Gold has now backed off to trade at approximately $877/oz; the reasons behind this fall are attributed to the rise in the US Dollar and the fall in the price of oil.

The dollar occasionally puts in a mini rally to a fanfare of this it the start of a major rally back to its once mighty status (read more…)

Hecla Mining Company has been a good vehicle for us in terms of generating profits through short-term trades. We now see this silver producer as being oversold and have therefore decided to buy today at an average price of $9.61. (read more)

The merry month of May has almost gone but not without tossing us a surprise rally which commenced on the 1st of May and put on $75/oz before hitting the brakes yesterday when it fell back to close at $906.15/oz.

The old adage of sell in May and go away appeared to reverse for most of the month. Maybe they went early this year as gold dropped a $100/oz in the second half of April (read more…)

Citing gold as a safe haven, a weakening dollar and inflationary pressure the bank has raised its forecast from $850 to $915 for 2008.

It’s not like us to be sarcastic as far as banks are concerned, but gold stands at $926/oz and we are almost half way through the year, so HSBC are duly awarded this weeks medal for bravery (read more…)

On the 3rd April 2008 we bought Yamana gold for the purpose of making a short-term trade when we wrote:

“In anticipation of a bounce in the price of gold and a possible short-term rally we decided to BUY Yamana Gold Incorporated today for an average price of $14.43 and we are hereby signalling a BUY on AUY for a short-term trade.”

“We sold 50% of our holdings at $16.50 on the 31st January 2008 and we have now bought back these shares at $14.43.”

We now see this mini rally in Yamana coming to an end so we are closing this trade (read more…)

As we can see from the chart the USD did try to consolidate and put in a short rally and the technical indicators have taken a downturn so it now looks like dollar has run out of steam. Inversely gold has responded and moved higher (read more…)

Aside from our main investments in gold and silver, we recently bought a short position on the US financial sector via an ETF called Ultra Short Financials ProShares, (AMEX:SKF)

However we have now closed our position (read more…)

Gold closed at $905.00 last night, little change from our update on the 5th April 2008 when it was $913.70, having paid a visit to the $850 level in the mean time. Gold has experienced a fall of around $150/oz followed by a bounce of $50/oz or about a third of the fall. Despite the euphoria surrounding gold we still see some consolidation and sideways movement over the summer months. Gold is still $80 or so above its 200 day moving average so take care this current rally could be short lived. However, there will be some precious metals stocks that land up in the oversold zone giving us the chance to employ our ‘opportunity cash’ as we did last summer (read more…)

Agnico Eagle Mines Limited has reported quarterly net income of $28.9 million, or $0.20 per share for the first quarter of 2008 with the First quarter 2008 highlights being as follows (read more…)

A consensus of analysts had anticipated profits of $0.15 per share however, Yamana Gold Incorporated beat those expectations with a $0.20 per share result, leading to an after hours jump in the stock price of $0.41 (read more…)