Market Update 8 Mar 2013


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.

Short term bonds (SHY) were unchanged in line with USD cash.  Long bonds (TLT) fell 3.5%, wiping out all of the prior week's gain and more.

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.

Table of prices in gold for week ending 8-Mar-2013

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