Streetwise Articles
Will Gold Fall in the Summer Doldrums?
Source: www.GoldForecaster.com (5/5/08)
The gold market in the past has been seasonal, with the rule being, “Sell in May and go away”. This lull in demand usually started in May and lasted until the middle-to-end of August, with the main demand appearing in the final quarter of the year and lasting until the end of May. Will it be the same this year? Bear in mind a big fall has happened already this last month.
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Gold Stocks Take a Pounding in a Bear Hug
Source: Mineweb.com (5/4/08)
Since early March, when the dollar gold bullion price spiked to $1,030/oz, listed gold stocks have taken a pounding, with an average loss of about a third for each of 75 selected gold stocks listed around the world. Even Barrick, the world's biggest gold producer, has surrendered nearly a third of its value.
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Gold Is Back But How Long Can It Last?
Source: Mineweb.com (5/2/08)
London-based VM Group forecasts the possibility of gold trading within a wide range over the next 18 months from $700 to $1,300 as it falls back from its recent peak...Prices are only likely to go to the top end of this range if the credit crisis returns with a vengeance, but further gains from current prices are possible even without this as the US slowdown continues, gold supply from all sources remains constrained, and investor nervousness about other assets remains.
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Gold Up from 3-Month Low on Fed and Weaker Dollar
Source: Reuters (5/1/08)
"We could be in for a pretty volatile period over the next couple of months," said David Moore, an analyst with Commonwealth Bank of Australia in Sydney. "I can sort of see a situation where perceptions of the U.S. economy remain fairly changeable in the next couple of months. In that situation, we're likely to see the U.S. dollar remain vulnerable."
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"It" Might Be a Signal for Higher Gold Prices
Source: Greg McCoach, GoldWorld (5/1/08)
Every time the media has started a campaign like this in the past seven years, it's usually been a sign that precious metals are ready to make another move higher. It really has been quite predictable.
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Gold, Oil, Potash and Food: Top Investments This Decade
Source: James West, Midas Letter (4/30/08)
Of foremost importance is to embrace the idea that the investment climate of the next decade is nothing like the last decade. The landscape and very mechanics of market fluctuations have transformed, as the market itself has become instantaneously reflective of immediate influential factors, from a reactive environment to a predictive one.
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Gold - Is Confidence Evaporating?
Source: Ross Norman, FastMarkets Ltd., Mineweb.com (4/30/08)
The innumerable factors that have taken gold to a fourfold increase over the last years remain very much in place. Two of the major drivers - systemic risk and inflation - are more of an issue since the beginning of 2008.
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The Ongoing Bull Market
Source: Pamela & Mary Anne Aden, 321.gold (4/30/08)
The intermediate trend appears to be changing. We stress the intermediate trend because the major trends are very much intact, which is up for gold and the metals, and down for the dollar.
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CPM Says Silver Will Be Strong in Late 2008, Early 2009
Source: Mineweb.com (4/30/08)
CPM's research found that the sharp increase in the price of silver last year "reflected strong investment demand, from many parts of the world and from many types of investors..."Non-commercial market participants have been increasing their gross long positions since September 2007."
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Rare Element Resources Ltd: Strong Recommendation & the Second Way to “Skin a Cat” with Mining Share Profits
Source: Mining Insights (4/29/08)
I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .
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Why Gold Will Jump from $1,000 to $2,000 in Short Order
Source: Greg McCoach, Gold World (4/29/08)
...At last look the US Dollar Index was just over 72. And we're getting to that critical 70 benchmark, which, once broken, I believe gold will start having $100 up days instead of $20 up days...
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Silver and Gold Fall from Favor
Source: David Morgan (4/28/08)
... we may experience a tough summer once again, but in a bull market most surprises are to the upside not the downside. As more and more former gold bugs abandon ship, and the sentiment gets very poor you can rest assured the bottom has arrived. Then the precious metals continue to ascend the wall of worry.
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Not Enough Silver?
Source: David Morgan (4/28/08)
Is there enough silver if just ten percent of the baby boomer population were to allocate five percent of their net worth into silver, could it be accomplished? This might seem like a totally absurd question, yet the answer may begin to sink into the collective unconscious of today’s investor. When the Secretary of the Treasury uses the words “financial crisis” more than five times in a recent speech, the attraction to precious metals becomes more urgent.
