When gold prices continue to break record after record, and the Federal Reserve and Ben Bernanke continue to cooperate by printing more and more money, gold miners like Agnico-Eagle Mines (NYSE:AEM) and Eldorado Gold (NYSE:EGO) are great ways to participate in the ongoing gold bull market.
Why companies like Agnico and Eldorado Gold are so good, is they are among the leading companies in controlling costs.
This is important because the more costs are under control, the more flexibility a company has, and the more they're able to profitable operate under conditions where gold prices aren't as high.
Agnico and Eldorado are far from the only gold miners positioned strongly, but they are good examples of well-run companies which should do well in strong and weaker economic conditions.
Those gold miners that are heavily leveraged and don't have solid cost controls in place, will only do well as long as gold prices do well. Once that is over, they could have value drain off extremely quickly.
This isn't to say it is expected anytime soon, but over the long term solid gold companies with operational costs under control will be prepared for whichever way the market goes, and have more opportunities to grab up weakened companies for future growth.
Low debt and low costs will do more for gold investors than just about anything else, all other things, especially gold prices, being equal.
Showing posts with label Gold Bull Market. Show all posts
Showing posts with label Gold Bull Market. Show all posts
Tuesday, November 9, 2010
Monday, November 8, 2010
Will Potential Gold Bubble End up Being a Silver Rally?
While I don't think a gold bubble is coming any time soon, as there are too many elements involved to support the ongoing increase in the price of gold unrelated to the herd mentality, which will as some time kick in, but probably not for a few years, if not more, depending on the economy and actions of central banks around the world.
What that means for silver investing is the incredible heights gold will probably reach will start to weigh on a large number of investors who simply can't afford to invest in it any longer, or at least perceive they can't.
That inevitably leads to a run on silver from an investment perspective, and should drive the price of silver up to astronomical levels, although that will take time.
Of course silver is driven by industrial use as well, which will also continue to drive up the price of silver because existing mines won't be able to keep up with supply.
Add these two scenarios together and you see a perfect storm for silver prices to rise, and silver has been already making the beginning of a number of major moves reinforcing its coming surge.
What that means for silver investing is the incredible heights gold will probably reach will start to weigh on a large number of investors who simply can't afford to invest in it any longer, or at least perceive they can't.
That inevitably leads to a run on silver from an investment perspective, and should drive the price of silver up to astronomical levels, although that will take time.
Of course silver is driven by industrial use as well, which will also continue to drive up the price of silver because existing mines won't be able to keep up with supply.
Add these two scenarios together and you see a perfect storm for silver prices to rise, and silver has been already making the beginning of a number of major moves reinforcing its coming surge.
Wednesday, September 15, 2010
George Soros Clueless on Gold and "Ultimate Bubble"
George Soros seems to be clueless on gold and his obsession with it being the "ultimate bubble."
Soros doesn't seem to understand the reason there's support under gold and why that will continue for a long time.
He said to Reuters, “I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever,” although reluctantly admitting it's the only bull market at this time.
One reason Soros asserts this is he's big government socialist, and has out-of-the-mainstream views on politics and life.
Gold interferes with his worldview in that regard, and even though he has millions invested in gold, continues to hammer at it as if it's poised to plunge at any time.
There's no problem with Soros saying gold is an ultimate bubble, as someday in the far future that will eventually play out, especially when investors and the average person on the street all pour their money into it without knowing why, and far past the reason it is going up at this time.
That's the overall practice of fast-moving stocks and bull markets of any kind throughout history.
Where he's completely wrong is in he says gold isn't safe. Gold is safe, but it of course, like anything else, depends on how someone is investing in it, and the degree of overall exposure of their overall portfolio.
The price of gold is going up because of economic weakness and disastrous policies and practices of central banks and governments around the world.
And with the recession continuing on, or at minimum the global economy slowing down significantly, quantitative easing is ready to begin again, which will drive up the price of gold even more.
Of course it's not going to last forever, as Soros says, but that's obvious.
But that's like saying if you live in certain parts of California you're going to experience an earthquake sometime.
Everyone knows that, but you simply need to be prepared for that inevitable moment and respond accordingly. You don't stop living and life because it may happen.
Danger can come anywhere and any time, and safety is always an issue, even when traveling to a neighborhood store.
So to suggest gold isn't safe is like saying living in California isn't safe. What's the point?
