more than 50% over spot to land a roll of 20 Eagles.
That’s no joke. So what on earth is going on here? Obviously, the paper-controlled Comex silver price is completely out of synch with the action on the ground. If you can afford it, the smart move would seem to be to buy a silver contract on the Comex (5,000 ounces) and stand for delivery.
Advertisement
Steve Sarnoff makes one pick each week. In both 2005 and 2007 - he picked 100% winners. His recommendations are straight-forward, easy to understand, and they could help you turn just $5,000 into $1,000,000.
Get all the details here on this amazing offer.
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.