The race to the bottom continues with first place oscillating between the main players, the Euro, the Yen, the US Dollar, etc. As the chart above shows the British pound has taken a dramatic plunge this year.
It may not be all bad news though as this snippet from The Telegraph points out:
(Kitco News) - The chief executive of low-cost, mid-tier gold producer Alamos Gold Inc. (AGI) says Turkey wants to become a significant mining jurisdiction, and he also looks for more mergers within the gold-mining sector.
Canada-based Alamos Gold owns and operates the Mulatos Mine in Mexico and produced 200,000 ounces of gold at a cash operating cost of $355 an ounce in 2012, which company officials have described as their best year ever. Alamos also has advanced-stage exploration projects in Turkey.
The company obtained its Turkey properties in 2010
SAN FRANCISCO (MarketWatch) — Gold futures rebounded Monday from last week’s selloff to score their biggest gain of the month, as analysts say a recent report hinted at a potential bottom for the metal’s prices.
Investors also weighed gold’s safe-haven appeal against a backdrop of early exit results from Italy’s election and a rating downgrade on the United Kingdom.
Two former Conservative chancellors have issued grave warnings about the British economy as the government braced itself for the pound to slide following the loss of the UK's coveted AAA credit rating.
Sterling is expected to fall against other major currencies as the financial markets respond to Moody's decision on Friday evening to cut the national credit rating, repeatedly used by the chancellor, George Osborne, to validate his tough economic measures, by one notch
Last October, among the various statements by Hugh Hendry at the annual Buttonwood gathering was this blurb by the man who is otherwise a big fan of physical gold: "I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity.
The risk premium goes up
It’s our third consecutive win in the early months of 2013, and this time we made a profit of 53.33% in just 7 days! We believed that gold and silver would both continue to fall significantly, and that Coeur d’Alene would be vulnerable to such a fall.
This is in stark contrast to many other newsletters that have been recommending to buy gold and silver stocks.
Therefore we signalled to our subscribers to “buy CDE Sep 21 '13 $20 Puts at $1.50 with 5% of our capital allocated” on February 12th; we believed that these puts in particular offered attractive risk reward dynamics.
Over the next 7 days
My message lately has been very simple: buy low.
And do it now.
The essential formula for investing, as you know, is to buy low and sell high. So easy to say, so hard to do.
It takes real mettle to be a successful contrarian, and it's precisely because so many investors are so nervous about our market today that it's a buyer's market.
Let me digress for a crucial, relevant sliver of history.
It was literally a deal done in the dead of night:
The Cross of Death is now unavoidable for gold prices as the 50dma is set to cross over the 200dma in a downward swing. The chart below shows that there was considerable damage done to gold following the last cross of death with gold prices dipping to the $1550/oz level. However this was short lived as gold recovered and managed to form a golden cross as the 50dma crossed over the 200dma in an upward swing. So it’s a crisscross situation that we find ourselves in as nervous investors, swing traders, speculators and fund managers go with the trend of day and trade accordingly.
The sell-off of both gold and silver has had a dramatic effect
First up, some admin; when you subscribe please ensure that you have bob@gold-prices.biz added to your safe sender list, and that your emails are not being blocked by a spam filter. Otherwise we have no way of contacting you and our emails to you get bounced back to us.
This is an article that we received today from GoldSilverWorlds which we hope you find interesting:
We often make a distinction between buyers of physical precious metals, [PMs] and buyers of futures, exhorting the former to buy with impunity, and some may see that as cavalier, given how the price for both gold and silver have been in recent decline.
The point for buyers of PMs is for both protection and creation of wealth. Protection against insidious central bankers destroying currency-purchasing power, over time, and wealth creation as evidenced by those buying PMs over the past decade and seeing the intrinsic value grow dramatically.
Buyers of the physical are less price sensitive and view current declines as opportunity to add more. As an example,
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
Wednesday, February 27, 2013 at 08:40PM