By: John Fisher
As I am writing this at 2:00pm Eastern, gold is up $17.50 to $1,407.60, a rise of 1.26%. Silver is up $1.25 at $33.93, a rise of 3.83%. Note: The U.S. and many other markets are closed, although electronic global markets are open as noted here: Global Trading Mon., 2/21/2011. Trading is somewhat “thin”, but still trading nonetheless.
These increases come on the heels of last week’s 2.1% rise in gold, 7.8% rise in silver and a decline of just over 5% for the gold silver ratio. So now what?
What cannot be disputed is the following:
- Gold is getting close to its previous all time high of $1,422.60
- Silver has made new all time highs and just keeps going. Silver has clearly broken out and should continue to move higher. Silver should run to $35 and possibly up to just this side of $40.
- The $40 psychological threshold will take some sustained effort to penetrate.
- Gold – $1,450 seems to be baked in the cake – quite possibly heading to $1,600.
- The gold:silver ratio stands at 41.47 at present, clearly below our swapping target of 48 or better. We probably swapped early, although not according to the charts at that time.
- The correction will come, and then we will swap back.
- Gold should begin to rise faster than silver as it has more room to rise – we will watch.
- The Dow continues to rise on the back of easy money as monetary expansion finds its way to Wall Street first.
- Yet, food prices are up 40%, agricultural land is up 80%, oil is up and more.
All Things Considered – John’s Commentary
The metals market is going to become increasingly wild. Swings will become greater. Trying to time when to get in and when to get out will be speculation at its best. Cheaper prices may come – and they may not. If you don’t have your position, are you willing to wait?
What to buy: Gold U.S. Arts Medallions, Austrian 100 Corona’s and Mexican 50 Pesos. In silver, 90% silver coin.
Quote of the day: “Capital gains taxes are wrong. Eliminate them. Capital gains taxes preclude using gold as circulating money.” – Jerry Jordan, Former President of the Federal Reserve Bank of Cleveland
