LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek.com to Launch New Website
By: GoldSeek.com

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA

 
Search

GoldSeek Web

 
Gold and Silver – Prepare to Back Up the Truck!



-- Posted Thursday, 29 November 2007 | Digg This ArticleDigg It! | Source: GoldSeek.com

The pull-back we are seeing in gold and silver is nothing more than some high-volume backing and filling, within the major uptrend.  The annual Christmas rally which started in August has a lot of life in it yet.

 

The sub-prime mortgage debacle is nowhere near solved, and we can count on the central banks to do what they do with every problem they run into:  print more money.

 

Nova-Gold just made headlines with news about a problem that most miners are all too aware off:  It’s costing more and more dollars to build a mine.  The majority of exploration companies even if they find gold, never build a mine!  It either costs too much, or it is located in an area that is too remote, or the area is no longer safe.  The number of problems are endless.  I’m confident that Nova-Gold will find a way, in view of the fact that the deposit at Galore Creek is large enough to pursue.  Other companies, with smaller deposits are going to have a hard time bringing their gold to the surface.  There have been no large gold finds for a number of years, and the increase in the amount of gold being produced is getting smaller.

 

The price of gold, adjusted for inflation (using the official CPI rate which is deliberately held down), would have to be over $2,200.00/oz, just to match the $850.00 price reached in 1980.  The world has since added several billion new consumers.  Gold is still cheap!

 

The central banks on balance, have less gold on hand than they claim to have. They will soon be reluctant to sell the gold that is still in their vaults, for fear that the price they can obtain, will be less than what they can get in the future, and they surely will want to avoid the mistake made by British PM Gordon Brown who with much fanfare, sold gold at $260.00/oz in 2001.

 

Or how about the Canadian central bank, which over a period of time, sold more than 90% of its gold, and put the money into US Treasury notes.  Some 38 billion dollars worth!

 

The Wizard of Id once asked his finance minister, to supply him with some more money, so he could continue with his pet projects.  The finance minister answered: “Oh, but we can’t do that Sire!’  “Why not”, demanded the Wizard.  “Because we don’t have any more gold to back the currency.”  “Thank goodness” replied the Wizard.  “For a minute I thought you were going to tell me that we’d run out of trees!”

 

Charts courtesy www.stockcharts.com

 

 

 

Featured is the daily gold chart.  The uptrend is well defined.  Price is carving out a pennant.  A breakout at the green arrow could happen at any time, and will quickly take gold past the old high of 850.00 set in February of 1980.  The supporting indicators are positive (green lines). 

 

 

Featured is the December silver futures chart.  Price tested the support level early today, marked by the rising 50DMA and the horizontal support at 14.00 (green line).  Price closed near the high point of the day.  The 50DMA and 200DMA are in positive alignment (green arrow), and both are rising.  These are all bullish signs.  A close above the blue arrow will start silver in search of the upper blue speed-line once again. 

 

 

Featured is the HUI index of unhedged gold and silver stocks.  The uptrend is well defined.  Price produced a buy signal today (green arrow), after it tested support at the 50DMA.  The supporting indicators are positive (green lines), the longer-term target for the HUI is 490 (resulting from the upside breakout at 400).  This breakout has now been tested, and the HUI is getting ready to resume its uptrend.  The fact that the HUI rose strongly, while gold was down in price today, is a very bullish signal for both gold and the HUI index.

 

DISCLAIMER:

Please do your own due diligence.  I am NOT responsible for your trading decisions.

Happy trading!

 

Peter Degraaf is an on-line stock trader with over 50 years of investing experience.  He sends out a weekly Email to his subscribers.  For a 60 day free trial, contact him at itiswell@cogeco.net, or visit his website www.pdegraaf.com


-- Posted Thursday, 29 November 2007 | Digg This Article | Source: GoldSeek.com




 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.