-- Posted Thursday, 11 May 2006 | Digg This Article
Hey, how about that gold price?
While some still continue to believe this to be a simple rally I continue to believe gold is still finding its equilibrium after 20 years of an artificial low price.
Gold just refuses to stay down no matter the news.
China lowered their interest rate recently which initially slowed the commodities…but only for a moment. The US dollar continues lower and is on its way to being “par” with the Canadian Dollar. When The Gartman Report predicted this would happen some while back they were laughed at…but not any more.
We really are at just the dawn of a new era and a new important financial and economic cycle.
Dawn - the earliest period; "the morning of the world", the beginning of anything, an opening time period; "it was the dawn of the Roman Empire." "The age of computers had dawned", undergo a change; become different in essence; losing one's or its original nature; “The weather changed last night." - for more info, click here
I believe my favorite definition of this new era is the following, “The weather changed last night." Well, the financial weather is changing right before our nose, but for the masses they just are not paying attention. And that basically describes our world today. While many believe the status quo remains unassailable I believe its very foundation has already begun to crumble away.
“Dennis Wheeler, editor of the Gold Stock Report — believes, and I quote, that “We are in the midst of one of the greatest bull markets in gold of all time,” and “This is the place that great fortunes are going to be made over the next several years.” Pretty unequivocal talk, but everything we see around us only reinforces Dennis’ message: US monetary policy, accumulated debt, related fiat currency issues around the world, and increasing demand from Asia across all the commodities are providing momentum for the move.”
- for more info, click here
Below is an email from a reader.
“Either way it looks like someone's goose (Canadian or Canada) is going to be cooked if they don't get with this understanding. After all, gold's rise IS about currency degradation, so it behooves people to understand what is real value and what is not. Lest they sell a pig for a poke.”
Laurence
Jim Rogers, former George Soros partner, is predicting $1,000 ounce gold +.
“The shortest bull market for commodities lasted 15 years, the longest 23 years…they've got a long way to go.” “Supply and demand is terribly out of balance…” “This is not a bubble.” “Nobody has opened any major mines anywhere in the world for many years and it takes a long time to bring new mines on stream.'' “All the old mines are in the process of being depleted and demand is continuing to grow.'' Jim Rogers
I believe gold veteran Bill Murphy bests describes the present gold climate.
Bill Murphy - “The gold market continues to be the worst reported-on one in history. There is one dorky comment after another to explain what is really going on.” “What is remarkable, and part of the public record, is how few bulls there have been on the way up and how few bulls there are now.” “Gold, silver and the shares remain THE historic investment opportunity of a lifetime. Be there and remember…”
- for more info, click here
So we ask ourselves, what next after 700 an ounce gold?
Do you really want the answer to that question? If you do want to know the future and continuing direction of the gold price then read the text below. The US dollar will lead gold yet higher still. And the US dollar’s decline? We have not even begun to get even a taste of how far the dollar will eventually collapse to.
Anyway, read the text below.
“The dollar tumbled to a fresh one-year low against the euro and eight-month low against the yen Wednesday, after the Federal Reserve delivered on a widely expected interest-rate increase, but the accompanying statement failed to change the bearish sentiment towards the dollar in the market.” “The dollar index, which tracks the U.S. currency against a handful of the world's major currencies, also dropped to its lowest level in a year at 84.37. It was last at 84.52.” “But "given the incredibly bearish dollar sentiment of the market in general...” - for more info, click here!
You still haven’t bought your first gold or silver stock yet? You better read long time gold veteran and probably the most astute investor, Doug Casey, below.
Doug Casey - “…in 2005, investment in gold ETFs and similar financial products showed a 53% increase, to 203 tonnes. And things are barely starting to warm up.” “…I am convinced we are now in the gold (and silver) bull market for the record books, a bull market that will surprise even me with its strength. And that's saying something.” “…a once-in-a lifetime chance to make life-changing profits quickly.” “I know you may find it hard to believe, but by the time this thing is over, your $.50 cent stocks will be trading for $5.00, and your $2.00 stocks, for $20. Or more. It's going to be at least as wild as the Internet market was in the late '90s.” “Given that view, it's hard to see a summer pullback for gold, should there be one, in anything other than a positive light.” “This market trend is solidly in motion. While it may periodically scare you as much as it thrills you, at no point doubt that it is your friend. Treat it accordingly and it will treat you well. In fact, even better than you likely imagine.” - for more info, click here!
And while this climb higher will not be in one straight line up the over all long term trend is for higher prices for years to come. And from the Daily Reckoning below.
Daily Reckoning, Bill Bonner - "What's happening? Those stupid investors and central bankers in Asia are getting smarter. They are buying less government and mortgage-backed bonds and investing more in commodities. Global capital flows are shifting away from the United States and - for the time being - directly into commodity and resource stocks and funds and ETFs."
Subscribe to Gold Letter to receive recommendations of under valued gold & silver stocks poised to rise in a climbing gold price. ü - click here!
Comments? Thanks for coming by & please do come back.
David Vaughn
Gold Letter, Inc.
David4054@charter.net
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-- Posted Thursday, 11 May 2006 | Digg This Article
