An Aussie Quickie
Gold 399.50 Silver 6.11 3pm Feb 3rd
Just a quickie today, sorry.
"If it goes to $360 and then to $3000 an ounce, what do you care? In a system where central banks can print an infinite amount of money, the one currency that doesn't rise as fast as paper money will appreciate in the long run" ... Marc Faber in Barons Round Table.
Gold again traded in narrow range today where we saw solid support in Asia and Europe with gold some $2-3 higher than NY close, but again the knives came out in NY.
India is still importing gold at a great rate, especially with Rupee at new highs. TOCOM in Japan has seen good public purchasing of gold in recent days on the fall below $400. Shanghai also has been active with premiums as high as seen since opening a few months back. Little people are buying real metal. The recent Bloomberg article on Indian gold imports falling, reference December numbers with gold at $410 and the rupee some 5% lower. Of course imports were lower. That why the premiums went bonkers. It just took India a little time to get used to the price. Same as the initial run up in Jan 2003 to 390...India's imports slowed to a trickle at $350....
I see the HUI got a wriggle on late in the day yesterday and closed reasonably strongly (for a market that's supposed to be on its death bed).Today has been a quiet one in the equities. Have a look at some of the ranges of some of the better metals companies around. Some are seeing 10-15% daily ranges. Great stuff if you can get 'em.
Will be an interesting time going into the March delivery. So much physical demand in the world versus so many short sales in the paper silver world. Maybe we will test lower again and wouldn't surprise to see a break down to $5.70 on a bear raid. Silver 200DMA is $5.20 which was strong resistance on the topside on the way up. In my opinion, physical demand must win out, sooner or later... it's just a matter of keeping in the game till then.
The Euro is at 1.2540 and gold is sub $400... did we get too far ahead of ourselves in the last few months, or are we being shown a lifetime bargain??
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