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
Thursday
Oct192006

BUY GOLD JEWELRY: And avoid the dog box!

dogbox1

Avoid the dog box and buy your nearest and dearest a really nice piece of gold jewelry. So its not an EFT or a share certificate or a tiny fraction of a huge managed fund – so what?

jewelry1


What you do have is a piece of art that can be worn and enjoyed by your partner and admired by their friends. Whenever it is comes out of its place of safekeeping the fact that you were late will dissipate and life will run smoothly again.

Be warned though, you must go for quality and not just buy it for its weight, stop thinking like an investor for a moment and look for craftsmanship. Also have the piece valued by a respected professional and insured accordingly, be covered for the moment you realize that the organic champagne took a grip and your investment, Oops, sorry present has been left behind in the wash room of that expensive restaurant!

When shopping we tend to buy what we like to look at, like decorating the house, I would like to see my teams colours everywhere! But, somehow that doesn’t appeal to my better half. It’s the same with jewelry, get the shop owner to talk to you about what you are trying to achieve and try to incorporate their views before splashing out.

Finally, and this is very important: you need an exit strategy. I know I just said that this is not an investment but…..

Back when gold hit the $800.0 level I was working in The Netherlands and the TV regularly reported people who were rushing in to the jewellers and selling a family heirloom for its value in gold. The jewellers for 5 times the price then sold these pieces. Your exit strategy needs to bear this in mind. Like shares do not be panicked into selling with the herd.

However, the chances are that you will never get the opportunity to sell them anyway, so enjoy them while you have them and you can always cut and run with them should our respective governments continue to print dollars as though it is an Olympic event.

Go mad on this one!

19 October 2006
Tuesday
Oct172006

GLASS EARTH: Update

Just a quick note regarding this stocks activity in terms of volume. Since publishing our research on Glass Earth we can now see that the volume on 13 October 2006 was 982,500 which took the stock price to C$0.18.

The following day the volume dropped to 22,500 and the stock price closed at C$0.165.

So we will continue to wait and watch until a suitable entry level, a bargain no less, appears.

17 October 2007
Tuesday
Oct172006

GOLD: About to sparkle!

Gold prices are nervously coiled ready to spark on stock exchanges throughout the world.

The physical price of gold is heading up to the 200 DMA and we believe that it will go straight through it. In turn the 200 DMA will go straight through the 50 DMA and both these averages will follow the gold price upwards.

There, now our necks are really on the line.

It is said that if you can get the direction of an asset class right and have the nerve to position yourself accordingly then you should do very well indeed. We think that we have done this. However today we are going a step further with our predictive analysis to add some definition to the current picture. Always a dangerous thing to do as the possibility of getting it wrong is very high. Nevertheless, a faint heart never won a fair lady. We are 90% invested at this stage so we are in position.

Now lets turn to the chart and try to ascertain what it is telling us. Our interpretation of this chart is that we are on a collision course that will result in sparks with gold coming out on the upside. We will go even further and say the gold’s upward move will take it to the $650 level before February 2007.

gold17oct06

If you have allocated a portion of your funds to gold shares then now is the time to invest, in our humble opinion. If you are already in, then hang on and enjoy the ride.

Always consult your registered financial advisor before putting your hard earned cash at risk, because at risk it most certainly is.

17 October 2007
Sunday
Oct152006

Gold rush ahead of Diwali

diwali1


The daily trading of gold hits 1000kg according to the Hindu news update service, up from 300kg to 400kg.

Follow the link to the Hindu news to read about the increase in the demand for gold ahead of the Diwali and the wedding season.

The Hindu News


15 October 2006
Sunday
Oct152006

GLASS EARTH LIMITED: Kiwi Gold?

glass1


GLASS EARTH LIMITED is a gold exploration company in New Zealand. It trades on the New Zealand stock exchange as NZAX and on the TSX as GEL.

This gold mining company was established in September 2002 for the discovery and development of precious metal and geothermal opportunities in New Zealand. Geothermal you say? Yes, New Zealand gets its power from hydropower and endless supplies of hot water from underground springs. I spent about six years living down-under and I have seen first hand people stick a pipe into the ground and instantly access a supply of hot water. In fact the best massage that I have ever had was under a constant supply of mineral water for about one hour. I don’t know what good it did me but I felt like a world champion afterwards.

