Precious Metals Prolong The Glory Moment
Feb 2nd, 2009 | By Doug Casey | Category: Financial NewsGold had another strong day, shooting higher at the London open that carried through to mid-morning in New York, then rebounding from a short, sharp selloff to push higher the rest of the day, finishing at $926.30/oz., up $18.00. For the week, gold tacked on 3%.
Platinum rose slowly but steadily through the day, ending at $987/oz., up $14. For the week, platinum added 3.8%.
Silver followed gold’s path to a T, closing at $12.65/oz., up 30 cents. For the week, silver advanced a robust 5.9%. (Click here for charts)
After a weak start, it proved to be a very good week for the precious metals, capped by the last two days’ excellent gains. Best of all, from a bug’s point of view, was that gold surged to a 6-month high fully in the face of a strengthening dollar. Perhaps the decoupling that has long been predicted, has arrived.
Certainly, the recent rise in gold suggests that increasing numbers of investors are concluding that the metal is a better parking place for their money than anything denominated in US dollars.
As Joel Crane, of Deutsche Bank (NYSE:DB) in New York, put it: “Central banks are going to start printing money and it’s not an ideal place for investors to be … People don’t have faith in currencies at the moment. There is still an underlying faith that gold will go higher.”
Meanwhile, the Hightower Report had this take on the day’s action: “As suggested in the mid day coverage today even the US President admits that conditions in the US are severe and with the ‘Bad Bank’ plans seemingly calling for backing of up to $1 trillion the flight to quality argument clearly remains in the forefront of market psychology. Some players in the gold market even suggested that the not as bad as expected US GDP (NYSE:GDP) reading was another reason to buy gold and that highlights the bulls capacity to spin most of the data flow into a positive. Some traders even suggested that the fear of labor problems and subsequent strikes at US and UK refineries were serving to lift energy prices and that in turn could also be another anxiety issue that serves to push buyers toward gold.”
Naturally, the bulls are celebrating. “Demand remains very high internationally for ETFs, gold certificates and bullion coins and bars,” said Mark O’Byrne, of Gold and Silver Investments. He’s seen “continuing safe haven demand for gold” due to the “sharp deterioration in the global economy.”
Source: Precious Metals Prolong The Glory Moment
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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.