GOLD MAY REACH $1,200 AN OUNCE BY 2010!
Gold market action over the past five months has been absolutely stunning. From August 2005 to early February 2006, gold gained by 32%, climbing from $431 to a 25-year high of $572. The last time gold so gained strongly was during its legendary bull run from
August 1979 to January 1980, when the price skyrocketed from $300 to an all-time high of $850.
But just as important, recent months have confirmed that gold is now in a true international bull market. From 2002 to 2005, as our regular readers know, gold enjoyed what we call a secular U.S. bull market. During this period, the price in U.S. dollars but was relatively stagnant in euros, yen, francs, and other major world currencies.
Since August 2005, however,
GOLD has been gaining dramatically in most major currencies as well as in dollars. Between August 2005 and January 2006, gold gained 31% in euros, 37% in Japanese yen, 27% in Swiss francs, 28% in Chinese yuan, and 31% in Australian dollars. As we explained in our December alert, this shift to an international bull market opens the door to a much higher gold price, and means the current bull market has room to run for years to come with anticipated projected prices of
$1,200 to $1,800 an ounce by the year 2010!AUTHOR -GR.
MORE "GROUNG BREAKING" NEWS ON GOLD!!!
NEW YORK, April 13 - Gold futures in New York sagged on Thursday, touching a new low for the week, as speculative liquidation and positioning before a holiday weekend dominated early trading.
Prices hovered about $10 below the 25-year high hit on Tuesday above $608 an ounce, but gold stayed supported by a lack of aggressive short selling before the Easter weekend, amid worries over costly crude oil and U.S.-Iran tensions.
"We're just hovering on almost no volume," said a dealer at a precious metals trading desk in New York.
"We saw guys trying to get out, square their positions on concerns about weak longs, but I don't think you'd want to be short this market before the weekend. You're going to run a big risk of decreased liquidity at the end of the day as the London market tries to go home early."
New York metals futures markets will shut on Good Friday and reopen on Monday. London metals trading will be closed on Monday.
In other precious metals, silver, platinum and palladium all backpedaled quietly with gold.
By 10:13 a.m. EDT, June delivery gold on the New York Mercantile Exchange's COMEX division had lost $4.70, or 0.8 percent, to $596.60 an ounce, in a $603-$594 range.
On Tuesday, June gold surged as high as $608.40 -- a peak for futures prices since January 1981, extending its sizzling rally of the past five years.
Liquidation by speculators may slap gold lower before the holiday, market sources said, but the bull run was expected to continue afterward, fueled by robust investment demand.
Support should hold at $590, while resistance hovers above $605.00
"Activity is expected to be muted but firm as most global participants head into a three- or four-day weekend, and it is unlikely for them to build up significant short positions, especially with the Iranian situation balancing on a knife edge," Standard Bank said in a report.
Iran said it would ignore renewed international calls to halt uranium enrichment, casting a shadow over Thursday's visit for nuclear talks by the head of the U.N. atomic watchdog.
The United States and other Western nations accuse Iran, the world's No. 4 oil producer, of using its civilian nuclear program as cover to build weapons, a charge Iran denies. ( Isn't it strange how we blame Countries instaed of actual people for these types of things)?
Dampening some interest in gold was crude oil slipping off a recent high of nearly $70 per barrel to hold around $68, while the dollar gained against the euro after a report showed solid U.S. retail sales in March.
Estimated COMEX volume was a modest 10,000 lots at 10 a.m.
"While consolidation, and even a correction, is entirely possible at any time, we expect investors to use any weakness to add to positions," said John Reade, an analyst with UBS.
Spot gold sank to $592.30/593.10 an ounce, compared with $597.50/8.30 Wednesday in New York. London's afternoon fix by bullion dealers on Thursday fell to a distasteful $593.00.
UBS held its short-term targets for gold and silver at $610 an ounce and $14 an ounce, respectively, within one month, and at $630 and $16 within three months.
Author -GR.
