Munching Prawns and Watching Yacht Races
Hoofy had better still be getting me some nice jewelry, Laurie!
Gold $440 Silver $6.79 Monday 20th December , 12am Sydney
"As democracy is perfected, the office of president represents, more and more closely, the inner soul of the people. On some great and glorious day the plain folks of the land will reach their heart's desire at last and the White House will be adorned by a downright moron." - H.L. Mencken (1880-1956)- American Journalist.
G'day. Jets by 16, I think I said... did anyone else grab a wedge of that juicy pie? Never in doubt, that one. I was more confident that the Jets would win by 16 or more than I was in gold closing above $440 for the weekend. Looks like any fears regarding either entity were unfounded. Silver on the other hand disappointed again. That's cool with me 'coz silver is a very independent little bugger and goes nuts when IT wants to, not when we expect. But, something seems like it is bubbling under the surface in silver.
Gold copped a few early on Friday but again shrugged off the paper barrage and closed a very respectable $441 and change. By rights, it should probably have touched $432 again having cracked $435ish but the physical market stepped in and whooshka, it was back above $440. Seems a familiar observation these days. Looks to me like we're gunna close the year up close to the highs, especially with the world's most active physical markets open and trading while we're all sucking down cold beers, munching prawns and watching the the Sydney to Hobart yacht race. Now there's a bunch of madmen - that is one helluva boat-trip!
India is still happy hoovering it all up on these dips and Minyan Mike sent me through the following late on Friday which is certainly worth sharing. Thanks Mike.
Tejaswini Ramesh, a TV anchor-turned-Congress MP from Karnataka, pleaded with Lok Sabha Speaker Somnath Chatterjee to be allowed to put a supplementary question on gold prices, giving an unusual reason. Gold, she opined, was an effective instrument for women to exploit men with.
"It is a very good investment for citizens, but the prices have become too high for ordinary people to afford," she pointed out.
"We request the government to reduce the gold prices so people can invest money for the future of the country."
Many in the House burst out laughing, including the Speaker who only a day ago was anguished and had threatened to resign over allegations of dictatorial attitude.
Gold has many uses but "exploiting men". Fair dinkum. That's a new one. Best we guys keep it to ourselves then. Screw getting her that gold jewelry you were thinking about for Christmas. Buy her a nice something else and pocket a gold bar for yourself! Also, I believe the woman is saying it's unaffordable for ordinary people to afford. But, there are over 100 million "non-ordinary" people, a burgeoning upper and middle-class, who have the capacity to deal with this price rise. The market is telling us so!
I hear there is some dissension in the ranks at the Bundesbank regarding proposed gold sales. Apparently a weekend newspaper carried a story revealing that 6 of the 8 decision makers aren't comfy dumping ANY gold let alone more than the Washington accord permits. I dunno as haven't seen the article but it wouldn't surprise me. Even if they do agree to sell, the effect will be negligible, IMO. Sure, the announcement might shake the paper gold market a bit, but for reasons I touched on last week, I reckon it's a non-issue these days. The reasoning behind such action will make interesting reading as would any that supports any such sale. I guess we'll have to wait for the official minutes to be released in 5 years or whenever it is that they let the population know what important decisions they've made on their behalf. Not much downside for gold in either outcome, IMO.
There is a silver article that I had sent to me. If this has any legs, it could be something else indeed. Silver looks a bit cheap to me, notwithstanding Mexico's renewed interest, just a thought and not advice.
The Amex Gold Bugs Index (HUI) is still flatlining but I think it is building some strong legs for a new run up to the 260+ levels. Not until the New year probably, but an inevitability, IMO.
Expected ranges next 24 hrs - midnight Sydney
Enjoy the day ...
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