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James Turk: Nominally rising Dow is actually falling in gold terms
Gold Jumps to 23-Year High; Silver Extends Gains
By Zach Howard
Reuters
Thursday, December 1, 2005
http://today.reuters.com/business/newsarticle.aspx?
type=tnBusinessNews&storyID=nL01229749&imageid=&cap=
NEW YORK -- Gold galloped to its highest price in almost 23 years on
Thursday, driven by further investment buying after it pierced the
key $500 an ounce level earlier this week.
The rally also sparked buying in the other precious metals, with
silver scaling an 18-year peak and platinum and palladium posting
gains as well.
Spot gold surged to a near-23-year high at $503 an ounce in New
York. It last fetched $503.00/503.75, compared with Wednesday's
close at $494.10/494.90.
"It's unstoppable," said Stephen Briggs, economist at SG Corporate
and Investment Banking. "The whole mindset of the market, not just
for gold, is just buy, but especially buy the dips."
Gold prices have doubled since touching lows of $254 in 2001 and
have gained more than 15 percent this year.
The market's fundamentals have been positive and investors were
diversifying their portfolios as currencies were not offering strong
returns, analysts said. Inflation worries also persisted given firm
oil prices.
"I think there is still room on the upside to go," James Moore,
analyst with TheBulliondesk.com, said of gold. "We are going to
probably test up to around $509-$512 before the Christmas holiday
period."
Some industry experts said gold might exceed its all-time high of
$850, achieved in 1980.
James Turk, founder of online gold trading Web site GoldMoney.com,
said his target for 2006 was $900.
He said that investors would increasingly turn to gold as a currency
alternative and also in response to growing inflation pressures, the
huge U.S. current account and trade deficits, and overall strength
in commodities.
At the COMEX division of the New York Mercantile Exchange, February
delivery gold jumped to $506.80 an ounce-- the priciest for
benchmark futures since February 1983. It settled up $7.60 at
$506.30.
But physical buying has fallen off in parts of Asia, the leading
consumer of gold, at a time when demand normally rises ahead of
Christmas and the Lunar New Year.
Silver surged to $8.51 an ounce, the highest since late 1987, and it
last fetched $8.51/53 in New York.
The metal, up about 30 percent so far this year, mainly has followed
gold's nearly relentless gains.
In New York futures trade, March silver shot up 21.7 cents to end at
$8.602 an ounce, after dealing from $8.29 to $8.62 -- the highest
since August 1987.
In other metals, spot platinum fell to a one-week low of $972 an
ounce in Asia before rebounding to $987/992 in late trading, against
the $975/980 last quoted in New York.
At the NYMEX, January platinum gained $14.30 to finish at $994.70 an
ounce.
Palladium rose to $261/264, compared with $256/260 an ounce in New
York.
March futures touched a 19-month peak at $273 before closing $8.40
higher at $268.40 an ounce.
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RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
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NEWS AND ANALYSIS
Free sites:
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http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.capitalupdates.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.goldismoney.info/index.html
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.goldpennystocks.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
Eagle Ranch discussion site:
http://os2eagle.net/checksum.htm
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
----------------------------------------------------
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Pat Gorman, Proprietor
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Metalguys@aol.com
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The Moneychanger
Box 178
Westpoint, Tennessee 38486
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Franklin Sanders
1-888-218-9226, 931-766-6066
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