Fear Is Leaking Out of Gold Market

Source:

"Recent trading ranges remain in place."

Fear has been slowly but surely leaking out of the gold market since the metal reached an all-time pinnacle last month. Spot gold started the day with a $4.50 drop and was quoted at $1206.80 per ounce. Silver fell 14 cents to open at $18.11 the ounce.

Meanwhile, platinum and palladium only showed minor price negative trends as well, with the former shedding $6.00 to $1519.00 and the latter slipping $1.00 to the $463.00 level. At the end of the day, the recent trading ranges remain in place for the complex—especially gold—as price supporters and profit-takers duke it out each time gold reaches for either extreme.

In 'signs of the times' news, Bloomberg reports that the common man is donning the rugged outdoor gear last seen during the Klondike gold stampede and is heading for "them thar' hills" in search of riches. While shovels and picks are still available at your neighborhood Home Depot, the rush to dig gold out is as fevered as the shrill talking suits on financial channels calling for a moon landing in gold prices. Membership in the Gold Prospectors Association of America has exploded with a 93% gain in 2008. That's some 62,000 diggers, folks, even if they only find less than an average of $50 per day of hard work out there.

Comparisons with the Internet mania of the late 90's and/or the real estate frenzy of not too many months ago are inevitable. Searches for 'mining claims' on eBay yield results that offer ones selling as high as $50K. The new 49ers are not down at Candlestick Park. They're up in Eureka.

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