THE WEEK FOR OUR DOLLAR. "POOR" THING!!!
FIGURES DON'T LIE, -BUT, LIARS FIGURE! COPY right--- GR.
On Wednesday, the USD benefited from the US trade data. The balance showed a smaller than expected deficit. Probably some type of number fixing going on here in my opinion!!! This came out at 65.7 bln. $ compared to the consensus 67.5 bln. $. This helped the USD to immediate gains. The EUR/USD pair sank from the 1.2140 area to the 1.2080 zone in a spikish movement. There, things ground to a standstill though and already a counter movement developed. Looking at the details of the trade balance the oil component is important and as prices again rose since February, the risk is of a re-widening in the deficit going forward. The EUR/USD pair went slightly higher and settled at the 1.21 zone. Also, now the attention will go to next week’s TIC data to see the net capital inflows into the US. The USD is looking ahead now to today’s data and is still being encouraged by what it expects to get. These are solid enough US retail sales, expected to show a 0.4% rise M/M. We stick to the recent word of caution on the euro. Even as the longer-term view is kept intact for a buy-euro-on-dip scenario, one cannot be blind to the fact that the euro momentum has been taken away near term by the ECB’s postponement for rate hike to June (instead of market expectations for May). This is temporary in our view though and the market should be trying to find a bottom in EUR/USD before re-launching a move to the year highs. Other data today of interest include the Michigan consumer confidence release for April. Also some Fed speakers take to the stage. Watch out for slowing trading as most markets are closed on Friday for Easter on Friday.The Dollar was in trouble ( and I'm sure will soon be again only much worse ), as the EUR/USD pair moved above the recent highs at the 1.22 zone. A test at the 1.2323-year highs failed and this now makes the picture less euro bullish at this stage, re-entering the sideways era. Support stands at 1.2068/.64 (38% retracement / yesterday low), at 1.2057 (LT MA), at 1.2040 (daily envelope), at 1.2019 (62% retracement), at 1.1977/.49 (previous lows) and at 1.1922 (uptrendline since low ’05). Resistance comes in 1.2143 (daily envelope), at 1.2168/.70 (yesterday high / breakdown hourly), at 1.2195 (breakdown daily) and at 1.2224 (previous MT reaction high). Sterling felt well supported early on as reports showed that the NASDAQ had taken a 15% share in the London Stock Exchange (LSE). This revived market speculation of a renewed takeover bid by the NASDAQ. Recall that they dropped their offer some 10 days ago. M&A news is one of the key drivers of sterling strength these past months. This should of course be mostly visible in GBP/USD as it involves a US versus a UK company and the prior offer of NASDAQ was cash… But the upmove in GBP/USD was countered of course by the USD strength after the US trade balance data, while this wasn’t the case in EUR/GBP, where much to the contrary the downmove in EUR/USD may even have panned out to drive EUR/GBP lower a swell It was a double whammy EUR/GBP as it were, which resulted in a sharp decline in the rate from the 0.6950 zone to the 0.6900 area. The UK Labour market report showed a mixed picture, with unemployed growing by 12.6 K, but average earnings including bonuses rising by 4.2% (from 3.6%). Overall, we did not see it as major item on the market. Everything has worked well together to drive EUR/GBP lower yesterday, but it feels a bit exaggerated nevertheless. Therefore, we keep the longer term bias in place for euro optimism, but prefer to wait for some bottoming out before rejoining the ranks of euro longs. Today, the UK BCC business survey is awaited (12.00 CET). The BoE looks at this survey’s components for guidance, so it could be of some market interest as well. The EUR/GBP pair has long been caught between the 0.67 and 0.70 areas, but last week has been really stress