Not So Jolly! Posted by James Randolph on December 10, 2008
Not So Jolly!
December 9, 2008 – 11:00PM EST: Gold rests at $780.60, up three dollars in after-hours trading. We saw a ten-dollar gain today in the gold bullion market and not much of a better stride for the PCGS certified gold coin market. Platinum jumped $21.00 for the day and looks flat in after-hours trading while silver prices added a modest .12 cents.
The DJIA dropped after two strong sessions, and the market saw a 242.85-point decline in today’s activities, closing at 8691.30. The poor market performance could be contributed to a whole slew of job losses. Added to the list of shrinking companies are Hutchinson, Praxair, NFL, Sony, Novellus and Wyndham, bringing the December cuts to well over 50,000. Not so jolly of a holiday season for many who must join the growing ranks of the unemployed. The World Bank Chief economist Justin Lin said “We know that the financial crisis now is likely to be the worst since the Great Depression”. Well, I don’t remember hearing of the big three closing their doors during the Depression so I have a feeling, Mr. Lin may be reevaluating that statement in short order. Thinking of the big three, it looks as if their pleas have been partially answered as Congress and the Bush administration have come to terms on a 15 billion dollar bailout. I give General Motors 45 days before they are carpooling to DC for more handouts, Chrysler may have 3 months tops and Ford could go 4 to 6 months at best.
Happy gold investing!
Certified Gold Exchange Senior Gold Trader