Resolution – Win The 21st Century Cold War
Posted by Adam King on January 02, 2009
Resolution –Win The 21st Century Cold War
January 2, 2009 Gold drops – 5.70 per ounce with the current spot price at 875.70 and still moving lower. Silver has had a very good holiday, its up another 0.22 for the day with the spot price at 11.54 in lite trading.
An interesting ratio that could change over the next twelve months is the gold platinum ratio of 0.93, less than one percent difference between gold and platinum, in favor of platinum. In 2009 I believe we will see this gold platinum ratio moving with gold ending the year at least 10 percent above platinum, bringing the ratio to 9 in favor of gold. The change in this gold platinum ratio will occur do to less industrial use of platinum caused by severe cutback from automotive and other key sectors. At the same time I see gold riding the wave of market uncertainty it’s been on since 2001 and ending 2009 profitably above today’s levels.
No doom and gloom about the sour economy, in 2009 we have a much bigger concern with Russia and China starting to position the US in a revised three player cold war. This is coming at the worst time with a new US administration that needs to focus internally to repair the economy before it can afford the high cost of a 21st century three party cold war.
Started by Russia in 2008, expect this 21st century cold war to continue and accelerate through 2009 with China becoming a larger player towards the end of the year and they will need to invest internally as well. Also, with slowing factory orders from the US, China will avoid buying our debt. As a note to those of you wanting to aid the US in this promotional battle, increased debt or access to credit won’t help. Increased production and reduced expenses could help. Since we Americans lost 30 trillion off our balance sheets in 2008-increased production is what we all should add to our list of resolutions. Happy New Year! Now lets get to work!!!
John Halloran
SR Gold Specialist – Certified Gold Exchange, Inc
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US Gold Market
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