testing the upward boundary, but the break wasn’t confirmed and the pair is now back in the established trading range. Support stands at 0.6905 (low yesterday), at 0.6899/.90 (38% retracement / daily envelope) and at 0.6869/.66 (low 27 mar / daily Bollinger bottom). Resistance stands at 0.6931/.33 (broken daily uptrendline / daily envelope), at 0.6952 (yesterday high) and at 0.6971 (week high). USD/JPY moved slightly higher yesterday; the pro dollar mood was instigated by the smaller than expected US trade deficit. The pair made some minor gains towards the mid 118 area on the day. This morning, the weekly portfolio data showed continued net inflow into Japan at the start of the new fiscal year. This came as foreign investors poured more money in Japan than Japanese sent off abroad though. This may show though that Japanese are staying more at home with their money, investing in Japanese bonds as yields have risen at home. Also, Japanese tend to stay home in times of upped geopolitical stress, regarding the yen as a safe haven. The data had no impact on USD/JPY. China talk continues to make headlines. The White House keeps hammering away at demanding action from China to dampen the US trade deficit with the country. The US trade deficit narrowed in February, but in our view this is a yearly phenomenon linked to the Chinese New year. China is not showing much signs in letting the yuan become more flexible. Indeed, this morning the PBOC even set the mid point yuan rate surprisingly low at 8.0248 versus the dollar; This is sharply lower than the prior day, with 1.2% namely and it’s the largest drop on a single day since the revaluation. Knifes are being sharpened in the run-up to President’s Hu Jintao’s visit to Washington, that is clear. Today, the US retail sales will determine USD sentiment to a great extent and guide the intraday movement of the USD/JPY pair. A good release should see an attempt to move above 119, but I must say I regard this as very difficult to maintain. The fundamental bias is kept for the standing USD/JPY sideways picture between the 115 and 119 areas, as we see little movement near term in the relative rate differentials in the two zones. The pressure over the past days was oriented to the upside, but we feel some hesitance to go for a true test, also ahead of a longer weekend. Technically speaking, the USD/JPY pair is moving in a broad sideways range between the 119.40 and 115 areas. The pair is in the overbought area. Support stands at 118.18 (daily envlope), at 117.89 (MT MA), at 117.55/.41 (daily Bollinger midline / LTT MA) and at 117.21 (daily uptrendline). Resistance comes in at 118.61 (yesterday high), at 118.89/.92 (week high / daily Bollinger top), at 119.00 (daily envelope) and at 119.19/.39 (March high / year high).
THURSDAY, 13 APRIL 2006 CONSENSUS PREVIOUS US
14.30 Initial jobless claims (Apr 8) W/W 305K 299K 14.30 Continuing claims (Apr 1) W/W 2450K 2440K 14.30 Import price index (Mar) M/M Y/Y 0.2% -0.5% / 7.4% 14.30 Retail sales (Mar) M/M 0.4% -1.4% 14.30 Retail sales less cars (Mar) M/M 0.5% -0.6% 14.30 Business inventories (Feb) M/M 0.3% 0.4% 15.45 Michigan consumer confidence (Apr P) 89.0 88.9 Canada 14.30 Manufacturing shipments (Feb) M/M 0.4% -0.7% Japan 01.50 Domestic CGPI (Mar) M/M Y/Y A 0.0% / 2.7% 0.4% / 2.9% 01.50 Import price index (Mar) A-0.5%/22.3% 4.3% / 25.0% UK 12.00 BBC Q1 business survey France 08.45 CPI (Mar) M/M Y/Y 0.5% / 1.7% 0.4% / 1.9% 08.45 HICP (Mar) M/M Y/Y 0.5% / 1.8% 0.4% / 2.0% Italy 10.00 Trade balance (Feb) -2.8405B -4.162B Events 20.00 Early close US fixed income markets 19.00 Fed’s Kohn on economic outlook 21.45 Fed’s Bies speaks in Los Angeles 23.30 Fed’s Olson on US economy AUTHOR- GR...
Including OIL TOO! CURRENCY COMING.
AN EARLY GOOD MORNING!!!
Gold Rises in Asia as Record High Crude Oil Prices Fuel Inflation Gold rose in Asia as oil prices traded at a record high, bolstering the precious metal's appeal as a hedge against inflation.
