Saturday 9th February 2008 10:00 p.m.
A steady and uneventful week in gold until Friday when there was quite a pop uphill in the price, with the London PM Fix at $916.25. Back over $900 pretty much since Wednesday afternoon but the mini surge on Friday took some by surprise. And then, just as everything seened to be going OK, the IMF announces that it's going to sell some gold! The GATA boys will have something to say about that!
Kitco's John Nadler has been writing about the clearing price of gold being about $650 and we should expect 650-960 in 2008 with an average of about $740 (down from here but the $740 average would be more than in 2007). Of course, he might be right but, since then, the price have moved over 900 again. There seems to be considerable doubt in the gold community about gold's ability to stay at these 900+ dollar levels - but surely this is bullish? I can never work it out. I think it's best to ignore them all and form my own opinion and then trade on that basis. Jim Sinclair never reads the opinions of other traders. Well, he probably knows more than they do anyway, but it seems like a great idea to me.
Meanwhile, back at the ranch of Sarkozy, Trichet and their chums, gold sneaks to a new all time high in Euros! Remember, not everybody sees things in US dollars!
Even so, the action in gold looks very tame indeed when compared to the platinum market, where the price of an ounce of the rare silver coloured metal worn by so many as wedding rings these days scaled $1800 on power supply interruptions and shortages in South Africa, which produces the vast majority of the world's platinum from its mines.
Oh and by the way, little cheap silver, monetary metal of the common people, is well over $16 an ounce. What a pitiful price for such a beautiful metal; it seems almost criminally undervalued. A hundredth the price of plainum - almost. Still, silver is up well over 300% from its lows around 2000 (quadruple the price and a bit more) - outperforming gold and doing about as well as platinum. I can remember Pt at $450 and silver at under $4.