As long as the fundamental reasons for the price of gold continuing to rise remain in place, gold prices will continue to rise. It's as simple as that.
when the macroeconomic climate changes, then we all need to remain vigilant with our gold investments.
Gold isn't even close to being in a bubble at this time, as nothing in the global economy has changed to make it be a concern. It will eventually happen, but that is probably a number of years away.
Until governments stop the printing presses and their stimulus plans, gold will continue its upward ride.
Soros doesn't seem to understand the reason there's support under gold and why that will continue for a long time.
He said to Reuters, “I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever,” although reluctantly admitting it's the only bull market at this time.
One reason Soros asserts this is he's big government socialist, and has out-of-the-mainstream views on politics and life.
Gold interferes with his worldview in that regard, and even though he has millions invested in gold, continues to hammer at it as if it's poised to plunge at any time.
There's no problem with Soros saying gold is an ultimate bubble, as someday in the far future that will eventually play out, especially when investors and the average person on the street all pour their money into it without knowing why, and far past the reason it is going up at this time.
That's the overall practice of fast-moving stocks and bull markets of any kind throughout history.
Where he's completely wrong is in he says gold isn't safe. Gold is safe, but it of course, like anything else, depends on how someone is investing in it, and the degree of overall exposure of their overall portfolio.
The price of gold is going up because of economic weakness and disastrous policies and practices of central banks and governments around the world.
And with the recession continuing on, or at minimum the global economy slowing down significantly, quantitative easing is ready to begin again, which will drive up the price of gold even more.
Of course it's not going to last forever, as Soros says, but that's obvious.
But that's like saying if you live in certain parts of California you're going to experience an earthquake sometime.
Everyone knows that, but you simply need to be prepared for that inevitable moment and respond accordingly. You don't stop living and life because it may happen.
Danger can come anywhere and any time, and safety is always an issue, even when traveling to a neighborhood store.
So to suggest gold isn't safe is like saying living in California isn't safe. What's the point?
As long as the fundamental reasons for the price of gold continuing to rise remain in place, gold prices will continue to rise. It's as simple as that.
when the macroeconomic climate changes, then we all need to remain vigilant with our gold investments.
Gold isn't even close to being in a bubble at this time, as nothing in the global economy has changed to make it be a concern. It will eventually happen, but that is probably a number of years away.
Until governments stop the printing presses and their stimulus plans, gold will continue its upward ride.
Tuesday, June 22, 2010
GOLD BUBBLE? WHAT BUBBLE?
by Toby Connor
We continue to hear pundits describe gold as a bubble. Certainly it will turn into a bubble before this is all over but we are hardly in the bubble stage yet. In order for a bubble to form you need the public to come into an asset class. The public is pretty dim and it can take 15-20 years before they "catch on". It took 18 before they noticed the tech bubble.
Once they do start to "get it" we will have about a year to a year and a half as gold enters the parabolic stage before the bubble pops. See the Nasdaq chart below from late 98 to March of 2000.
At the top there will be lines outside the the local coin dealer waiting for the next shipment of gold to come in.
At the top 7 of 10 billboards you see driving down the highway will have something to do with precious metals.
At the top the guy standing next to you in the grocery store will tell you how many thousands of dollars he made last month off his gold coins.
At the top smart money will eventually come to their senses and realize that true value (profitable companies making the necessities for life on Earth) are being given away for pennies on the dollar to purchase a shiny metal that really has no intrinsic value.
Of course not!
I think we might be getting close to the Nasdaq 1998 level, but gold is hardly in the runaway parabolic stage where it rallies over 100% in a year. Not to mention that none of the other signs I noted above are even remotely present yet.
But no one needs to worry about a bubble just yet. We need to have at least one more serious correction similar to what happened in `08 or in tech stocks in 1998 to wash out bullish sentiment before we can start the final parabolic run into a true bubble top.
If I had to guess I would say that will occur during the next liquidation event which should be due in mid to late 2012 as the stock market collapses down into the third leg of the secular bear market.
That should mark the next four year cycle low and possibly the nominal bottom for the secular bear market in stocks that began in March of 2000. I expect the selling pressure at that climactic event will also drag gold down into the correction that should separate the second phase (what gold has been in since early '06) from the third and final bubble stage. Gold will quickly recover, like it did from the last selling climax, and when it does this is when we will see the public begin to panic into gold.
