Further news about the divergence of the futures and physichal bullion markets.
"Gold Will Be Looked At In A Very Different Light Going Forward" Gold rose yesterday on bank failures and systemic fears in Europe and after the US Congress voted against the Paulson and Bush bailout plan (gold closed at $888.40, up $7.20 while silver closed at $12.93, down 45 cents).
Gold and silver rose slightly Friday (gold closed at $881.20 up $6.80 while silver closed at $13.38 up 19 cents).
New World Financial and Economic Order Gold and silver fell yesterday (gold closed at $874.40 down $13.30 cents while silver closed at $13.19 down 18 cents) despite the wider markets becoming increasingly nervous regarding the possible US bailout. Oil rose but the dollar's strength, despite the litany of increasingly bearish news confronting the world's reserve currency, led to further profit taking and hesitancy by gold longs to take positions.
Physical Demand Surges Internationally on Supply/Demand Fundamentals and Macroeconomic, Inflation and Systemic Risk Gold was flat while silver rose yesterday (gold closed at $887.70 up 90 cents while silver closed at $13.37 up 25 cents) as gold continued to consolidate near eight week highs. The COMEX October gold contract expires later today and there are significant levels of open interest between $890 and $910 which may see bullion constrained until the contract expires whereupon we may see further moves to the upside.
This fascinating, frightening and compelling video details the plundering of Austrian, Czech, Polish and other national gold reserves and the theft of German and european citizen's (especially the Jews) gold for the Reichsbank. . Gold was moved to a secret potassium mine in Merkers in Thuringia in the very heart of Germany. .
Gold's Fundamentals Stronger Than They Have Ever Been Gold and silver fell yesterday (both by about 2% ) on profit taking before rallying again in after hours trading and then falling in Asia.
Prospect of $1 Trillion US Annual Budget Deficit - Precious Metals Surge Gold and silver surged again yesterday (up 5% and nearly 8% respectively) as the serious inflationary consequences of the Treasury's unprecedented plan to buy up at least $700 billion of toxic assets was realised. Gold surged from $861.40 to close over $900/oz but has since given up some of its gains, likely on profit taking.
"Ponzi" Casino Capitalism Discredited - Risk of Global Monetary Crisis Gold and silver surged last week (up 13% and 15% respectively) as the financial crisis deepened considerably and there was a realisation that the "ponzi" casino capitalism of recent years has critically wounded the US financial system and done serious damage to the global financial system.
Gold & Silver Investments very own David Russell appeared on CNN on Friday:
Gold Gold and silver surged yesterday with gold up $69.30 to $847.30/oz and silver up $1.11 to $11.59/oz. Gold surged by 8.9% to $847.30 (silver +10.6%) at the close in New York and continued to surge in electronic trading to over $870/oz. Asian trading saw the surge continue and gold traded as high as $893/oz. Gold subsequently fell prior to rising to some $870/oz as markets began trading in London. These are unprecedented movements and gold rose from a low of $780 to a high of $893 or more than 14% in less than 24 hours.
The New York Times have an interesting interactive diagram showing the losses that Wall St. have sustained over the last year*. As techcrunch put it: The collapse of so many major financial institutions in the past year, and over the past few days especially, is hard to fathom in its enormity. Sometimes you need a good visual to put things in perspective.
Gold Gold fell slightly yesterday down $3.60 to $778.40 but silver had sharper falls and was down 54 cents to $11.02. Gold has again traded sideways in Asian trading but has risen in early European trading to $780/oz Gold's wealth preservation qualities are being felt with the precious metal remaining resilient despite volatility and sharp sell offs in many other markets. Gold is only marginally negative (some -1%) in the last month despite sharp falls in the majority of stock markets.
Gold Gold and silver rallied Monday as the crisis on Wall Street worsened with gold up $21.70 to $782 and silver up 28 cents to $11.02. Gold fell slightly in Asian trading but has risen in early European trading to $780/oz. Gold's resilience is impressive considering the bloodbath seen in the oil pits where oil has fallen another 4% to below $92 per barrel (Light Sweet Crude Oil Future - Combined - OCT08).
Gold Gold and silver rallied Friday as the crisis on Wall Street deepened with gold up $17.80 to $759.80 and silver up 21 cents to $10.74. The rally continued in Asia overnight when gold surged more than $20 to over $785 before gradually giving up those gains in early trading in London.
Gold Gold was down again yesterday and fell to new 11 month lows at $742. Gold recovered in afterhours electronic trading and in Asian and early European trading today it has risen to over $755/oz. The dollar has fallen from recent highs against the euro of 1.3879 to less than 1.41 and oil has risen again on fears that Hurricane Ike may do more damage than expected to oil production facilities in the Gulf of Mexico.
Gold Gold's sell off continued yesterday and despite mounting concerns about the health of the U.S. financial system, gold has fallen to 11 month lows. After closing below recent support at $780, gold continued to fall in afterhours electronic trading before a slight recovery in Asian and early European trading.
Gold After initial falls, gold has rallied in morning trade in London as the dollar has given up some of its recent sharp gains. Gold's rise comes despite the further fall in oil prices but gold remains firmly in its recent narrow range between $780 and $840. The disconnect between the leveraged futures market and the physical bullion market continues with many wholesalers and retailers finding it hard to source and supply bullion coins and bars in the US and internationally.
Gold Gold surged at the open in Asia with news of the de facto nationalisation of the US’ mortgage giants in what amounts to the largest bailout in world financial history. It has since given up some of these gains in early trading in Europe due to more counter intuitive dollar strength which looks increasingly overbought. Gold and silver remain very oversold, especially after last week’s fall in prices. Both are now screaming buys on value terms. Silver particularly so - however it has suffered significant damage technically and may fall further in the short term.