There
are few objects of monetary value that are more striking than a one
ounce gold or silver coin. The Canadian Mapleleafs are also strikingly
attractive. Everyone should have some locked away safely in a safe
deposit box or depository institution, and every now and then, go visit
them at the bank or wherever you have them stored and remind yourself
how enduring they really are.
Both
gold and silver have been under 'pressure' the moment that the New York
bullion banks began trading early Monday morning in the Far East
market. As Ed Steer wrote in his "Gold & Silver Daily " which you
can receive from Casey Research, "With the dollar in a 'rally' mode...
and the equity markets around the world heading for the dumpster... it
was a good bet that gold and silver were not going to allowed to be the
'go to' asset when 'the West' began trading in London."
Of course
today the equity markets rallied, oil prices shot up, and gold climbed
back above the $940 level. Silver fell below $14 but has remained
strong for most of the summer. Below is the latest silver chart
compliments of Kitco.com
So what's a gold and silver-loving boy to do right now (or girl for that matter)?
We
ought to be reminding ourselves why everybody should own some gold and
silver. We should be thankful that you can own a decent ETF like
GLD,SLV, IAU, or the new SIVR.
There are closed-end funds (which
now trade at rich premiums over their NAV) like the Central Fund of
Canada (AMEX: CEF) which report they have every ounce of gold and silver
accounted for and insured. You can learn more at their web site.
Folks like Ed Steer write things like "As I've said ad nauseum...
the price of gold and silver are determined by which bullion banks are
selling... or buying. And two U.S. bullion banks... JPMorgan [NYSE: JPM]
and HSBC [NYSE: HBC] USA both have grotesque short positions in place on
both metals and they [for now] can do as they please... and they are!
"It
was wall-to-wall ugly in the precious metals stocks as well... too ugly
to be repeated here again... as I'm sure you've already made careful
note of them already." Ed reminds us that the gold and silver markets,
like most every investment market today is "massaged" by the BIG
PLAYERS, and the good news is that means they can drive the price down
as easy as they can drive the price up.
Those who are
exceedingly patient can "buy low" with these institutional traders, and
if you believe that gold and silver is a symbol of wealth and a form of
"ageless currency" than you try to accumulate when there are
corrections and then you intend to sell them when the price gets
ridiculous. My question for you is, "If you haven't bought at least
some physical gold and silver, what are you waiting for?"
