The Rain Keeps Coming Posted by James Randolph on December 11, 2008
The Rain Keeps Coming
December 10, 2008 – The gold price is at $812.20 per ounce and there was another nice jump today that continued into the after hours as well. Silver is shining for holders of the metal, with the spot price at $10.24, up another nickel in afterhours trading. Huge gains of 5.2% for the MS 65 Saint Gaudens Gold Coins in the common year versions have revamped the public’s interest.
International trade is the catalyst for today’s sour market reports as revolutionized countries lead by the United States cut spending dramatically in the last quarter of 2008. Exports from China have dropped dramatically and this seems to be reverberating globally. The World Bank, in a report released this week said that global trade was set to deadline by 2.1%, kicking the first deadline in seven years. With unsold goods piling up in ports from Long Beach to Shanghai, the World Bank report is likely to be revised within the month. This latest news is equally bad for small and large players in this global economy because industrialized countries will close their pocket book a little tighter deepening their own losses and the effects of this will hit developing nations like a tsunami.
Well, the sunshine in the storm is that gold is up on what has been a bumpy 6-month ride and many are hoping this rally holds…as I do. It’s concerning that the Bombay Bullion Buyers are seeking a pullback, however global turmoil may lift the metal in spite that major India buyers are looking for a spot price below $723.00 before doing their seasonal purchasing. Happy Investing!
Senior Gold Trader – Certified Gold Exchange