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China, Gold and the Coming of Flood of Wealth
Source: www.GoldForecaster.com (4/28/08)
I have just returned from a 10-day trip to Southern China and Hong Kong. While I was there, I explored the Chinese attitude toward gold. If their demand for gold equaled that of other nation’s average individual holdings, then we would see their demand well into four figures. I wanted to know if the Chinese would really move towards gold in their portfolios.
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Cellphone Mining: The New High Grade Gold Source
Source: Reuters (4/27/08)
A tonne of ore from a gold mine produces just 5 grams (0.18 ounce) of gold on average, whereas a tonne of discarded mobile phones can yield 150 grams (5.3 ounce) or more, according to a study by Yokohama Metal Co Ltd, another recycling firm.
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Will Dollar Revival and Gold Price Decline Be Short-Lived?
Source: Mineweb.com (4/26/08)
If the perception that things are getting better continues, particularly in the US - and some economic indicators are already less negative than before - then the dollar decline may be halted, which in turn may stop gold price appreciation in its tracks. But anything which dents this sentiment, however briefly, like serious problems for another major bank, could rapidly send the position into reverse and see another gold price surge.
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Sustainability Strikes the Mining Industry
Source: The Gold Report (4/25/08)
As sustainable development issues gather momentum, they're beginning to influence the most important stakeholders of multinational corporations. Rather than risk alienating key constituencies such as banks, portfolio managers and shareholders or the countries in which they operate, companies are adding environmental and social stewardship initiatives to their agendas.
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Silver ETF Starts Off the Year Strong: Can It Continue to Shine?
Source: Don Dion, Seeking Alpha (4/25/08)
SLV is too young to have produced any reliable risk measurement data, but silver prices are notoriously volatile, and there’s every reason to think this fund’s performance will be as equally prone to gyrations as the commodity, itself.
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Gold Jewellery Demand Drops on Price Volatility in Q4 2007
Source: Mineweb.com (4/25/08)
The Digest said any long-term decline in gold jewellery demand was unlikely as sentiment toward gold remained very positive in key markets.
IRA Investors Increasingly Turning To Precious Metals
Source: Allen Sykora, Dow Jones Newswires (4/24/08)
Trey Hightower, trust officer who oversees precious-metals IRAs with the retirement-services company GoldStar Trust, said the firm's precious-metals transactions climbed 523% during the last eight months, and there are 6,500 to 7,000 current precious-metals accounts. The value of metal in retirement accounts through GoldStar as of Dec. 31 was $312 million, out of total retirement accounts of $770 million.
Gold Shares: Different This Time?
Source: David Galland, Casey Research (4/24/08)
...within the next couple weeks the big gold-producing companies are going to release their latest financials -- and they are going to impress, you can be sure of that. When people compare those results against the train wrecks occurring in almost all the other investment sectors, the gold stocks story is going to shine particularly bright. And, unless this time things really are different, a bet we wouldn’t take, these eye-opening profits should soon begin to translate into investor interest that unleashes the gold stocks.
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$200 Oil, $2,000 Gold
Source: James West, www.midasletter.com (4/24/08)
There will be a continuing chorus from ill-informed would-be oracles who will tell you the price of oil is going to decline with U.S. economic growth, and that gold has reached its peak and will now observe the traditional decrease in cyclical value, which you must strive to ignore.
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Silver Could Be Low-Cost Substitute for Platinum in Autocatalysts
Source: Mineweb.com (4/24/08)
A spokesman for Tokyo-based Mitsui Mining told Reuters that Japan, Europe and the United States are all planning to impose tighter regulations on exhaust emissions for heavy equipment, such as that used in construction and farming, beginning in 2012. "We hope this catalyst will be used in these vehicles, and this is the market we are targeting.
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Gold/Dow Ratio: Where Are We Holding?
Source: Adrian Ash, Seeking Alpha (4/24/08)
...The Fed’s new “reflationary melt-up” is clearly designed to keep stock prices buoyant. But it’s only adding to the case for gold, too. “I would be very surprised if the Dow Jones industrials/gold ratio didn’t decline to between 5-10 within the next three years,” said Marc Faber of The Gloom Boom & Doom Report recently. If that call proves right, it might come thanks to gold prices doubling, or stock prices halving, or more likely some combination of both.
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Storm in a Gold Teacup
Source: Mineweb.com (4/24/08)
A broader survey of resources stocks indicates powerful portfolio switches from certain sub-sectors, including gold, into iron ore stocks, along with coal stocks, and also, once again, oil stocks, which do not fall strictly under the umbrella of the mining classification.
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