Gold was higher in the far East on Monday, peaking there at $988, then fell off into the late morning, rallied one last time to just past the noon hour, then fell into the red and stayed there, finishing at $974.60/oz., down $2.00. Overnight, gold has edged higher.

Platinum pushed higher in the far East and remained there, trading within a $15 range all day and, though ending at the low end, still added $21, to $1209. Overnight, platinum is slightly higher.

Silver peaked at $15.95 in London, declined sharply into the late morning, then followed gold with a brief rally and another pullback, to close at $15.59, down 20 cents. Overnight, silver is trending higher. (Click here for charts)

The precious metals were probably looking to start June with a bang, as a follow-up to May’s strong finish but, with the exception of platinum, it didn’t happen. Aficionados had

Gold had a boring, if mildly positive, day on Friday, as many traders left their desks to get a jump on the Memorial Day weekend, locking the metal up in a tight range between $950 and $960, leading to a finish at $956.50/oz., up $2.60. For the week, gold added 2.8%.

Platinum fell off in the far East, rebounded to the New York open, then traded choppily through the rest of the day, to little ultimate effect as it ended at $1153, up $4. For the week, platinum was up 4.7%.

Silver was also off in Hong Kong, but rose sharply in Europe, peaking at $14.81, then traded inside a 20-cent range for the rest of the day, closing in the middle at $14.69, up 14 cents. For the week, silver gained a robust 5.3%. (Click here for charts)

The precious metals did well, holding onto their gains for the

Gold was flat until Hong Kong closed on Thursday, then it pushed higher, peaking at $925 during the first hour of the New York session, but that was it as it fell back into a $910-$915 trading range and stayed there through the Globex, finishing an uninspiring day at $910.00/oz., down $1.00. Overnight, gold is pushing higher.

Platinum soared as high as $1165 in early New York trading but then it too fell off, eventually getting stuck between $1140 and $1150, and ending at $1145, up $10. Overnight, platinum is little changed.

Silver prolonged its string of positive days and, although it too peaked around 9 a.m., after pushing past $14 to $14.13, it rebounded from a fall to $13.70 to take back a chunk of the lost ground and close at $13.79/oz., up 6 cents. Overnight, silver is trending higher. (Click here for charts)

While yesterday was pretty

Gold declined from Hong Kong through the first hour of New York trading on Monday, shedding about $15, rallied back until the noon hour, but then fell right through the Globex to finish at $906.20/oz., down $6.80. Overnight, gold has fallen off.

Platinum really hit the skids, plummeting straight through with little interruption, ending at $1140, down $35. Overnight, platinum is sharply lower.

Silver fared much better than its sister metals and, even though it too peaked in early far East trading, it managed to hold above $13 all the way through the Comex, before easing on the Globex to close at $12.90/oz., up a penny. Overnight, silver has fallen steeply. (Click here for charts)

Precious metals fanciers couldn’t have been too disappointed with yesterday’s action, given that silver held steady and gold fell only modestly in the face of both a rising dollar and slumping oil.

Most of the market

It was no surprise to me to see gold and silver get sold off the moment that Globex trading began in New York at 6:00 p.m. Wednesday night. Sydney and Hong Kong both open for Thursday morning trading shortly after that, and this gives New York the opportunity to set the tone for trading in the Far East if they wish to do so. The Far East is not a big market [Don't forget that 90%+ of all gold and silver trading volume is during Comex hours in New York] and it can be shoved around quite easily, as volume is never very heavy. Note the bottom of the Kitco graph [below] where it shows the times that various world gold markets are open.

Carefully note that the New York-based U.S. bullion banks can enter the global market for 23 hours and 15 minutes every day…not just in the Far

Gold was slightly lower until the mid-point of London trading on Tuesday, but headed modestly upward from there to the close of the Comex, at which point it went near-vertical, soaring $20 on the Globex to finish at $857.50, up $20.60. Overnight, gold is slightly lower.

Platinum bottomed at $830 around mid-morning, then pushed higher through both the Comex and Globex, edging past gold and ending at $863, up $28. Overnight, platinum has been flat.

Silver followed a path very similar to gold’s, with an even more stunning spike on the Globex that carried it well past $11 to a close at $11.21, up 58 cents. Overnight, silver is trending lower. (Click here for charts)

Tuesday was a smashing follow-up to Monday’s solid start to the week for the precious metals, as all three kicked into high gear late in the day, following the Fed meeting.

Whatever downward pressure was exerted

Gold sagged from $740 at the London open to as low as $732 in the first hour in New York, spiked back up to $743 at the noon hour, fell back below $735 at the close of the Comex, then pushed higher on the Globex to finish a very up and down day little changed at $737.70, up $1.60. Overnight, gold is slightly lower.

Platinum bottomed at $810 right at the New York open, then inched its way higher through most of the day ending near its intraday high at $830/oz., up $28. Overnight, platinum has been flat.

Silver was near flat to the New York open, fell off 20 cents in the first hour, but then went near-vertical, adding 60 cents to peak above $9.70, eased into the Comex close, but pushed higher again on the Globex, finally closing at $9.59/oz., up 36 cents. Overnight, silver is trending lower. (

Source: Adrian Ash, Bullion Vault  09/08/2008
“…My God, this is the time. If everyone wants gold we’re all going to be ruined, because there is not enough gold to go around…” – J.F.K. to the Fed chairman, Aug. 1962

ONCE UPON A TIME money meant gold (and ever less silver), freely exchanged between private individuals looking to buy and sell, invest and spend.

But then came the 20th century.

There had been experiments with “fiat money” before. Most famously in 13th century China, 18th century France and Civil War America, paper was issued as currency without gold (or silver) to back it. There was no gold content or value, just the promise – dictated by emperors, kings and army commanders – that other people would accept it in payment.

The foot-soldiers would make sure of that. So you’d better accept it, or else.

Hence the name “fiat” – from the Latin – meaning “Let it …