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Gold making bold moves

Gold just keeps on pouring it on. It jumped $18.40 yesterday. That brought the close to $878 a troy ounce, so whatever old high you use, $825, $850 or $875, we are now safely over all of them. We are on historic ground. Can $900 be more than just a coffee break away?

Yes, my tone is flippant. Movements are getting to be very large in short spans of time. That is dangerous for markets because they tend to become more unstable with larger incremental hikes in the price.

For long-term staying power, 20 trading days of $5 movements are better and more long lasting than $100 in five days. They also allow for better business conditions on coin show bourse floors. With the Florida United Numismatists bourse setting up later today, there can be no question that coin dealer behavior will be affected by any large swings in precious metal prices.

No question, though, it is the very large moves that get the adrenalin pumping and capture the headlines.

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2 Responses to Gold making bold moves

  1. Scott Barman says:

    The rise in precious metals occurs when there is a weakness in currency and currency-related investment instruments. Precious metals are "safer" when the dollar is getting beaten up on overseas markets. The weakened dollar will cause prices to rise for both the dealers and buyers. I wonder how the weak dollar and the need for the dealers to meet their costs and make profits will actually hurt sales at FUN?

    As for sustainability, I predict this rise will be sustained until the next president is sworn in on January 20, 2009.

  2. AH says:

    Dave,

    No one is dumping gold in India you are misinformed people are converting old gold to new gold. they are taking old jewellery and scrap gold and selling it and witht he proceeds are going in and buying new gold. I thought you might like to know this for whatever its worth

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