"You can fool some of the people all the
time, and all of the people some of the time, but you cannot fool all of
the people all the time." Abraham Lincoln
Friday was an interesting day in the precious metals futures market, to say the least. Silver and Gold prices traded sharply lower in overnight dealings, but then found a strong bid as the sun rose on Wall Street. The rally that followed was exceptional!
Gold traded down to an intra-day low at $1130.40/oz and then rebounded sharply to an intra-day high at $1179.00 before ending the extended session at $1178.00 (+3.16% on the day). Silver traded down to an intra-day low at $15.04/oz, then rallied to an intra-day high at $15.88 before ending the extended session at $15.81 (+2.58% on the day). In morning dealings, Silver futures actually stopped trading at one point because of an Exchange software glitch when prices reached $15.88/oz, up 0.84 cents/oz or +5.60% from the intra-day low. I think the timing of the trading "glitch" in this market is noteworthy!
Precious metals mining shares, which have been absolutely battered recently, also rebounded sharply on Friday. The most popular Gold Mining Shares ETF, symbol GDX, advanced 8.31% on Friday. The Silver Mining Shares ETF jumped 7.87%. Stories of shortages in the global Silver coin market are now commonplace, and the U.S. Mint announced to dealers on Thursday last week that it had actually "sold out" of all its Silver Eagle 1-ounce coins (temporarily, of course). Despite sharply lower Gold and Silver prices over the last several months, sales of Gold and Silver freshly minted coins are "through the roof" according to the latest sales figures from the U.S. Mint.
Was Friday, November 7th, a significant day in the precious metals market? Most definitely! Was Friday THE turning point in a major new bull market for this unloved and under-weighted investment class? I think so!
You cannot fool all of the people all the time! Gold and Silver are REAL currency! Government paper money is what? Perhaps the answer is as simple as "Fiat" currency, which is easily debased and often subject to massive manipulation! Which "currency" would you like to own in this environment right now? "Real" or "Fiat"? Is the recent surge in Gold and Silver coin purchases one measure of how "people" are now voting on this issue? YES!!
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| Gold ETF (symbol GLD) Monthly Chart |
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| Gold ETF (symbol GLD) Weekly Chart |
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| Silver ETF (symbol SLV) Monthly Chart |
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| Silver ETF (symbol SLV) Weekly Chart |
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| U.S. Dollar Index (DXY) Weekly Chart |
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| U.S. Dollar Index (DXY) Monthly Chart |
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