Crude-oil and gasoline futures in Tokyo gained on concern supplies from Iran, the world's fourth-biggest oil producer, may be disrupted by a confrontation over the country's nuclear program.
Oil has gained 11 percent in New York this year, boosted by the Iranian standoff and by insurgent attacks in Nigeria, Africa's biggest oil producer.
``With crude oil prices this strong, gold is closing at good prices,'' Hiroyuki Kikukawa, deputy general manager of research at brokerage Nihon Unicom Corp., said by telephone today. He rates gold next week as a ``buy.'' Well of course he does, Many gold dealers call it a buy whether it is $300/ oz or $850/ oz they profit either way.
Gold for immediate delivery rose as much as $2.13, or 0.4 percent, to $598.60 an ounce. It traded at $598.29 as of 1:48 p.m. in Tokyo. Gold for delivery in June fell 0.2 percent to $600.10 an ounce on the Comex division of the New York Mercantile Exchange at yesterday's close.
Oil for September delivery rose as much as 620 yen, or 1.3 percent, to 49,040 yen a kiloliter
($65.73 a barrel) on the Tokyo Commodity Exchange, Asia's biggest energy futures market. The contract rose 0.5 percent to 48,650 yen a kiloliter at 1:50 p.m. local time.
Gold futures for February 2007 delivery in Tokyo rose as much as 22 yen, or 1 percent, to 2,315 a gram. The contract traded 0.8 percent up at 2,311 yen a gram, or $606 an ounce, as of 1:51 p.m. local time.
Author-GR
BUY GOLD NOW!!!
GOLD @ less than $600 an ounce is still an excellent investment for people with significant amounts of assets who want to protect themselves against the coming collapse of the dollar. The economy is in a deep recession wheather our so called leaders want to admit it or not. Oter Nations Have been buying at a staggering rate driving the price up lately and I don't think they are going to let off any time soon.
Over 1,000,000 American eagles a day are shipped to 176 Countries around the globe for delivery. This alone should tell you something about the value of
AMERICAN GOLD EAGLES. Other Nations do NOT trust our currency but they do trust our GOLD!!!
GOLD TODAY 585-590SILVER 12.40-12.80 AUTHOR GR.
BUY GOLD NOW!!!
GOLD @ less than $600 an ounce is still an excellent investment for people with significant amounts of assets who want to protect themselves against the coming collapse of the dollar. The economy is in a deep recession wheather our so called leaders want to admit it or not. Oter Nations Have been buying at a staggering rate driving the price up lately and I don't think they are going to let off any time soon.
Over 1,000,000 American eagles a day are shipped to 176 Countries around the globe for delivery. This alone should tell you something about the value of
AMERICAN GOLD EAGLES. Other Nations do NOT trust our currency but they do trust our GOLD!!!
GOLD TODAY 585-590SILVER 12.40-12.80 AUTHOR GR.
BUY GOLD NOW!!!
GOLD @ less than $600 an ounce is still an excellent investment for people with significant amounts of assets who want to protect themselves against the coming collapse of the dollar. The economy is in a deep recession wheather our so called leaders want to admit it or not. Oter Nations Have been buying at a staggering rate driving the price up lately and I don't think they are going to let off any time soon.
Over 1,000,000 American eagles a day are shipped to 176 Countries around the globe for delivery. This alone should tell you something about the value of
AMERICAN GOLD EAGLES. Other Nations do NOT trust our currency but they do trust our GOLD!!!
GOLD TODAY 585-590SILVER 12.40-12.80 AUTHOR GR.
BUY SILVER WHILE IT'S CHEAP!!!
I expect GOLD will most likely continue to dangle in the 590 to 600 range today. SILVER will probably come back to 12.75 and close somewhere between 12.60 and 12.80. It is still very possible for it to break 13.00 today (any day soon) for that manner, and I am still calling $15.00 before the end of the month. I really don't think most investors realize the squeeze that is about to be put on the market.
