We are pleased to see gold prices taking a peak at the $1140/oz level today despite the US Dollar also showing strength, touching 81.6, which we view as being positive for gold prices going forward. Silver prices flirted with $18.00/oz but slipped back to $17.92 just after the close on the NYSE.
A missive from Jim Sinclair this morning entitled: Gold Shares - Lemmings over the cliff, in which he had the following warning for holders of precious metals stocks:
Negative spin and disinformation in its various forms (en masse downgrades - quietly followed by upgrades and negative articles on gold shares with solid management, valuable reserves, and excellent financing) are no accident. Organized interests want your quality gold shares and will herd you like lemmings over the cliff to acquire them. You must stand strong with your gold - January 06 2010 and quality gold shares. Ignore the spin. The gold shares stand on the cusp of a major breakout. Three taps and out is nearly complete.
So there we have it, hang on to your favourite gold and silver stocks as the future looks bright according to Jim. We are holding firm to our stocks although, as we have written in the past, we are a little disappointed at the stocks inability to set this sector on fire. Maybe we are just not patient enough and the best is still to come, go gold go!
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