Back to Glass Earth, the management team consists of a number of well-experienced geologists and technical people capable of doing the job. They have also managed to raise C$2.8 million to fund exploration programmes along with the more recent secondary listing on the New Zealand exchange as NZAX to raise a further NZ$10M in funding. So the picture starts to form, we now have a very capable team and the funds to enable them to execute their exploration programme for the next few years without going back to their investors for more cash, which in our view is a healthy position to be in. They have already stated that they will be using the latest airborne geophysical techniques to ascertain suitable targets along with a drilling programme, which commenced in May. They will be exploring a 20,550 sq km area in Otago, which is located in the South Island.

It is often said that the best place to build a gold mine is next to an existing gold mine, which leads us to looking at this countries history of mining. It can be soon ascertained that New Zealand has a rich history in gold mining with the Martha gold mine on its own has yielding over 7 million ounces of gold and about 50 million ounces of silver since the 1880s. There are still tourist attractions set around the old mine sites with primitive sluicing set-ups demonstrating just how it used to be. Now, with modern techniques being used who knows what they might find?

This is not an ‘Agnico Eagle’ it is purely an exploration play and you could lose everything that you put into it if they don’t discover anything. So, as always don’t go too mad on it but we think that a few bucks put in now could well give us a big surprise.

In the last 52 weeks the stock as seen a low of C$0.12 and a high of C$0.22 and is currently trading at C$0.18. There are 90 million shares and the company is valued at just under C$12.0 million. Apart from a million shares being traded on the 13 October the liquidity is poor with days going by without a share being traded. This means that your investment cash is not readily accessible so you can’t get out in a hurry. However, if you can put some cash in and sit on your hands for sometime then we think that you will be pleasantly surprised.

Now, timing might not be everything but it is very important indeed. We will not be buying just yet. We will wait for the euphoria of a new entrant to subside a little and we will watch the volume and news releases just to see how this stock progresses. But we will make an investment in the near future and report to you when that time appears to be right.

15 October 2006
Friday
Oct132006

GOLD STOCKS: Are you enjoying today?

Gold prices continue on their road to recovery with some of our gold miners gaining as much as 6%.

Hope that you have managed to sit through the carnage and took the knocks on the chin because things would appear to be stirring in the precious metals swamp of supply, demand and manipulation. The case for gold becomes stronger by the day despite the ‘dumpers’ who are trying to stop the tide from coming in.

As we write US Gold is up 6.10%, Kinross is up 6.08%, Agnico Eagle up 3.76% even TGB, our copper stock has put on 6.42% and AUY lags with a mere 2.74%.

We are in this business for days like this; if you can hold your nerve and battle through the obstacles then the rewards will be terrific.

Have a great weekend.


13 October 2006
Friday
Oct132006

GOLD STOCKS: Update as of 13 October 2006

The webs only free portfolio of gold stocks provides a quick update of our investments to date:


AEM $31.10 BUY
AUY $8.75 BUY
BGO $4.48 BUY
CBJ SOLD (For a 36% profit in 12 weeks)
GSS $2.75 BUY

HL $5.36 BUY
KGC $11.51 BUY
SLGLF $0.052 HOLD
TGB $2.18 BUY
USGL $4.10 HOLD

Silverado and US Gold Corporation have disappointed so far but they are the ‘gambling’ element of our portfolio. Maybe there is a lesson to be learned from this.

We regard the other miners as companies of reasonable substance, well-managed, sound operators with a bright future.

We are also entering the results season with announcements coming through on an almost daily basis and we expect these results to be well received. This will add to the validity for making an investment into these producers.

As for gold prices, we see it holding where it is, until the elections are behind us. No government wants to go into an election with the boat rocking around as though it is being managed by a bunch of drunken sailors. We can expect the Plunge Protection Team to hold a steady line until then. At what cost we hate to think.

13 October 2006
Friday
Oct062006

GOLD: A dent in the sentiment!

The French dump gold, the Chinese take a vacation and gold prices dip below the 2oo Day Moving Average. So what?

So many chartists are hanging their hats on one support level being broken and then extrapolating this one event to predict the end of the gold bull market. If it were only that easy we would all be sipping pink champagne on the back of a yacht moored in an exotic location.

In our book this is not a time to sell. We are not selling anything. As and when the cash becomes free we will look to increase our exposure in the precious metals sector.

Sure the 200 DMA is important and breaching it is not a healthy sign. But look at the last few years we breached it last summer and summer before, so what? Was that it? Good night Vienna? No it was not!

But it was a prelude to some wonderful rallies wasn’t it?


gold06oct06

Sit on your hands, go and hit a few tennis balls and relax a little. And if you have a favourite gold mining stock, buy a few more of them.

