October 21, 2019 
 Monday 
 
 

Forum
Topic:
Gold Enters Major Bull Market

       

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 By bluejay

06/18/2006  8:35PM

Gold's recent collapse was a rigged event.

Your recent paper losses in precious metal related stocks and precious metals was caused by western central bankers and their puppets hoping to scare you away from your holdings and to silence the positive headlines that gold was capturing with higher and higher prices.

If you want to read the real truth on how gold collapsed along with changing internal market dynamics there is available a superb editorial written by Mr. Dan Norcini on the http://www.jsmineset.com website entitled, "Remarkable Development In The Gold Market."

The editorial was posted today, June 18th at 3:36 PM EST.
 By bluejay

06/13/2006  1:09PM

It's an ugly day for believers in gold. Gold's last sale is 567 which is off nearly $40 on the day.

This down move all started when Exchange members in London were spreading the short term copper market against the long term copper market and ran into financial trouble meeting Exchange liquidity requirements. Copper has had a spectacular move this year trading over $4. Today, it's $2.9350 on the bid side.

The Bank of England thought by hopefully depressing the gold price this would drive base metals lower and save the failing member trade positions. What the BOE did was to lend out their last remaining physical gold to intermediaries for immediate sale to into the market.

Soon after, the FED decided to acknowledge increased inflation and publicly made statements that they were going to contain it by raising rates further. Concomitantly, other countries began speaking of rate increases to ward off inflation thus effecting the enthusiasm to acquire gold and the gold stocks.

All during these statements from central bankers the Exchange Stabilization Fund and their intermediaries started shorting gold and the gold stocks increasing the visibility that the central bankers were back in control.

Not too far behind were many of the 15,000 hedge funds that did't want to miss any profitable rides to the downside and began in earnest selling gold and the gold related stocks. Great pressure was even put on Canadian gold related stocks in Canada.

The end result has been a fast snowballing effect that has put gold on a slippery slide disturbing almost all positive daily and weekly aspects of the precious metal related stock charts.

This concerted effort to halt gold's advance was instituted for the reason that the hedge funds had pushed gold too high and the central bakers with their fiat currencies felt threatened.

There may be $7 trillion invested with hedge funds today. The funds have more financial might now to effect prices than the central bankers. What the hedge funds don't have is an understanding of the small gold market in comparison to other much larger markets. The end result is that they move around like hungry elephants in a china shop.

Somewhere along in time the central bankers will be pressed big time when the hedge funds return following gold's strength and propel it much higher than might be reasonably expected, again.

Whose gold will be used next time to hold the advance in check? What central banks still have physical gold instead of IOU's? Knowing the central banks hatred for gold they will probably figure out a way to lend out these IOU's and have them sold too.

Aside from the fundamentals that support gold to move to higher levels in time, the time will approach when all of the ammunition from the central banks and the funds will have been spent and the bull will march forward again to new heights.

The entry of the $7 trillion buying power of the hedge funds has brought with it unpresentented volatility to gold and its stocks. It is greatly amplified in the gold market because of its size. This is the sad truth that investors and followers of this market will have to cope with in the future. Expect the unexpected in price movements with a strong bias of trending higher.

Somewhere down the line the central bankers will choose to inject liquidity into the system as opposed to their current theme of constricting liquidity with talk of rising interest rates. Even if interest rates continue to rise these guys will always find indirect ways to inject liquidity into the system. As Richard Russell has always said, "Inflate or Die."

Gold is entering the famous $540-$580 range that Barrick Gold covered a significant portion of their gold hedge book into following their merger with Placer Dome earlier in the year. Barrick Gold is the eyes and ears of the people who would prefer gold to remain low and tame. If they covered a large portion of their gold short position then this area in all probability is the floor on gold market today.

The following are a few comments from the brilliant Monty Guild of Malibu, California:

"Only the few will have the nerve to buy the dips(gold)"

"These who buy the dips(gold) end up very rich"

To view the fundamentals on why gold has to go to at least $1,650 visit http://www.jsmineset.com for an education by the master himself, Mr. James Sinclair.
 By bluejay

06/12/2006  11:44PM

Gold is currently trading in overseas markets tonight at 591.60. The media will be having a field day tomorrow reporting gold being under 600.

These low prices are being made available to you by the FED, the Exchange Stabilization Fund and the Bank of England.

Don't miss this super sale!
 By Dick Davis

06/02/2006  10:51PM

Dear Bluejay,

I like the price, but is anyone mining gold at the 16:1?
 By bluejay

06/02/2006  9:47AM

Currently, there is an anomaly between some of the major gold producing stocks and the price of gold. Gold is off 10.30 at 633.20 while some of the major gold stocks are showing healthy gains.

The four stocks that are exhibiting unusual strength today are:

Agnico Eagle Mines - AEM-NYSE
Meridian Gold - MDG-NYSE
Newmont Mining - NEM-NYSE
Randgold Resources - GOLD-OTC

What does the firmness in these stocks mean as opposed to gold being off over 10 dollars?

