11
May
2009

Gold Investments Market Update

Gold and silver prices rose last week (gold was up 3.1% and silver rose sharply by 11.6%) as the US dollar fell sharply and broke down technically and US bonds continue to sell off aggressively.

Stock markets remained sanguine as ever and continued on their merry way despite valuations looking very ripe and the recent bear market rally looking long in the tooth. Ostensibly the data was positive last week leading to more “green shoots” speculation but the jobs data was actually poor (previous months jobs number was revised upwards – March Nonfarm Payrolls revised to (699K) vs.

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08
May
2009

Gold Investments Market Update

Gold rose for the fourth day yesterday and is up some 3.5% so far this week and set to complete a very strong week. As expected, under reported and leveraged silver has outperformed gold and surged more than 12% this week. A close above $14.60/oz, could see silver again challenge recent nominal highs at $20.88/oz.

Gold’s rise in recent days has been volatile with sharp moves up followed by retrenchments and this is leading to an under appreciation of gold’s move up and a perception that gold is struggling. Some of the larger shorts appear to be engaged in a form of managed retreat.

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07
May
2009

Central Banks Favouring Gold Again Especially the “Elephant in the Room” China

Gold rallied 2% following news that China’s state holdings of the metal have been quietly raised by 76% since 2003. Rumours and speculation about Chinese buying have been rife for years, but many market participants remained in denial until this irrefutable proof was given. China is not only the world’s largest mine producer of gold, but also the fifth-largest individual country holder of gold with 1,054t.

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06
May
2009

Gold Investments Market Update

Gold and silver rose marginally yesterday as the dollar again fell. Gold initially surged to over $914/oz (from $901/oz) prior to determined selling capped the price and saw it fall again below the psychologically important $900/oz mark. Silver was again more resilient and rose 2.8% to $13.40/oz. Both have gradually eked out gains in Asia and early European trading.

Concerns about the international financial system and their implications for the dollar and other currencies and inflation going forward look likely to see gold remain firm for the foreseeable future.

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05
May
2009

Gold Investments Market Update

Gold and silver both fell some 3% last week despite increasingly bullish technicals and fundamentals. Risk appetite remains high as seen in equity markets onward advance in the face of falling earnings and latent risk. Yesterday gold and silver soared as US stock markets opened and eked out strong gains of 1.8% and over 4% respectively, erasing last week’s losses.

The dollar was marginally lower for the week and fell sharply yesterday. The dollar could be on the verge of the next stage of the dollar bear market after the recent bear market rally.

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30
Apr
2009

Gold versus Warren Buffett

I have just completed an analysis of the performance of the spot price of gold vs. Berkshire Hathaway. I think you will find the results are a little suprising.

Spot Gold vs. Bershire Hathaway

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30
Apr
2009

Gold Investments Market Update

Gold and silver rose yesterday (the first day in three) after the worse than expected US GDP report saw the dollar fall in value. Gold fell after the Federal Reserve released its optimistic note but recovered almost immediately.

Gold subsequently traded sideways in Asia and early trading in Europe prior to another bout of furious selling just after 1000 GMT this morning which again saw gold fall a very sharp $10 in a matter of minutes despite the lack of any market or economic news of great significance.

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29
Apr
2009

Gold Investments Market Update

Gold fell marginally for a second day yesterday as it continues to consolidate after last week’s 5% gain. Gold’s trading was erratic yesterday with unusually large sell orders leading to sharp falls in the price in seconds prior to mild rebounds. Such sharp and speedy declines are very unusual and would suggest a large player wanted gold prices lower in the futures market.

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28
Apr
2009

Gold Investments Market Update

Gold fell modestly yesterday while silver rallied as markets digested the unpalatable news of a potential global swine flu pandemic.

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17
Apr
2009

Gold Investments Market Update

Gold and silver fell yesterday (1% and nearly 4% respectively) as strength in the dollar and increasing risk appetite, as seen in rising equity indices, saw the precious metals come under pressure.

Demand remains strong despite the slight fall in the holdings of the SPDR Gold Trust (world’s largest gold ETF), whose holdings fell 0.7% from the previous day (down 0.7 percent or 8.25 tonnes to 1,119.43 tonnes as of April 16). But demand in India has resumed for the Hindu festival of Akshaya Tritya (considered an auspicious time to buy gold) and while not spectacular is robust nevertheless.

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