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
« Gold Confiscation: Straws in the Wind | Main | Should You Buy a House Now? »
Tuesday
Sep142010

A Sparkling Day to be a Precious Metals Bug

Gold Price Change Kitco 15 Sep 2010.JPG
Chart courtesy of Kitco.com

Just where to start is the question as the excitement zooms along with a new all time in gold prices partnered by silver prices coming through with a sparkling performance. First to gold prices where we can see the make up of the move on the chart above, a weaker dollar accounts for $10.10 and buying pressure accounts for $13.20 for a gain of $23.30 with gold closing at $1268.70/oz and silver at $20.48/oz, with big smiles all round.

Gold Chart 15 Sep 2010.JPG
Chart courtesy of stockcharts

A quick look at the chart for gold prices depicts todays surge and the close with a new all time high, great news for gold bugs across the globe who have kept the their faith in gold and shunned fiat currencies and the stock market in general. However, we can also see that the technical indicators are in the overbought zone, which normally would suggest that a breather was on the cards. On the other side of the equation are the strong fundamentals in favour of gold and silver and the fact that gold has now broken out and is in unchartered waters. It could move a lot higher and move quickly, despite the bears and naysayers, we do expect both metals to put in a decent rally from here to the year end. New Years Eve for those who hold a position in gold and silver will be a bubbly one.

A quick look at todays action in the silver sector shows that silver prices were moving higher in Hong Kong and then sagged a little on the London Stock Exchange before moving higher again in New York. Theres no doubt about it, the NYSE still rules the roost but from here on in we will see the other stock exchanges chipping in with more and more price increases albeit small ones as gold trades around the clock.

Silver prices Kitco 15 Sep 2010.JPG
Chart courtesy of Kitco.com

The USD has mimicked a dead cat as its bounce from '80' to '83' has gone into reverse as it is now trading at '81.17' on the US Dollar Index. This doesn't read as though it is a significant change, but it is now below its 200dma of '81.62' which is a worry for holders of the dollar. The shadow of QE2 looms and billions are being produced out of thin air to stimulate the economy. Giving a drunk another drink is not the answer and never has been. This state of suspended sedation for Joe Public will come to an end with a jolt as spending power diminishes to miserly levels. Attempts to stave of this recession are reminiscent of King Canute trying to hold back the tide. In our heart of hearts we all know that the party was terrific, but now its over and its time to front up and face the problems head on. It wont happen though, governments everywhere will continue to print money thus continuing the debasement of currencies and sending gold and silver to higher and higher levels.

USD Chart 15 September 2010.JPG
Chart courtesy of stockcharts

Hold firm to your core holdings, physical metal and your options trades, this may be a top, but its only the beginning of a much bigger rally.









Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

On Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09. On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days, with more positions opened recently. Drop by and take a look.


To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.



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>