It was another mixed week, with government currencies and long bonds lower, while stocks and commodities moved higher. Bitcoin, the free market online currency, ended the week up 26% at 849 mg, after recording another all-time high of 893 mg on Wednesday. If you have a time-horizon of a few years, don't let these prices scare you away… Bitcoin has plenty of upside, though it's volatility will be huge. My strategy is to keep position size small, but add a little every week.
The government issued currencies were mostly lower, led by the Japanese Yen, which fell 2% to close at 0.209 mg. The Euro was down 0.7%, and the CAD dropped 0.6%. The USD was unchanged at 19.7 mg, but is now 17.8% above its half-life curve, continuing to move deeper into overbought territory.
Stocks were higher, except for the HUI gold stocks. The big mover, once again, was the Nikkei Index, which rose 3.7% while the S&P 500 and the Dow Jones Industrials each rose 2.2%. The Gold Bugs Index fell 0.4%, setting another new post-2008 low of 6.72 g on Tuesday, and finishing the week at 6.89 g. The HUI's rate of descent seems to be slowing, so this looks like a good point to be adding to your collection of high-quality mining stocks. Don't worry too much about getting the exact bottom, just keep averaging in. A year from now, you'll look like a genius!
Commodities were all higher, led by Cotton, which rose another 3.9% to close at 17.1 mg/lb. Silver gained 2.8%, while Crude oil was up 1.4%. Platinum gained 0.6% to close at 31.23 g, now 0.4% above gold parity.