Chart courtesy of Stockcharts

At the time of our last update on the 26th May 2009 we said that the dollar now looked oversold and a short term bounce could be on the cards thus capping the progress in gold prices. We also said that Gold was technically close to the top of its range so it too could experience some short term consolidation or a slight pull back. Gold has moved down since then from $957.90/oz to $935/oz as we write however the dollars rally appears to have stalled as it is still hovering around the ‘80′ level.

For short term traders we suggested taking some profits on both Randgold and Yamana, we decided to sell all of our holdings in Randgold Resources and we then took an aggressive stance and bought PUTS on Randgold as we perceived that it was more overbought than similar stocks in the pack. We do however remain tight hold of our core position as gold could take off in an explosive manner catching many by surprise. We hope to close our down bet on Randgold shortly and re-position ourselves for the coming rally in gold prices (read more…)

Chart courtesy of Stockcharts

The de-leveraging that occurred last fall was largely attributed to the hedge funds running for cover however, not all the hedge funds have disappeared as John Paulson demonstrated by taking a 4.5% stake in Kinross Gold Corporation (KGC) (read more…)

Chart courtesy of Stockcharts

On 28th May we decided to lock in profits of over 80% gained on Randgold Resources Limited (GOLD) when we sold all of shares for $68.69. The question now is can we use Randgold as an insurance against a possible fall in the gold stocks sector.

We believe that we are in a strong bull market for precious metals and therefore we want to keep hold of our core position of Agnico-Eagle (AEM) Kinross (KGC) Yamana (AUY) as we expect them to be trading a lot higher by the year end. However gold itself took a hit on Friday and the US Dollar bounced from an oversold position to gain 1.63% in a day as we can see from the chart above (read more…)

Since our last update of the 10th March 2009 gold has moved up to $957.90/oz, silver up to $14.70/oz and the US Dollar has declined from ‘89′ down to ‘80′ on the US Dollar Index, lifting the stock price of most gold producers. The dollar now looks oversold and a short term bounce could be on the cards thus capping the progress in gold prices. Gold is technically close to the top of its range so it too could experience some short term consolidation or a slight pull back (read more…)

Kinross Gold Corporation (TSX-K; NYSE-KGC) has just issued a news release covering the corporations first quarter results which we find very encouraging and have listed the highlights below. Kinross Gold Corporation forms part of our core position and we expect it to do very well as gold continues to challenge its old highs (read more…)

In the post bag this morning there is this article sent to us by the ‘Big Gold’, team of the Casey Research group, which we hope that you find both interesting and informative as it is all about gold, as you would expect.

You are traveling through a desert in search of a famed oasis and its promise of riches, rest, and drink. But your journey has grown long, you are weary, and you begin to doubt the oasis really awaits you. But then signs appear from those who have gone before you that your course is true, and the reward you seek in fact lies ahead. Your spirit is renewed and you press on.

Does this describe your journey with gold (read more…)

As we mentioned during the last update there was a danger that the DOW could close below 8000 and stay there, which according to some analysts signals a further fall to 6000, which has almost come to pass as the DOW now stands at 6547 having some bearing on the HUI which is down about 40 points to 275.

We also mentioned the effect of having a new president which we thought might generate a rally across the board, well the honeymoon period didn’t do so well and its certainly over now. The de-leveraging and or general selling continue to pull cash out of the market which in turn adds to the strength of the US Dollar. We doubt that this can last and still expect the US dollar to u-turn and the precious metals sector to prosper (read more…)

Chart courtesy of Stockcharts

Its nice to read about a company thats not on its knees and begging for a handout. Revenue grows 48%, margins increase 33% year-over-year and cost of sales continues downward trend in fourth quarter. This is the headline of a missive that we have just received from Kinross Gold, the highlights are listed in bullet point format below and are well worth a slow read (read more…)

Chart courtesy of StockCharts.com

A quick look at the gold bugs index chart and we can see that gold stocks are trending higher and have gained 100 points over the last few months. The danger still exists that the DOW could close below 8000 and stay there, which according to some analysts signals a further fall to 6000. If this happens then once again we could be caught in the crossfire as the precious metals go out with the bath water. Hopefully the effect of having a new president will generate a rally in the markets at least for the next few months. We still need the de-leveraging to come to an end and the US Dollar to u-turn to in order to get some impetus into the precious metals sector (read more…)

Chart courtesy of Google Finance

Remember just over one year ago? RBS (Royal Bank of Scotland) paid $100bn for ABN Amro.

GM, Ford, Chrysler and the Honda Formula 1 Racing-Team –>