Gold Correction Still Evident - How Long?
David cried out to God asking "How long, O Lord?" He, of course, was referring to his enemies and sin in general. Knowing that each of us and everything is under the Sovereign Lord of all, we should learn to rest in knowing that He loves and cares for His people. He has told us that not a sparrow falls without His knowledge (actually, His will) and that he counts the hairs of our head. That is mind boggling to our finite minds, but it is true! David, properly, took his question to the correct person. God is aware of our doubts before we even perceive of them; therefore, we should never hesitate to share them with Him.
The volatility of the gold and silver prices over the last couple of weeks has been very great. For the last 24 hours, gold was as high as $551.40 at 9:51 (NY) this morning and as low as $543.60 at 11:17 last night. It is now $548.80. Silver is at $9.34. The volatility is still there and the direction is in doubt. Of course, it is still early in the trading day.
This from The-Privateer.com: "Speaking of the global financial system, as you undoubtedly know, Gold has had quite a week. It had a $US 19 fall on February 7 followed by a $US 14 rise on February 9 and a $US 14 fall on February 10. The $US 19 fall on February 7 came, not so coincidentally, on the first day of the Treasury's quarterly refunding auctions. It was inaugurated and pushed through in New York, the London AM Gold fix on the day was only $US 1.50 lower than the PM fix on the previous day. These refunding auctions are the LAST which can be done with the Treasury's debt limit at its current level of $US 8.184 TRILLION. The Treasury's Mr Snow is pointing out in a louder and louder voice that the debt limit will be hit at or about "mid February" and that the Treasury will run out of manoeuvre room under the present limit by "mid March".
This sudden Gold sell-off was an obvious ploy to make SURE that the refunding auctions went through without any "gremlins" getting in to mess things up. Mr Greenspan pitched in too, including in his first speech as a "private citizen" the contention that the rising Gold price was merely a result of heightened fears of terrorist attacks."
In the case of the precious metals now, none of us really know how long and how deep the correction will go. We can only speculate or maybe offer "educated" guesses. I really prefer to just examine the trend and take advantage of buying or selling opportunities as they present themselves to us.
For my situation, I have sufficient mining stocks in my portfolio. Therefore, I will not buy more until I see definite signs of a bottom and a turn upward from it. If I had no mining stocks, I would be slowly buying in as the prices became more attractive. I say slowly, because it does not appear to be a "sell the farm" or "mortgage the house" time in the market. It does not yet appear to be an all out buy time. In fact, such a time is difficult to spot. This is what I would do, you decide for yourself what you should do.
Here are some of the last trades: DROOY 1.56; CEF 7.22; NEM 54.94; HMY 12.72; SSRI 15.80. As one can see, the prices are down, but not as drastically as the price of the actual metals. The DJI is at 10920.17 and the S&P500 is 1264.12.
I still expect to see gold at $600 this year. However, it may take more time than it looked earlier. Once again, I believe it is easier to detect a long term trend than it is to predict short term swings in prices.
Your comments and suggestions are welcomed; rather, they are solicitated.
Best to each of your and yours, Doug
The volatility of the gold and silver prices over the last couple of weeks has been very great. For the last 24 hours, gold was as high as $551.40 at 9:51 (NY) this morning and as low as $543.60 at 11:17 last night. It is now $548.80. Silver is at $9.34. The volatility is still there and the direction is in doubt. Of course, it is still early in the trading day.
This from The-Privateer.com: "Speaking of the global financial system, as you undoubtedly know, Gold has had quite a week. It had a $US 19 fall on February 7 followed by a $US 14 rise on February 9 and a $US 14 fall on February 10. The $US 19 fall on February 7 came, not so coincidentally, on the first day of the Treasury's quarterly refunding auctions. It was inaugurated and pushed through in New York, the London AM Gold fix on the day was only $US 1.50 lower than the PM fix on the previous day. These refunding auctions are the LAST which can be done with the Treasury's debt limit at its current level of $US 8.184 TRILLION. The Treasury's Mr Snow is pointing out in a louder and louder voice that the debt limit will be hit at or about "mid February" and that the Treasury will run out of manoeuvre room under the present limit by "mid March".
This sudden Gold sell-off was an obvious ploy to make SURE that the refunding auctions went through without any "gremlins" getting in to mess things up. Mr Greenspan pitched in too, including in his first speech as a "private citizen" the contention that the rising Gold price was merely a result of heightened fears of terrorist attacks."
In the case of the precious metals now, none of us really know how long and how deep the correction will go. We can only speculate or maybe offer "educated" guesses. I really prefer to just examine the trend and take advantage of buying or selling opportunities as they present themselves to us.
For my situation, I have sufficient mining stocks in my portfolio. Therefore, I will not buy more until I see definite signs of a bottom and a turn upward from it. If I had no mining stocks, I would be slowly buying in as the prices became more attractive. I say slowly, because it does not appear to be a "sell the farm" or "mortgage the house" time in the market. It does not yet appear to be an all out buy time. In fact, such a time is difficult to spot. This is what I would do, you decide for yourself what you should do.
Here are some of the last trades: DROOY 1.56; CEF 7.22; NEM 54.94; HMY 12.72; SSRI 15.80. As one can see, the prices are down, but not as drastically as the price of the actual metals. The DJI is at 10920.17 and the S&P500 is 1264.12.
I still expect to see gold at $600 this year. However, it may take more time than it looked earlier. Once again, I believe it is easier to detect a long term trend than it is to predict short term swings in prices.
Your comments and suggestions are welcomed; rather, they are solicitated.
Best to each of your and yours, Doug
posted by Doug @ 9:07 AM
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