Then and only then can we start talking about a bubble.
At the moment I think we are about to enter the second leg of an ongoing C-wave advance that began in September of last year. I'm expecting this leg to take gold to the $1400-$1500 level before experiencing a major D-wave correction.
I'll be monitoring the advance on a daily basis to keep subscribers appraised of where gold is in its intermediate cycle. When I think we are getting close to the top of the C-wave I'll warn subscribers to take profits and exit the precious metals market so as not to get caught in a D-wave correction.
Gold Scents
We continue to hear pundits describe gold as a bubble. Certainly it will turn into a bubble before this is all over but we are hardly in the bubble stage yet. In order for a bubble to form you need the public to come into an asset class. The public is pretty dim and it can take 15-20 years before they "catch on". It took 18 before they noticed the tech bubble.
Once they do start to "get it" we will have about a year to a year and a half as gold enters the parabolic stage before the bubble pops. See the Nasdaq chart below from late 98 to March of 2000.
At gold's top, half of your neighbors will be buying gold (not selling like they are doing now).
At the top 7 of 10 billboards you see driving down the highway will have something to do with precious metals.
At the top the guy standing next to you in the grocery store will tell you how many thousands of dollars he made last month off his gold coins.
At the top everyone will have become convinced the dollar is toilet paper and will only continue to decline until it has become worthless.
At the top the population will believe that we have to go back on a gold standard. By the way, a gold standard never stopped any country from debasing its currency. In ancient Rome they clipped some of the gold out of the coins. Roosevelt confiscated and arbitrarily revalued gold in the 30's. A gold standard will not prevent a government from trying to get something for nothing by debasing the currency.
At the top stocks will be universally hated and gold universally loved. In reality, stocks will at that time, represent true value. Much more so than a shiny metal with virtually no industrial uses.
At the top smart money will eventually come to their senses and realize that true value (profitable companies making the necessities for life on Earth) are being given away for pennies on the dollar to purchase a shiny metal that really has no intrinsic value.
Here is a chart of the Nasdaq followed by a chart of gold. You tell me, does gold look like a bubble yet?
Of course not!
I think we might be getting close to the Nasdaq 1998 level, but gold is hardly in the runaway parabolic stage where it rallies over 100% in a year. Not to mention that none of the other signs I noted above are even remotely present yet.
But no one needs to worry about a bubble just yet. We need to have at least one more serious correction similar to what happened in `08 or in tech stocks in 1998 to wash out bullish sentiment before we can start the final parabolic run into a true bubble top.
If I had to guess I would say that will occur during the next liquidation event which should be due in mid to late 2012 as the stock market collapses down into the third leg of the secular bear market.
That should mark the next four year cycle low and possibly the nominal bottom for the secular bear market in stocks that began in March of 2000. I expect the selling pressure at that climactic event will also drag gold down into the correction that should separate the second phase (what gold has been in since early '06) from the third and final bubble stage. Gold will quickly recover, like it did from the last selling climax, and when it does this is when we will see the public begin to panic into gold.
Then and only then can we start talking about a bubble.
At the moment I think we are about to enter the second leg of an ongoing C-wave advance that began in September of last year. I'm expecting this leg to take gold to the $1400-$1500 level before experiencing a major D-wave correction.
I'll be monitoring the advance on a daily basis to keep subscribers appraised of where gold is in its intermediate cycle. When I think we are getting close to the top of the C-wave I'll warn subscribers to take profits and exit the precious metals market so as not to get caught in a D-wave correction.
Gold Scents
Saturday, June 19, 2010
Jaguar Mining (NYSE:JAG) in Bullish Mode?
Jaguar Mining (NYSE:JAG) has been struggling some over the last 52 weeks concerning its share price, as it has held back while many gold miners have moved up with the gold prices, which continue to set records.
It's possible the lagging stock may be ready for a bull move, as it reached over its 50-day moving average on Friday, while also generated more interest, as volume reached 1,452,678 shares, far above the 3-month average of 1,039,440. The moving average for the stock has been $9.88.
Jaguar ended the week at $10.11, and in after hours trading stands at $10.30, as of 1:43 PM EDT on Saturday.
There hasn't been any significant news to suggest reasons for a bull move, so it's more a matter of whether or not the share price is reflecting its true value, and it definitely could be undervalued when measured against the performance of some of its competitors.
