It ain’t much fun being a miner in these torrid times. It’s raining supply problems, infrastructure problems and energy costs are rocketing. Time for investors to be really picky!
If you want to own gold, this is how you should do it…Quite frankly, it’s unbelievable… Rare gold coins are selling as close to melt value as they possibly can.
The gold price lost about eight bucks (silver was down about 20 cents) from the open in Sydney on Thursday morning until about fifteen minutes before the Comex opened in New York yesterday morning.
Gold was slightly lower until the open of the New York session on Thursday, but went vertical at that point, adding $20 in an hour and peaking at $908 before easing during the rest of the NYMEX and dropping further in the Globex to fall back below $900 and finish at $898.00/oz., up only $4.40. Overnight, gold is trending higher.
Gas prices hit another record high. Soaring food prices ignite riots the world over. It should come as no surprise that a 71% increase in food prices since 2006 has the good citizens of South Africa, Morocco, Egypt, Ethiopia, Bangladesh and Mozambique up in arms.
Both gold and silver began selling off in London at 5:00 a.m. New York time. Then at precisely 9:00 a.m. Eastern time, a not-for-profit seller showed up, and gold and silver got smacked at exactly the same time as the dollar skyrocketed.
After reaching a record level, gold has lost some of its momentum lately. That can be seen in a number of different ways. Gold and Options Trader’s Ed Bugos sees this as only good news. Gold should have another surging summer, and now is the best time for investors to get in by playing the “dips”.
With aging power plants and failing infrastructure, South Africa needs an injection of investment cash into its power sector. And while its economy technically maintains a budget surplus, it’s constantly battling things like unemployment and poverty.
There are lots of reasons why a small company share can go up in price quickly. Usually it’s an innovative new product, a new market, or, in some cases, a sudden change in the market value of a good, product, or service.
As I wrote yesterday, oil went above $107 a barrel following an attack on an Iraqi pipeline. But it soon fell back again. Oil, along with gold, has risen strongly as the dollar has fallen. To some, therefore, it seems that oil is could offer hedging potential.