Sleep tight.

06 October 2006
Tuesday
Oct032006

GOLD: Will she? Wont she?

goldimage1


Here at gold prices we constantly wrestle with gold, the latest data for gold, the Indian season for gold, central bank selling of gold and of course numerous gold metrics with a sprinkling of anecdotal gold flakes for good measure!

It’s quit often rather difficult to understand the opposition’s objectives and how they envisage the route to achieving those objectives. The Fed for instance gives us numerous statements about what they need to do and how they are going to achieve their mission. It then takes Wall Street a couple of days to make sense of it. This all assumes that the Fed wants us to know their intentions! And that’s a debate in itself.

A World Court judge once pulled me up for using the word assume. He said when you break that word down what have you got?

Assume makes an ASS out of U and ME.

So at the risk of being an Ass we attempt to filter out the white noise and take a broad stab at what the fed wants. Our conclusion runs along the lines that they want a managed devaluation of the dollar for the sake of the economy and in order to dilute the trillion-dollar pile that is held by others such as the Chinese. They do not want a crash and neither do the holders of these dollar notes. The holders also have a need for America to keep buoyant and consuming at a reasonable rate, after all that’s a big market to sell in to.

Now if we go back to 25 years or so when gold had its run to the $850 level and ask the question ‘was gold working inversely to the dollar we can see that both of them were quit capable of rising at the same time. So it’s not really gold that the Feds should be scared of, it’s a rapid diversification out of the dollar to any other asset that is the real problem. Gold will be a benefactor of such a diversification but not the only one and not the major one either. Major benefactors will be other currencies, not because they are strong but because they are ASSUMED to be safe.

We reckon that if the Fed can manage this balancing act of slowly diluting the dollar then gold is not their enemy, it plays only a bit part in the developing trend. Its such a small market anyway that’s its hard to understand the Feds paranoia about such a tiny competitor, if that is what it is. We think that the slow dollar dilution will continue and the rise of gold will also continue although it may not be meteoric as it can and will probably be dumped on if it looks like getting out of hand. But the dumping is King Canute like as a strategy as no one can stop this golden tide from coming in.

This brings us on to the chart.

goldchart03oct06

Will gold wont gold make progress? Well gold is sitting more or less right on the 200 day moving average with the other indicators more or less neutral. You could say that gold is in the doldrums. The team here at gold prices have learned that gold is at its most dangerous just when we think that she is taking a nap.

Our conclusion after much rigorous argument, role play, statistical analysis, evaluation of metrics, etc, is to sit tight with the stocks that we have while continuing to search for new faces that have the potential to generate major profits. We believe that every stock we own will double from their current levels and they will do this in the next 12 to 18 months. It will however be volatile and very uncomfortable at times. Should our research in to new stocks prove to be unattractive then we will publish and say why we are not investors. If the new stocks don’t have the potential of a Yamana or a Bema then we will continue to accumulate those gold mining stocks at opportune moments.

We have no wish to own every stock on board or more stocks than we can cope with. The retention of sufficient knowledge of each stock is very important to us, if you cant remember why you invested into a particular company then you probably have too many. A particular news event comes along and you don’t know if it will affect your stock or not! It’s similar to bull fighting when you are blindfold.

Hold on and be patient the best is yet to come.

03 October 2006
Wednesday
Sep272006

YAMANA: BUY

Gold prices bought Yamana Gold towards the close of business today at $9.37 per share. It was a close call as to where to invest our funds but Yamana got the vote.

From the chart below we can see that Yamana has managed to hold and bounce off its 200-Day Moving Average, which we thought was very encouraging. The RSI, MACD and Stockastics are all turning in the stocks favour. Yamana exhibits considerable strength and we expect to see it trading back at its old high of $12.0 fairly soon.

YamanaChart1


This investment is of course predicated on gold returning to higher ground. Our research shows that the fundamentals remain in place for precious metals. Add to this the end of the season for the Central Bank sales and the start of the festival season in India and we think this could be the beginning of the next up leg in gold prices.

From what we have read it would appear that the Central Banks have not sold their full quota for this year, though the figures vary in each new publication. But, if this is so, then we see it as being bullish for gold as there is a banker out there who has seen the light and wants to hold onto his job. Unlike Gordon Brown who got it wrong big time and is now in line for promotion! How many times have you seen that happen?

As usual don’t go too mad on this one.

27 September 2006