Usually, this type of contrary buying in the gold stocks means a bottom has either been made or is near. In overnight trading gold hit about 618.50 which is in the general vicinity of major support at the 620 level.

Gold continues to be confined within a declining trend channel area of between 645 and 595. If the 620 level holds the metal will break to the upside within 10 trading days and shoot for 682.
 By bluejay

06/01/2006  8:32PM

"You have to choose between tusting to the natural stability(enduring value) of gold.. and the honesty and intelligence of the members of the government. And with due respect to these gentlemen, I advise you to vote for gold."

George Bernard Shaw
 By bluejay

05/23/2006  11:49AM

Two comments from Jim Sinclair today:

1- "The volatility coming in gold is going to make history."

2-- "My estimate of $1,650 being the high in gold is probably wrong. It will be higher."
 By Michael Miller

05/22/2006  1:55PM

Just introduced myself to Dr. Peter Morici, author of an article in yesterday’s Sacramento Bee. He deserves compliments for bringing some fresh views into the gold market, views worth pondering. We will get his article under NEWS soon for you to evaluate.

Whether his words express facts or assumptions is less important in the overall theme: the Gold Standard. As a gold producer, I am usually an opponent of the gold standard. As one concerned with the future of America’s well being, I think it may have merit, at least talking about and refining with today’s economic realities. Dr. Morici writes: 1. Jewelry and industrial applications absorb 85% of new supply. 2. The big new players are exchange-traded funds. 3. Presidents Carter and Reagan put the American economy on the path of deregulation…..and made the dollar a better and more stable store of value than gold. 4. A dollar overvalued…has created huge U.S. trade deficits. China purchases more than $200 billion in foreign securities a year. 5. With so much of what the world consumes now coming from China and other Asian economies, the dollar will be worth a lot less to gold miners in South Africa or Russia.

Dr. Morici had never heard of America’s longest lasting and oldest U.S. gold company, which does not surprise me. He should, though, because following our history, our struggles and out potential is relevant. Original Sixteen to One Mine, Inc. has never lost its vision or ability to mine gold. At today’s prices or more, our success will be measured in share appreciation, gold dividends and the intangible so important to some, good will. When I first took accounting at UCSB in 1960, good will was an asset on the balance sheets to reckon with. I do not see it anymore. Why, when and how did it disappear?
 By bluejay

05/18/2006  4:56PM

Reading ignoramus statements from the press concerning gold's health is really disheartening for the reason that some readers are ignorant and don't know the difference but desire to be correctly informed and thus get educated.

The following, "It's a dangerous market because the fundamentals mean nothing" is plainly not a sensible statement from a writer at AP Business to make when their readers expect more.

The sad truth is that the writer doesn't possess enough of a perspective concerning gold's fundamentals to be writing about it. If the writer did, then the writer would have never made such an irresponsible comment.

All of the real fundamentals and how they apply to gold are objectively reported daily for no charge at http://www.jsmineset.com by Mr. James Sinclair with guest articles from two professional market men, Mr. Dan Norcini and Mr. Monty Guild.

You should really go to the site tonight as there is an enlightening story concerning the Bank of England(the guys who sold most of their country's gold under $300 an ounce) and why they are orchestrating gold sales currently to help save the London Metals Exchange.
 By Michael Miller

05/18/2006  7:26AM

Thought I would take a few minutes to comment on an AP Business article published Monday May 15, 2006 from New York and in the Sacramento Bee, sent to me by a shareholder. Madlen Read, writer, puts forth the following.

1. “Gold’s latest rise is the result of fear.”
2. “It’s a dangerous market because the fundamentals mean nothing.”
3. “Demand for gold has grown faster than supply.”
4. “Physical gold is an option. It’s not, however, the most practical vehicle for most people. There are costs to store and insure gold bullion, so it’s really only a good idea for those with a lot of money to invest.”
5.
Madlen, please do some critical thinking instead of repeating decade old opinions grounded in ignorance. You as well as most business journalists are well behind the curve of understanding how gold behaves and why. Most people, including myself, are very cautious when commenting about the under belly of the gold market. Its mystic has continued for 6000 years. Some opinions are just not true.

Fear is not driving the rapid increase in price. Fundamentals are as important to understand, as are technical facts. Econ. 1A or 101 teach the basics of the relationship of supply and demand on prices, nothing newsworthy here. It costs nothing to store gold. It does not need to be insured because you can bury $25,000 worth or more in you indoor plants. It will be safe from fire or other accidental occurrences. If you do not brag about your stash, no one will steal it, which is one reason some people, companies or groups own gold. It is the most private and liquid asset in the world.
 By bluejay

05/11/2006  2:29PM

This is the final word for the time being:

The following are statements made by Mr. Jim Sinclair today on his website at http://www.jsmineset.com:

"Forget the why. The gold price is doing what it is not because of fundamentals, technicals or geopolitics. The price of gold is acting the way it is because the market wants 1650 and will do it when it wants, not when some advisors tell it to.

Reactions when they come will be more spectacular than the rise."

