Thursday 10 April 2008

RED LETTER DAY #4! All records broken. 2008-01-10

Thursday 10th January 2008 8.37 pm: "RED LETTER DAY #4"

This is the day when all meaningful records seem finally to be definitively broken. Gold for February 2008 delivery reached a new record intraday high of $897.30 on the New York Mercantile Exchange (NYMEX), beating the previous record of $894.40 set on Wednesday. Feb. gold closed +$11.90 at $893.60 on the Nymex. Traders may be betting on interest rate cuts and a lower US dollar after Federal Reserve chairman Ben Bernanke spoke today.

Kitco quotes today's London Gold Fixes at AM $874.25 and PM $884.25 (the figues have changed since I looked an hour ago before dinner!) Not record beating! Yesterday's AM Fix was $887.85. Anyway, spot gold Bid/Ask prices are $891.90/$892.70 right now at 20:58 GMT, so gold is a whisker away from $900 after showing more strength today.

The last 6 London Fixes were all above $870, i.e. they were 873.25, 873.50, 887.85, 877.00, 874.25 and finally 884.25 this afternoon.

The only thing that worries me is that on Jim Sinclair's website www.jsmineset.com, he has had some links to major British broadsheet newspapers, 'The Establishment' press, who have been referring to gold as 'the ultimate currency' and talking of it in positive terms after disparaging it for the last 25 years. What can this mean? Is it the top? Do 'the powers that be' want to do a 'distribution' and sell off to the unwitting public at the top as they did in 1980-81? Or are they wanting to get the next stage of the bull market under way because they are already well positioned? Or are they just stating the patently obvious, that the mony and credit system is probably going to collapse (is going to be allowed or made to collapse) and they are just mentioning gold's new records so they don't look too stupid in the future when historians sift through the news archives? Maybe they just need something to write about.

Who cares what they think anyway? I never read the papers.

No comments: