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Two Ways To Play: Nothing Gold Can Stay

Terry Woo  Aug 29, 2008 8:50 am

Two Ways To Play: Nothing Gold Can Stay
 
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According to Bloomberg, an “unusually large” order wiped out Rand Refinery’s inventory of South African gold coins called Krugerrands. Rand, the world’s largest refinery, said the order was from a buyer in Switzerland and was for 5,000 ounces. It will take until September 3rd for the inventories to be replenished.

Physical demand for precious metals has risen in the past few weeks. Recently the US Mint suspended sales of one-ounce “American Eagle” gold coins, and Johnson Matthey also stopped taking order for 100-ounce silver bars because of this heavy demand.

In today’s trading, gold rose 4.60 to 834.70 an ounce, while silver gained +0.185 to 13.65. Professor Lance Lewis spoke of this physical demand in his column Get Out Of Gold?

From the Bull Pen: Those bullish on the yellow metal can continue to play the upside using the gold ETF (GLD); sell-stops below $80 may be an option.

From the Bear Cave: As a technical play, bears might consider Goldcorp (GG) for a downside trade. Buy stops can be set above $35.
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Comments (4) See All Comments »
08-29-2008, 10:57 am
.. After Bush jr. became president, gold went from $270 to $1,000... the U.S. Dollar's value went the same amount the other, opposite direction...

.. Basically, 5,000 ounces is only 5,000 coins, you mean that Krugerand refinery onl
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08-29-2008, 1:21 pm
I found this very strange. Not only did the "large" order wipe out everything they had on hand but also set back production? Excuse me?

Either it's a typo or something stinks in the wood pile.
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08-29-2008, 5:50 pm
Thank you, Mr. Woo. I got to appreciate me some poetry offa this title. I should give props to google also. "Dawn goes down to day". Noice.
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08-30-2008, 9:55 am
.. Of course, an order of 5,000 gold coins is about $4,000,000.00 now, in just gold, I'm not up on what a Krugerand goes for these days, so maybe it would upset a week's production schedule...

.. Usually simple bulk gold bars
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Terry Woo is an Editor at Minyanville Publishing & Multimedia, LLC.

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