Dismal Trading as Gold Outlasts Mayan Calendar

Posted: Dec 22, 2012 12:01 AM

It looks like it’s going to be a slack end to another dismal trading week for precious metals as the world stumps on past the end of the Mayan calendar. 

In early trading gold is up a meager $0.02 to $1,648.32 and silver is down $0.16 to $29.79 for a silver/gold ratio of 55.3. 

Gold and copper are the bright spot in industrial commodities today as platinum, palladium and crude all trade sharply lower.  Even though silver is trading lower, it’s doing slightly better than gold as evidenced by the rising silver/gold ratio. 

Many traders will head out for holiday vacations today, myself included, leaving the precious metals market at a 4-month low and no happy news to report on the horizon.  So, while I’m spending the next week at the beach demonstrating why men my age should not be attempting the boogie board, I’ll leave you with some holiday homework reading.  For those of you who haven’t already read it, start with Rich Dad's Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future and if you’re really convinced the economy is going to collapse, then I’d also suggest The Aftershock Investor: A Crash Course in Staying Afloat in a Sinking Economy

While I don’t necessarily agree with every investment point they make, it’s good to look at other points of view when charting the course that’s right for you.   Everyone’s financial situation and appetite for risk are different and there is no one-size-fits-all investment strategy that works in all cases. 

When it comes to precious metals over the holidays, I’ll be watching the silver sales.  I’m genuinely surprised to see silver under $30 an ounce this soon but I’m not about to let the opportunity slip by.  Gold is attractively priced as well, though somewhat higher than the heady buying days of August when gold prices hovered near $1,550 an ounce. 

Also keep in mind that gold and silver are not the only commodities currently hitting the skids; the downward trend is nearly across the board in industrial commodities.  What’s happening is big traders are shaving some of their derivative bets in commodities but the why of it is harder to determine. 

Sometimes it’s just not worth trying to divine the dark heart of Wall Street and a better strategy is  to take advantage when its trading whimsy puts gold and silver on sale.  That’s what I’m doing.  A safe and happy holiday season to all. 

Chris Poindexter, Senior Writer, National Gold Group, Inc