Mr. Sinclair's advice is to buy into reactions.
 By bluejay

05/10/2006  10:44PM

A news report by MarketWatch could explain the reason for gold's strength recently.

"Moves by Venezuela and Bolivia to nationalize their countries' natural resources could soon spill into the mining sector, likely boasting prices for metals that are already at multi-year or record highs, while pressuring companies with interests in Latin America."

Value View Gold Report says "A great leftwing, socialist rising is occurring in Latin America, which will push higher all mineral prices."

Ned Schmidt goes on to say, Venezuela and Bolivia are only the beginning."

Indeed, early this month, Bolivian President Evo Morales said the move to nationalize the country's hydrocarbons sector was just the beginning. "Tomorrow it will be the mines, the forest resources and the land", he said.

"The greater concern is potential spillover to Peru" which is a major producer of gold and copper, said John Hill of Citigroup. Peru produced 207.8 metric tons of gold in 2005 or 8.2% of the world output.

The full story entitled "Gold markets eye Latin American moves" is available currently at Kitco.com
 By bluejay

05/10/2006  6:46PM

In January of 2004 the U.S. dollar was about where it closed at today, .84 on the Index. In January of 2004 gold was at $400 an ounce. Today's close in gold is over 75% higher than it was in 2004.
 By bluejay

05/10/2006  2:11PM

The last on gold is $708.10.

The price of gold is indicating that there is a serious problem that may be getting ready to surface.

The problem with the U.S. dollar is old news. Is the Iranian situation on the verge of exploding? Will there be company failures for those who have heavily shorted gold bullion. Has the FED been involved in selling gold and has it turned against them? Do we really have all the gold in Fort Knox and in federal reserve banks that they say we do? Something is wrong.

Gold is doing in days what it should have been doing in months, maybe weeks.

Gold has unexpectedly vaulted past big resistance at 682. Unfortunately, you can throw the charts out the window for the time being. Gold is a real animal now, growing stronger as it moves higher.
 By bluejay

05/10/2006  8:50AM

The deepest gold mine in the world is the Tau Tona owned by AngloGold Ashanti in South Africa. The mine workings extend 2.3 miles below surface.
 By bluejay

05/06/2006  2:01PM

Another surprise, this time from Berkshire Hathaway.

Warren Buffett said at the Berkshire Hathaway annual meeting that he didn't make any money on his silver investment because he "bought it very early" and said "he sold it very early. Other than that, everything I did was perfect."

In 1998 Warren Buffett bought for Berkshire 129 million ounces of silver. The price paid was over $500 million and probably cost him about $3.90 an ounce.

Silver closed Friday at $13.90.
That's $10 an ounce profit not realized. $10 times 129 million ounces of potential silver profit would have been $1,290,000,000.00. Now, that's a real big mistake.
 By bluejay

05/04/2006  11:18AM

Barrick Gold made a surprise announcement with their first quarter earnings report filed yesterday.

Barrick stated that their corporate gold sales contract positions(forward gold sales) have been reduced by a shocking 4.7 million ounces. As of 5-03-06 a total of 5.7 million ounces of forward gold sold have been squared away.

Barrick intends to reduce their hedged forward gold position by another 2.0 million ounces by year's end. Barrick further stated that by the end of 2009 they will have eliminated their entire gold hedge program.

Barrick in the past has been accused of contributing to gold's long bear market with their excessive forward gold sales. Gold ultimately bottomed out at just above $250 an ounce some years back.

An appropriate question is, why did these gold companies cover their gold hedge programs so late. I guess they don't read our Forum pages.

Some years ago Mr. James Sinclair of http://www.jsmineset.com took out full page adds for all gold companies to read in mining trade paper's and in Barron's that gold was heading up and that gold hedge programs should be terminated.

Do you remember the story that, "you can lead a horse to water but you can't make him drink"?

One only has to wonder why it took these guys so long to cover?

Included in Barricks buy back were the gold short positions incurred by Placer Dome which they recently acquired.

Placer's loss for their share of the past forward gold sales in the quarter was $1.2 billion and in the time following the first quarter was $814 million. That's a staggering $2 billion plus in losses for the Placer position alone.

Does anyone remember that some of the seed money to get American Barrick originally started came from Saudi Arabia?

Does anyone remember that George Bush senior was a board director at Barrick?

American Barrick was put in place to control the price of gold. It is obvious by their throwing in the towel that there is no stopping gold now.
 By bluejay

04/19/2006  12:19PM

Last on gold is $640. I know we're in a bull market and I know it is healthy to react but this current move is very very impressive.
 By Rae Bell

04/19/2006  7:56AM

How about that gold price? The london fix is $624.75 today!
 By bluejay

04/16/2006  9:54PM

New Delhi, April 16, 2006
Press Trust of India reports from Assocham's Paper on "Yellow Metal: its Future Pricing Trends" that

"gold demand world over had reached at around 4,000 tonnes per annum against its supplies which remained stagnant at about 2,250 tonnes per annum."

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