NY Spot Market close
Tue Feb 14, 2006 12:30 PM CST

By A.B. Dada

Chicago (Global Unanimocracy Network) -

The gold market tapped back up against the USD with the close of the NY Spot Market today, with gold selling for US$546.00 per ounce, up US$7.20. Gold is up 28.23% for the last 1 year period, and down 1.89% for the past month.

Gold futures are volatile, with jewelers replacing futures positions with buys in order to recoup supply from the holiday seasons and Valentine’s Day in the States.
Investment banks are greatly separated in opinion in the long term outlook on gold. All investment houses are opining that gold will be volatile in the short run.

NYMEX Crude Oil price is down to US$60.30, leaving a gold to NYMEX oil ratio of 9.0580.

In central banking news, china’s central bank says the January money supply was greatly accelerated due to the holidays, while they report that their central bank is not responsible for the high trade surplus. Brazil continues to sell off swaps and the Real sees a large boost from the trade as the central bank sold an additional $215 million. U.S. chairman Bernanke will report on the economic forecast tomorrow (Wednesday), with analysts believing he will raise the interest rate again to curb inflation. Thailand bonds gain value on demand by its central bank’s tighter money policy.

The silver market ended a touch higher against the USD with a close of US$9.30 per ounce, up $0.22 from yesterday’s close.

The silver to NYMEX oil ratio is 0.1545.

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and offers both news and opinion pieces at www.unanimocracy.com

Discuss this article here.

Happy Valentine’s Day! Today is usually a great day for jewelers, but with the high price of gold versus the various currencies, the jewelers local to me just aren’t selling as much. I spoke with some local mall stores over the weekend and they said that they’ve had to cut their margins rather than raise the price — which isn’t good for the long run as the overhead in the malls is outrageous.

I will be leaving for Europe and India today via O’Hare Airport, en route to the world’s gold markets, jewelers and buyers. The U.S. citizens look at gold as an outdated old man’s investment, not as a store of wealth and a show of ego. I am hungry to hear what real people all over the world have to say about gold — I’ll be posted updates from London, Warsaw, Zurich and Mumbai. If time allows, I’ll hit a few more cities and get some information to pass on.

Gold started a big drop over the past few days, just as I am about to leave. Those of you who read me regularly know that I planned the trip during this time frame in order to catch the market at a low — and it seems like it is happening. I had believed in US$500 gold in the beginning of this year, which happened, and I believed we’d see a 20% correction finishing toward’s February’s end, which is a bit too early to confirm. Almost every gold bug wants to see it skyrocket, I want to see it fall temporarily so I can buy in, and then hope to see it climb up through US$660 by year’s end.

Over the next 2 weeks on my trip I will start my articles regarding living on a personal gold standard, as well as some insights and opinions into what the world might look like if people trusted gold over paper, and if the manipulations were to change from central banking distortions to mine and jeweler distortions.

Sorry for the silence for the past half week, I’ve been very busy confirming all my baggage (each airline and country has its own weight and size restrictions) as well as visas, passport provisions, hotels and other costs! All looks good for a late afternoon take-off, and I can’t wait to start reporting.

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