Gold closed Friday at an all-time record level of $1,256.50.
It's possible the lagging stock may be ready for a bull move, as it reached over its 50-day moving average on Friday, while also generated more interest, as volume reached 1,452,678 shares, far above the 3-month average of 1,039,440. The moving average for the stock has been $9.88.
Jaguar ended the week at $10.11, and in after hours trading stands at $10.30, as of 1:43 PM EDT on Saturday.
There hasn't been any significant news to suggest reasons for a bull move, so it's more a matter of whether or not the share price is reflecting its true value, and it definitely could be undervalued when measured against the performance of some of its competitors.
Gold closed Friday at an all-time record level of $1,256.50.
Monday, June 7, 2010
Robert Prechter Maintains 40 Percent Gold Correction
At the Reuters Investment Outlook Summit in New York, Elliott Wave president Robert Prechter maintained gold could fall 40 percent in a major market correction.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Prechter is trying to weasel out of his projection in January that gold will plunge by 40 percent, saying it couldn't continue on because of deflation and too many institutions and people owing it.
Of course the assertion of deflation is ridiculous, and unless you trust the government numbers, which they massage and tweak to their benefit, deflation hasn't been around yet, and only once in decades has their been a deflationary year.
There is the crowd that redefines inflation and deflation in order to say there is deflation, but they can't be taken serious, and for everyday items people buy in America, there hasn't been deflation, unless want to pick out a couple out of the bunch to justify your point.
The weasel aspect I mentioned was when he said gold was being stalled by technical momentum and since 2006 the increase has subsequently been experienced at a lower rate, which he covered his butt by saying, "That is not a guarantee of change but a sign that one is likely."
Anything is likely, so that's irrelevant.
What must be taken into consideration is the sovereign debt crisis in Europe, the Chinese battling inflation and the so-called jobless recovery in America, which isn't one, as the recent job numbers revealed, where the government has propped up the jobs market by hiring people, while the private sector has been holding back, not trusting in the assertions of the government, as they're the ones on the street experiencing the realities of the economy on a local, regional, national and international basis.
That means investors will continue to seek safety, and there is nothing safer than gold at this time, and there is a growing lack of faith in paper currencies around the world, with gold really being the only alternative.
I think the idea of gold being over-bought is where Prechter misses it, as that may be true in general among institutional investors, but the vast majority of people on the street haven't even entered into the gold market yet, and until that happens, there's not going to be a bubble, let alone one that bursts, neither will there be a major correction to the degree Prechter calls for, although there will always be some corrections in any market.
Demand for safety and concern over inflation is what is primarily driving gold prices up, and that isn't going to change or correct, based on what Prechter calls "technical indicators," which to me is a bunch of BS and mumbo jumbo.
The idea that 98 percent of people are positive about gold is another somewhat irrelevant statement. Obviously that 98 percent would have to have been culled from a small group of a certain type of investor.
What he meant by that is if everyone is positive, he's going to run the other direction. In normal investing circumstances that's not a bad strategy, but with gold in these economic circumstances it doesn't make sense.
Gold isn't going to correct to that level at this time because there is simply nothing out there to make it happen. Everything is pointing to instability and ongoing recession.
And if you believe there has been a weak recovery, then call what's coming a double-dip recession.
Either way, gold prices are going to continue going up, and while there will be sell-offs and taking of profits like a couple of weeks ago, I don't see anything that will change the price of gold going up for years into the future.
Now that doesn't mean there will never be a correction, but it's not going to be for some time, and it won't happen until there is a real bubble market similar to the housing bubble, where clueless people bought homes to make some quick money, not understanding they were at the top of the ponzi scheme. Gold isn't anywhere near that, and there is too much inflation and geo-political situations to change that in the near term.
Friday, June 4, 2010
Deutsche Bank (NYSE:DB) Sees Gold Rally
Michael Lewis, head of commodities research at Deutsche Bank AG (NYSE:DB), said today gold prices could surge another 36 percent beyond its all-time high of $1,249.70 in May.
One of the catalysts Lewis sees adding to the already bullish gold conditions is Asian central banks buying gold for the first time in two decades.
Lewis said, “Prices can still go up a lot further from here. We have new sources of demand with central banks and ETF flows still very strong.”
Gold could reach as high as $1,700 an ounce within the next year, according to the analyst, saying the debt and budget deficits around the globe are continuing to weaken paper currencies.
