asia and the metals - 2/17
am 17.02.2006 13:11:14 von ronogood morning, good people and a VERY happy friday to you and yours!
Well, yesterday was very nice all over - just sort of a warm tingly
feeling that starts at your toes and spreads all over your body. ;-)
And this definitedly translated into the precious metals market with
XAU yesterday closing at 137.75 +3.47. Presently the spot prices are
gold 546.80 +2.6, silver 9.42 +.09, platinum 1000 +2 and palladium 278
+4. See the nice article Ted linked about gold going reflexive. Note
that the last sentence talks about the silver ETF and if it should come
to pass, the silver market will go absolutely nuts. Now put on your way
back hat and think about 1980 when the Hunts tried to corner the silver
market. Gold doubled to ~850, but silver went up TEN FOLD to ~50. Hell,
Ive been bullish on silver more so than gold for years, but this
potential silver ETF really sweetens the pot. Anyone remember SLSLX
(silver mutual fund)? Anyway this is why I'm continually scratching and
digging for silver miners, particularly the smaller and micro cap stuff
that has enormous leverage. And from a mutual fund perspective, this is
also why I've always suggested precious metals funds rather than pure
play gold funds.
And moving over to asia, japan had a nasty profit taking sort of day
even though their growth numbers were great. The N225 dropped -2.06%,
Taiwan dropped -.15%, China dropped -.25% and India dropped -1.41%.
Only Korea and HongKong posted gains of 1.4% and .16%, respectively.
BTW, heard my first tout this morning saying the correction in gold is
over (probably means it's not, but . . . ). He was the one that
mentioned that the correction is over, the near term target is $600 and
his firm is actually shorting oil. Mentioned that since the commodity
bottom in 2001, oil has gone up in price 7 fold while gold has only
doubled. Ah, but who really knows? Captain Price.
let's all have a great day and finish this week strong with another
good day,
peace,
rono