Precious Metals Really Take Off
Jan 26th, 2009 | By Doug Casey | Category: Financial NewsAfter two lackluster days in a row, gold rocketed higher on Friday, turning sharply north at the London open, leveling off from there to the New York open, then really taking off at mid-morning, peaking above $900 shortly after noon, before easing slightly through the rest of the day and finishing at $899.10/oz., up an impressive $42.70. For the week, gold added a healthy 6.8%.
Platinum was in the red in late Hong Kong trading, but busted higher from there to a peak of $960 in the first half-hour after the Comex, though it eased slightly through the Globex to end at $951/oz., up $29. For the week, platinum was up only 8/10 of a percent.
Silver was in negative territory until mid-morning, when it too caught fire and spiked 80 cents over the next two hours, topping out at $12.07 before settling a bit lower on the Globex to close at $11.94/oz., up 55 cents. For the week, silver bagged a 6.3% gain. (Click here for charts)
What a day for the precious metals, as they all posted solid to spectacular gains. The usual suspects provided little in the way of impetus for the rally, as equities were mixed, the dollar was stronger vs. the euro, and oil leapt higher.
That gold did so extraordinarily well is suggestive that it may be finally decoupling from the US dollar. At the least, there is a clear flight to quality going on in the face of the deepening recession.
Kevin Kerr, editor of Global Commodities Alert grabbed the spirit of the day, commenting that, “Investors are starting to see that the yellow metal is one of the few havens for protection from what is an inevitable wave of inflation.”
In addition, Kerr said that, “Technically, gold is surging through some key levels, along with silver, and we are starting to see investors dip their toes back in the market … Gold may well lead commodities out of this [recent] widespread sell-off.”
We couldn’t agree more.
Peter Spina, of GoldSeek.com, is confidently looking forward to a further rally towards $1,000 an ounce, which is possible “with momentum and buying interest very strong this week.”
Spina added that, “Investors are looking to shelter their wealth and gold is one of the few choices they have in these unstable markets … Wealth preservation is 2009’s theme.”
Source: Precious Metals Really Take Off
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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.