I recall buying SILVER @ 6.78/oz - I wondered if I had lost my mind. I thought maybe I had read too much of the literature of how silver was undervalued. I thought maybe GOLD was a far better investment vehicle. Being the strategist that I am I covered all the bases and did the math. I calculated my interest on current investments, my anticipated rate of return, my realizable net profits, (if everything went according to plan) which hardly ever happens in todays volitile marketplace, and figured what I would lose if SILVER fell to 6.00/oz. The numbers on paper seemed overwhelming. However, as every investor knows the increase by just 2.00/oz made this the deal of a life time.
The reason I chose to invest so heavily in SILVER was simple. I had already purchased plenty of gold at less than 400/oz. As a general rule when the economy goes to HELL the dollar goes down and GOLD goes up. I figured as long as I took physical posession of the silver I still had the chance to recover my losses if any, and I could still hold it for 20 years before it would even come close to eating on my interest.
Time has told the rest. I still beleive silver is an excellent buy.
Lets face it At 12-13.00/oz for a rare metal which has to be mined, refined and assayed, its simply CHEAP!!! How much will $13.00 US DOLLARS buy You TODAY? The answer is simple: not much.
I imagine it depends on your amount of wealth and life style.
If your a multi millionaire $13.00 is hopefully 1/10th of what you leave the waitress after a nice meal out with family or friends.
If you make 200,000 a year or less $13.00 won't come close to buying that new lap top you have wanted for your Birthday.
If you make less than 60,000 a year $13.00 will buy you
2 gallons of gas and a
combo meal at hardees.
My point here is simply to point out the fact -
the less you earn the more silver you need to own.The dollar will never gain in value but silver will be worth more and more dollers. COUNT ON IT!!! -----AUTHOR---GR.
Looks Cut AND DRIED TODAY!
I'll predict gold to move up to $608-610. And
SILVER to EASILY PASS 12.90 today and BREAK $15.00 before the end of the MONTH! I'll Be really surprised if it doesen't.
lets look for the plad to go over 400 by 5/10/ and platinum to go to 1100. in 10 more business days. Author GR.
spot for the day
Gold : LOW 590.00 High605.00
SILVER: LOW 12.22 HIGH $12.88
GR
How Can I Make The Most $$$ on Coins?
Excellent Question! One I wish people would ask more often!
In short by buying rarities and holding them for many years. There are some other ways which will be discussed later in MAY.First, Buy ONLY coins which are backed by a physical precious metal content (Gold or Silver) are the most commen. Your choices are almost endless!
Second, deceide on if you are going to collect for bullion or numismatic value. This makes all the difference in the world.
(a 2006 .999 silver American Eagle bullion coin can be purchased anywhere between $13.50-18.00 from a respectable dealer. -(A 1996-PCGS MS-70 .999 SILVER AMERICAN EAGLE is going to cost you a bundle and may be very hard to resell for what you might have to pay for it.Third, If possible buy only sight seen coins. Buying sight unseen coins is a real craps shoot. No manner what the sellers return policy when dealing with a significant amount of money no one like to make a sale and then have to "unmake" it.
DON'T FORGET THIS!!!!!!!!!Fourth, Speaking of return policies, Make sure the dealer offers a good one! A reputable dealer will not only sellyou coins but will also buy back any you do not like at the exact same price less shipping and handling whick is fractional compared to the price of the coins.
Fifth, Be sure to ask the Dealer Questions like "how many years have you been in business?'