Gold hit $1,218 an ounce, a $10.20 an ounce increase as of 3:40 PM EDT on Friday.
One of the catalysts Lewis sees adding to the already bullish gold conditions is Asian central banks buying gold for the first time in two decades.
Lewis said, “Prices can still go up a lot further from here. We have new sources of demand with central banks and ETF flows still very strong.”
Gold could reach as high as $1,700 an ounce within the next year, according to the analyst, saying the debt and budget deficits around the globe are continuing to weaken paper currencies.
Gold hit $1,218 an ounce, a $10.20 an ounce increase as of 3:40 PM EDT on Friday.
Wednesday, May 19, 2010
Gold Prices Fall on Profit-Taking
There's no doubt we're in a short period of a correction of gold, which is always going to be inevitable as the gold bull market continues.
All this means is those selling the gold aren't investors but traders, and they're foolishly selling their positions to draw out a little of the profit coming from the quick rise in gold prices over the last week or two.
Gold is now well off its recent record all-time high of $1,249.50, down and hovering around $1,191 an ounce off and on during the trading session.
This is a good thing in my view, as it gets rid of the players, while leaving the gold investors in the market. It's also a great opportunity to buy some more gold with the decline, although some think it could drop by another $20 an ounce before it begins its upward climb again.
We don't worry about trying to exactly time the bottom though, as it's a good way to lose a lot of money when the price of gold starts to rise, which will cost you more if it's too late. It's better to just invest when it's dropped a good amount like now, than attempt to squeeze out every penny you can from the downward move.
Either way though, this correction was expected, and you should expect more as players enter the market and bid up the price over a relatively short period of time. They will eventually exit the market, and we go back to the underlying fundamentals, which will continue to drive the price of gold up for a long time to come.
All this means is those selling the gold aren't investors but traders, and they're foolishly selling their positions to draw out a little of the profit coming from the quick rise in gold prices over the last week or two.
Gold is now well off its recent record all-time high of $1,249.50, down and hovering around $1,191 an ounce off and on during the trading session.
This is a good thing in my view, as it gets rid of the players, while leaving the gold investors in the market. It's also a great opportunity to buy some more gold with the decline, although some think it could drop by another $20 an ounce before it begins its upward climb again.
We don't worry about trying to exactly time the bottom though, as it's a good way to lose a lot of money when the price of gold starts to rise, which will cost you more if it's too late. It's better to just invest when it's dropped a good amount like now, than attempt to squeeze out every penny you can from the downward move.
Either way though, this correction was expected, and you should expect more as players enter the market and bid up the price over a relatively short period of time. They will eventually exit the market, and we go back to the underlying fundamentals, which will continue to drive the price of gold up for a long time to come.
Monday, May 17, 2010
George Soros' SPDR Gold (NYSE:GLD) Stake Lowered
Earlier in the year George Soros had mentioned gold was a bubble ready to burst, although he failed to include the idea that he had made a huge investment in gold interests, including SPDR Gold Trust (NYSE:GLD).
In a recent required 13F filing, Soros revealed that his Soros Fund Management had cut back on his position in SPDR Gold by 9.6 percent, probably from concerns over the high rise in price of the safe haven metal.
This is probably a mistake on Soros part, but we'll wait and see.
I think the thing that Soros misses is the regular guy on the street hasn't entered the gold bull market yet, and that should protect the upward movement in the gold prices from being a bubble.
A bubble usually occurs in any investment sector when those that don't understand the fundamentals of an investment finally decide to invest in it when it is already full priced.
This normally shoots the price of an investment up, when the support for it isn't there, ultimately creating a bubble. That's what happened in the housing market, as people continued to bid the price of homes up thinking there's no such thing as a ceiling on value.
It doesn't seem that gold has entered this phase at all yet, and even if it did, the fundamentals are there to justify it. There will of course be many corrections on the gold bull market journey, but that won't be a bubble.
Market conditions and the unprecedented spending of money and budget deficits ensure gold will continue rising in price for years to come, with the occasional correction along the way.
Eventually there will be a bubble in gold, just like anything else that has gained favor over a period of time before those that are clueless enter into the fray.
Gold is probably years away from that happening, and the economic conditions will ensure it won't be bursting for any time soon, and will continue on its upward climb.
