No surprise here but gold is running on the Bear Stearns collapse..the chart above is courtesy of Kitco and should continue to update itself throughout the night. As such, depending on when you are reading it, the price of gold will be higher or lower than $1,030.
This is going to be one hell of a ride for gold and gold juniors. Here is a list of the metals companies represented by AGORACOM. It will take you no more than 10 minutes to read through the summary descriptions of each and find one or more that are best suited for your portfolio.
For those of you that are new to the gold dynamic and it’s connection to both the Bear Stearns collapse (micro) and the sub-prime issue (macro), here is a quick tutorial.
THE MICRO VIEW
An excerpt from this Reuters article:
The dollar sank to a record low against the euro on Monday (Asian markets) as investors said the acquisition of Bear by JPMorgan showed the seriousness of the problems faced by U.S. financial markets.
“Flight-to-quality buying is boosting gold as the market is losing faith in the dollar,” said Tatsuo Kageyama, analyst at Kanetsu Asset Management in Tokyo.
“The market is completely bearish on the dollar. The market is also very pessimistic about the dollar’s outlook.”
THE MACRO VIEW
You are going to need about an hour of reading but make the time and go through all of my recent posts in the Gold $1,000 category. Yes, I created a category for it.
Finally, you should also give the following blog post a quick read.
Regards,
George
Looks like the plunge protection team is out in full force this morning. Gold is currently at $1001, down from $1030 earlier after massive selling volumes since 8:00 am. However, I’m sure it will recover and go beyond $1030 soon enough.