2) Have you sold a lot of coins like this one?3) Do you have any other coins like this that are a little nicer?4) What is the red book value of this coin?ALERT!!!!! Any dealer who says they don't know-DON'T BUY FROM THEM ! ! ! The Red BOOK is Published each year and contains values for almost every coin known to the usa and phillipines and early colonial America.5) How much did this coin sell for 5 years ago? 10? EXTRA TIPS
DO NOT buy coins from late night TV shows. The markups are enormous to cover advertising costs. I've watched some of those shows they make me sick. I swear I've heard the words "CRAZY" and "CRAZY,CRAZY' and "CRAZY,CRAZY,AMAZING" so many times over and over again it almost made me start to beleive it was until I came to my senses and realized I was the only one who was almost the crazy one who was about to pay 2X the price for 1889 silver dollars I can buy from any reputable dealer! BOTTOM LINE WITH THE TV COIN SELLERS IS THEY ARE JUST A LOT OF HYPERS TAKING ADVANTAGE OF LONELY PEOPLE WHO CAN'T SLEEP AT NIGHT! ! !CAREFUL of EBAY. SomeTIMES YOU CAN GET SOME GOOD DEALS BUT ALWAYS GET INSURANCE AND PAY WITH PAYPAL!!!FORGET ESTATE COIN AUCTIONS. IF YOU HAVE NEVER BEEN TO ONE GO SOME TIME AND WATCH A 1948 AG4 walking lib 1/2 sell for $9.00! WE WILL ALL NEED TO SEE SILVER GO TO 44.00/oz to make a little on those at that price!!!LIVE SPOT FORECAST @ 7:20a.m. cst. ----------author-GR
Whose afraid of OIL PRICE$?
In reality, only about
3% of americans "really" CARE about the price of gasoline at the station. I mean it is somethingelse new to complain about besides the weather or their hair ,or their boss, or their spouse, or WHATEVER! Think about it. $3-3.75 fuel. So it maybe costs $15-$30 more a week to drive. If your raising a family your expenses go up by the thousands yearly and you never hear people agonizing about that-but thats just an acceptable part of life. We as Americans expect cheap fuel. Low Taxes, And high quality products at reasonable prices.
I'm sure if your reading this and are over 30 years old you know as well as I do those days are long gone forever. GOODBYE!
The simple truth is The world is not by any means close to running short let alone LOW on oil at all. The whole Oil-price monopoly game is strictly political. Unlike other commodities it really has NOTHING to do with supply and demand (although no one in authority will ever admit it)
Truth is Countries all have big egoes, the more oil-the bigger it is. USA motto: Buy oil-stimulate economy through commerce and trade. Iraq motto: sell oil (at their own convenience) and buy gold. Iran motto: sell Oil: Buy prospective international currency/GOLD/SILVER. The list goes on for a long time but you get the general idea.
Does this sound like a possible scenario? Political disturbance errupts in mid-East. George deceides to intervene. Oil prices rise steadily. Interest rates inflate like a hot air balloon. People stop spending money. Companies are forced to lay off large numbers of employees. Crime rates rise. National budget deficit climbs higher.
THE US DOLLAR BECOMES EVEN MORE WORTHLESS! PRECIOUS METALS SKY ROCKET!!!!!!!!!!
HIGH OIL MEANS HIGH GOLD, SILVER, PALLADIUM, AND PLATINUM!!!!
Working Around the Clock...
As the buyers race to get their orders for silver filled (physically, and on paper) the mining production companies are working aroung the clock and aroung the globe trying to
bring the silver to market at a price which has not been realized for nearly 2 decades.I certainly hope that these companies are not selling short silver. I beleive if they are they will eventually face bankruptcy. I'm sure it is just a manner of time before we nearly run right out of silver and all thats left is in the form of jewelry and maybe Mr. Buffet's and some other wise mens holdings.
As
I write this article the current spot on silver is $12.26 and moving UP. I have a really brave feeling about the metal market this week with all of the metals, GOLD, SILVER, PALLADIUM, and PLATINUM. I will wait until the N.Y. Market is a little closer to open before I reveal my inside information.
I was thinking about life today. What the meaning of it really is about. What a person should "expect" from life... And I Answer: Expect whatever you want, it is the choices and decisions you made yesterday, and make today, and make everyday that will determine your future in any aspect or sense of the word "life." The ONLY thing in LIFE you can know to "EXPECT" is that some day, -somehow,
YOU WILL DIE... YOU will only be REMEMBERED or FORGOTTEN for WHO you were. Not What you Did. Author-GR.