In a recent required 13F filing, Soros revealed that his Soros Fund Management had cut back on his position in SPDR Gold by 9.6 percent, probably from concerns over the high rise in price of the safe haven metal.
This is probably a mistake on Soros part, but we'll wait and see.
I think the thing that Soros misses is the regular guy on the street hasn't entered the gold bull market yet, and that should protect the upward movement in the gold prices from being a bubble.
A bubble usually occurs in any investment sector when those that don't understand the fundamentals of an investment finally decide to invest in it when it is already full priced.
This normally shoots the price of an investment up, when the support for it isn't there, ultimately creating a bubble. That's what happened in the housing market, as people continued to bid the price of homes up thinking there's no such thing as a ceiling on value.
It doesn't seem that gold has entered this phase at all yet, and even if it did, the fundamentals are there to justify it. There will of course be many corrections on the gold bull market journey, but that won't be a bubble.
Market conditions and the unprecedented spending of money and budget deficits ensure gold will continue rising in price for years to come, with the occasional correction along the way.
Eventually there will be a bubble in gold, just like anything else that has gained favor over a period of time before those that are clueless enter into the fray.
Gold is probably years away from that happening, and the economic conditions will ensure it won't be bursting for any time soon, and will continue on its upward climb.
Thursday, May 13, 2010
Newmont Mining (NYSE:NEM), Kinross Gold (NYSE:KGC). Agnico-Eagle Mines (NYSE:AEM) and Yamana Gold (NYSE:AUY) Expected to Rise
Newmont Mining (NYSE:NEM), Kinross Gold (NYSE:KGC). Agnico-Eagle Mines (NYSE:AEM) and Yamana Gold (NYSE:AUY) look like they're set to rise, based on call buying.
Aggressive calls by traders shows they believe in the short term that these particular gold mining stocks are going to go up.
Because of the aggressive rise in the price of gold futures, there will no doubt inevitably be a correction, and gold mining companies, for the most part, will participate in that correction, even so, gold has support now, and even when gold corrects, there will be a continuation of the gold bull market well into the future, no matter what the short term swings are.
Aggressive calls by traders shows they believe in the short term that these particular gold mining stocks are going to go up.
Because of the aggressive rise in the price of gold futures, there will no doubt inevitably be a correction, and gold mining companies, for the most part, will participate in that correction, even so, gold has support now, and even when gold corrects, there will be a continuation of the gold bull market well into the future, no matter what the short term swings are.
Saturday, April 24, 2010
Marc Faber Remains Gold Bull
Marc Faber, publisher and editor of The Gloom, Boom & Doom Report, says the gold bull market will continue to run, and paper currencies will lose value as the printing presses of central banks around the globe are running non-stop.
In an interview with Kitco News, Faber said this, “If you have $100 today, you buy that much less in terms of a basket of goods and services then you did ten years ago – paper money has already lost a lot of value and in my view it will continue to lose value. The price of gold will adjust on the upside according to the loss of the purchasing power of money.”
Gold is being considered more and more a currency by a growing number of people, the reason it has been decoupling from the U.S. dollar and the usual inverse relationship between the two not performing as usual on a consistent basis.
Faber agrees, not only looking at gold alone as a currency, but other precious metals as well.
In an interview with Kitco News, Faber said this, “If you have $100 today, you buy that much less in terms of a basket of goods and services then you did ten years ago – paper money has already lost a lot of value and in my view it will continue to lose value. The price of gold will adjust on the upside according to the loss of the purchasing power of money.”
Gold is being considered more and more a currency by a growing number of people, the reason it has been decoupling from the U.S. dollar and the usual inverse relationship between the two not performing as usual on a consistent basis.
Faber agrees, not only looking at gold alone as a currency, but other precious metals as well.
Wednesday, April 14, 2010
GFMS Ltd.: Gold Bull Run Over
In an incredible statement, consultancy firm GFMS Ltd. announced in a press release that the gold bull run was over, and it'll probably play out over the next year or so.
Of course that's cowardly in itself, as they give themselves enormous wiggle room if gold keeps on going up in price to say it's taking some time to wind down.
In the press release, GFMS chairman chairman Philip Klapwijk said this, "We're certainly in the end-game now, although that could still take a year or more to play out. But after that, it's difficult to see how we can avoid a hefty drop in prices if we want to boost jewelry and trim scrap to bring the overall market back into equilibrium."
