Precious Metals Rebound
Jul 2nd, 2009 | By Doug Casey | Category: Gold MarketGold was only modestly higher from the overseas markets to the New York open on Wednesday, but it spiked up to mid-morning at that point, leveled off, spiked again at the noon hour, then drifted lower through the rest of the day, to finish at $940.30/oz., up $13.70. Overnight, gold is trending lower.
Platinum was lower at the end of Hong Kong trading, but shot higher from there to the noon hour, adding $30, then held its gains through the day, ending at $1199/oz., up $22. Overnight, platinum has fallen off.
Silver moved a bit higher in the far East, but was trapped all day in a range between $13.60 and $13.80, finally flattening out through the Globex to close at $13.70/oz., up 15 cents. Overnight, silver is sharply lower. (Click here for charts)
After the beating they took on Tuesday, the precious metals showed some spunk yesterday, taking back the lost ground and then some. With the dollar sliding and oil doing likewise, some help from the usual suspects was finally forthcoming.
James Moore, of ThebullionDesk.com muted his optimism by saying that “the outflow of SPDR metal [Tuesday], absence of substantial demand despite the recent correction, and still sizable speculative longs suggest the market is at risk to further pressure in the short-to-medium term.”
GLD announced on Tuesday that it had sold off 5.19 metric tons, or 167,000 ounces, of gold from its vault.
Platinum, meanwhile, gained on speculation that usage in China is on the way to heating up.
“Chinese platinum demand, which slowed sharply in May and early June, posted a decent recovery in the past fortnight as platinum prices dipped,” wrote John Reade, of UBS in London. “Chinese jewelry demand for platinum is providing a strong crutch” this year, he said.
With automakers accounting for much of the demand for platinum, good numbers out of China in that regard also helped. The country saw an overall 14% gain in auto sales for the first five months of 2009. And GM, the biggest overseas-based automaker in China, said its first-half sales in the country rose 38% to a record 814,442 vehicles as the government’s stimulus package took hold.
Source: Precious Metals Rebound
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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.