Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Uncharted Waters | Main | Lihir Gold Limited: Going Places! »
Thursday
Jan292009

The Gold Bugs Index: Something to chew on

HUI Chart 30 Jan 09



Chart courtesy of StockCharts.com


A strange but nice day as gold is up $21.90 at $908.30, silver is up $0.40 at $12.35, and the HUI is up 13.3 at 301.85 whilst the DOW dropped 226 points to close at 8149.

Taking a quick look at the above chart of the HUI we can see that the RSI is trending higher which is positive and the MACD has just formed a golden crossover as the black line has crossed the red line in an upward swinging motion. We can also see that the 50dma (blue) is moving up in support of the HUI; hopefully it will cross the 200dma in the not too distant future
.

Something to chew on:

Gold is now within a hundred bucks of hitting the magical level of one thousand dollars per once level. If you cast your mind back to the last time gold was trading that high you may also remember that gold producers such as Agnico-Eagle were trading at around $80.00. Agnico-Eagle is currently trading at $53.74, so if parity is to be achieved gold will increase by 10% to reach $1000/oz and Agnico-Eagle will increase by 85% to achieve $80.00/oz. That is an incredible ratio of almost 9:1. It doesn’t sound feasible does it?

If the HUI were to increase by 85% then it would stand at 555 points, which is, were it stood back in March 2008!

Hold on to your precious metal stocks this could be one heck of a white-knuckle ride!

Have a sparkling day.

Stay tuned for updates in this fast moving market…

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.


PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>