So the trillions in paper money printed around the world, increasing inflation and place of safety aren't factors any longer in the price movement of gold? That can't even be taken seriously.
Now that doesn't mean there won't be a correction, as there is always that as part of any commodity or investment that rises quickly. But to announce the gold bull run is over is the height of ignorance to me, and must have been thrown out there to garner attention rather than to be taken seriously.
But when the gold bull run continues, people need to remember it was GFMS that said it was over, and determine from there if they want any other input from the company.
Of course that's cowardly in itself, as they give themselves enormous wiggle room if gold keeps on going up in price to say it's taking some time to wind down.
In the press release, GFMS chairman chairman Philip Klapwijk said this, "We're certainly in the end-game now, although that could still take a year or more to play out. But after that, it's difficult to see how we can avoid a hefty drop in prices if we want to boost jewelry and trim scrap to bring the overall market back into equilibrium."
So the trillions in paper money printed around the world, increasing inflation and place of safety aren't factors any longer in the price movement of gold? That can't even be taken seriously.
Now that doesn't mean there won't be a correction, as there is always that as part of any commodity or investment that rises quickly. But to announce the gold bull run is over is the height of ignorance to me, and must have been thrown out there to garner attention rather than to be taken seriously.
But when the gold bull run continues, people need to remember it was GFMS that said it was over, and determine from there if they want any other input from the company.
Wednesday, April 7, 2010
Gold Continues to Rise on Falling Euro
Gold up again on weakening euro
With investors continuing to look for an alternative to the euro, gold is rising in reponse to that increasing demand, rising above $1,150 an ounce today, although standing slightly below it as I write.
This is the fifth session in a row gold has made gains, and it stands at the highest levels it has reached in 2010.
Reports from Europe that its gross domestic product remained flat in the fourth quarter caused investors to seek opportunities elsewhere, with gold being the chief beneficiary.
With investors continuing to look for an alternative to the euro, gold is rising in reponse to that increasing demand, rising above $1,150 an ounce today, although standing slightly below it as I write.
This is the fifth session in a row gold has made gains, and it stands at the highest levels it has reached in 2010.
Reports from Europe that its gross domestic product remained flat in the fourth quarter caused investors to seek opportunities elsewhere, with gold being the chief beneficiary.
Monday, April 5, 2010
Junior Gold Stocks Ready to Soar?
Junior Gold Stocks
After taking the latest economic hit or correction, gold has held on strongly, finding support at around the $1,100 an ounce level. There doesn't seem to be much chance that it'll change any time soon, and gold mining stocks, especially junior gold stocks, could be ready to explode upwards, as they lag the overall gold market, even though gold continues to be a long-term play.
For example, the larger gold stocks are down about 15 percent, while gold itself is up 30 percent. But for junior gold stocks, they are still down 60 percent, with a lot of room to increase, which many of them assuredly will going forward. This is as of the latter part of 2007, when noting the numbers above.
The gold bull market will be around for some time, and even though there is the possibility of interest rates being increased in the latter part of 2010, that shouldn't be near enough to overcome the economic pressures which continue to drive the price and value of gold up.
Junior Gold Stocks
After taking the latest economic hit or correction, gold has held on strongly, finding support at around the $1,100 an ounce level. There doesn't seem to be much chance that it'll change any time soon, and gold mining stocks, especially junior gold stocks, could be ready to explode upwards, as they lag the overall gold market, even though gold continues to be a long-term play.
For example, the larger gold stocks are down about 15 percent, while gold itself is up 30 percent. But for junior gold stocks, they are still down 60 percent, with a lot of room to increase, which many of them assuredly will going forward. This is as of the latter part of 2007, when noting the numbers above.
The gold bull market will be around for some time, and even though there is the possibility of interest rates being increased in the latter part of 2010, that shouldn't be near enough to overcome the economic pressures which continue to drive the price and value of gold up.
Junior Gold Stocks
Thursday, April 1, 2010
Gold Ready for a Rally?
Gold about to rally?
After the tremendous downward pressure on gold prices recently, the fact that gold came through holding tight to the $1,100 an ounce mark may imply it's ready for a rebound, and may jump up on a more sustainable basis on the higher end going forward, based on the support it received during the Greece sovereign debt crisis, even when it was pressed down some because of the weakening euro.
Even the usual inverse relationship with the U.S. dollar was interrupted at time by gold moving up in unison with it, seeming to say investors consider it as much of a currency as any paper money.
I think gold made a statement over the last month, and for gold bulls it was a bold and brash statement that it wasn't going down, and after holding during that time, we may just see a continuation of the gold bull market soon afterwards.
The only thing I see stopping that from happening is if an unexpected crisis again emerges in Europe from another nation in danger of defaulting on its debt, and that could push people toward the U.S. dollar again and weaken gold. Other than the unexpected like that, it appears gold is ready to surge higher in the near future.
After the tremendous downward pressure on gold prices recently, the fact that gold came through holding tight to the $1,100 an ounce mark may imply it's ready for a rebound, and may jump up on a more sustainable basis on the higher end going forward, based on the support it received during the Greece sovereign debt crisis, even when it was pressed down some because of the weakening euro.
Even the usual inverse relationship with the U.S. dollar was interrupted at time by gold moving up in unison with it, seeming to say investors consider it as much of a currency as any paper money.
I think gold made a statement over the last month, and for gold bulls it was a bold and brash statement that it wasn't going down, and after holding during that time, we may just see a continuation of the gold bull market soon afterwards.
The only thing I see stopping that from happening is if an unexpected crisis again emerges in Europe from another nation in danger of defaulting on its debt, and that could push people toward the U.S. dollar again and weaken gold. Other than the unexpected like that, it appears gold is ready to surge higher in the near future.
George Soros and Secret Gold Bull Market Goes On
Secret Gold Bull Market
One of the reasons the assertion that gold is an ultimate bubble by George Soros makes little sense, is he possibly doesn't understand what's really going on in the markets, or he's being the sly fox he is as far as investing goes.
For example, Soros was saying this on one side of his mouth while investing millions in gold mining companies and gold ETFs. So I think Soros was attempting to do some manipulating of the minds there in order to move the market and thoughts in the direction he wants it to go.
The reasoning behind this is Soros almost assuredly knows the general public hasn't been investing in gold, and know very little about it and don't have much interest in it.
Until they come on board in hoards, there's little chance of a gold bubble bursting, as there isn't a bubble without the public entering into the gold investing market.
In reality, most of us who follow gold closely sometimes aren't aware that what is common and everyday to us is mysterious and unknown to the average investor, at least in the Western world.
By the time the average investor comes in, which still may take some time, gold will be much higher and it'll be taken to levels that aren't sustainable and above market prices. That's when we'll have an ultimate bubble.
Until that time, the fundamentals, along with the foibles of central banks and governments around the world are what we need to be concerned with watching.
Once the general public starts to enter the market, that's when we need to be weary. That hasn't happened yet, and I think things will have to get worse, or they get more educated as to why gold is important, before they do come in in droves.
Unfortunately for the uneducated in gold, they'll experience something similar to the housing market because they just can't leave the herd mentality and do the type of research which puts them ahead of the game.
Secret Gold Bull Market
One of the reasons the assertion that gold is an ultimate bubble by George Soros makes little sense, is he possibly doesn't understand what's really going on in the markets, or he's being the sly fox he is as far as investing goes.
For example, Soros was saying this on one side of his mouth while investing millions in gold mining companies and gold ETFs. So I think Soros was attempting to do some manipulating of the minds there in order to move the market and thoughts in the direction he wants it to go.
The reasoning behind this is Soros almost assuredly knows the general public hasn't been investing in gold, and know very little about it and don't have much interest in it.
Until they come on board in hoards, there's little chance of a gold bubble bursting, as there isn't a bubble without the public entering into the gold investing market.
In reality, most of us who follow gold closely sometimes aren't aware that what is common and everyday to us is mysterious and unknown to the average investor, at least in the Western world.
By the time the average investor comes in, which still may take some time, gold will be much higher and it'll be taken to levels that aren't sustainable and above market prices. That's when we'll have an ultimate bubble.
Until that time, the fundamentals, along with the foibles of central banks and governments around the world are what we need to be concerned with watching.
Once the general public starts to enter the market, that's when we need to be weary. That hasn't happened yet, and I think things will have to get worse, or they get more educated as to why gold is important, before they do come in in droves.
Unfortunately for the uneducated in gold, they'll experience something similar to the housing market because they just can't leave the herd mentality and do the type of research which puts them ahead of the game.
Secret Gold Bull Market
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