Tuesday, January 31, 2006

 

New Highs For 'Former Wallflower'

The Canadian Press has the latest on the gold sector. "The Toronto stock market moved into positive territory late Tuesday morning as gold stocks continued to shine in the wake of rising bullion prices. On the TSX, the gold sector was up three per cent as the near-month contract on the New York Mercantile Exchange rose $3.40 to $569.20 US an ounce. Eldorado Gold rose 18 cents to $5.85."

"But shares in Apollo Gold moved down nine cents or 18.75 per cent to 39 cents on delays at its Montana mine."

"Gold futures climbed above $575 an ounce Tuesday, a fresh 25-year high, and silver prices reached 1984 levels as Iran appeared closer to a referral to the United Nations' Security Council amid concerns about the nation's recently resumed nuclear-research program. Metals traders also awaited the Federal Open Market Committee's decision on U.S. interest rates, due at 2:15 p.m. Eastern time, shortly after metals trading closes in New York."

"'As the Fed-watchers are keeping a keen eye on Mr. Greenspan's farewell gesture to the dollar, and as the watchers of mounting global instability are keeping a keen eye on gold's presence in their basket of assets, gold continues its energetic blossoming from former wallflower to an unstoppable powerhouse,' said Jon Nadler, investment products analyst at bullion dealers Kitco.com."

"At the same time, March silver climbed as high as $9.915 an ounce, an intraday futures level not seen since April 1984. It was last up 9.5 cents, or 1%, at $9.87. Looking ahead, Kitco.com's Nadler expects 'great feats from silver in coming months and years.'"

"Still, he is 'fully aware that the white metal is primarily an industrial commodity (albeit one gifted with more than a few historical monetary attributes) and that its fate is inexorably tied to copper production, as well as hopefully, continuing strong demand from Asian countries.'"

"When it comes to buying precious metals 'as an insurance policy..silver does make sense once the core gold allocation has been accounted for,' he said. 'As the monetary role of silver tends to reassert itself during gold bull markets, and the spill-over effect ('poor man's gold') takes hold in the investment community, silver also shines, and then some,' he added."

"Also in metals, April platinum headed higher for a seventh session in a row, up $6.90 to reach $1,086 an ounce after tapping $1,086.50, a record level for a front-month contract. The previous record was $1,085, though the all-time high for any contract month was $1,189.50, both levels reached on March 5, 1980."

"Sister metal palladium saw its March contract add $11.50 to $295.50 an ounce."

"The Amex Gold Bugs Index (HUI) moved as high as 344.63 points, a new record. It was last up 3.3% at 344.43, with an 8.2% rise in shares of Agnico-Eagle Mines (AEM)."

Comments:
OT: Tim Iacono has a pithy and well-expressed summary of the hazards of fiat currency in his latest blogpost:

http://themessthatgreenspanmade.blogspot.com/
 
what do people think of uranium? what do you think of this stock? I think it's almost like a uranium etf.

URANIUM PARTICIPATION CORP (U.TO)

Dines is big on uranium, I'll try and dig up some stuff. he did an FSO interview.
 
OT, but I'm considering abandoning my GLD etf in favor of some Krugerands. Gold was up $4.90 today and GLD went down, because there was a market-wide selloff after the Fed announcement. One share of GLD is supposed to be equal to 1/10th oz. of gold. Well, gold is $572 and GLD is $56.64, almost a dollar difference. This has happened a couple times this month already. If GLD is going to be succeptible to a slide like that, what happens if/when the market tanks?
 
thejdog, you've identified the specific reasons I'm staying away from ETFs like GLD. Sure you've got safety and storage issues that come with physical possession of the product, but at least you are not relying on the word of others that the metal is there, protecting the value of your investment.
 
JohnLaw!
I own U.to, but Dines dont have it on his list.
The only thing I can say about it is , that it looks like forming cup with a handle formation.
Mike.
 
here is the page with the interview of dines

James Dine on FSO show(this is an MP3)
 
You would think traders would rush into GLD/IAU if the market does tank because it is suppose to be a safe haven. If the traders close out all positions and take the proceeds and buy physical gold, that would indicate a huge non-confidence for the entire economy. That would surely be doomsday.

I'm increasing my physical metal allocation anyway.

The author of the article dismisses the SLV ETF speculation as a factor of the silver price.
 
Sorry OT again. I came across a FANTASTIC stock today: Portfolio Recovery Associates PRAA. Financials are terrific and they are poised to become one of the largest debt collectors in the country. Very well managed. Stock is up about 8% since 1st of the year, I believe alot of smart money is buying. Solid recession/housing bubble play.

I know many who post on here think the sky is falloing and we're headed towards Mad Max days. That could be true and if so the stock market is the last place you want to be. I tend to take a less pragmatic approach to it.
 
thejdog
"I know many who post on here think the sky is falloing and we're headed towards Mad Max days"

Strange. I haven't moticed anyone like that on this blog. Who are they?
 
Sorry OT again. I came across a FANTASTIC stock today: Portfolio Recovery Associates PRAA.

I have been looking at this one for a while.

Too bad the Mad Maxers will miss out on it as they pile their assets in physical gold to await the apocalypse.
 
Too bad the Mad Maxers will miss out on it as they pile their assets in physical gold to await the apocalypse...or the gold/commodities bull market!
 
...or the gold/commodities bull market!

You can only make money off the gold bull market if you intend to sell. I don't get the feeling you goldbugs could bear parting with your hoard.

I'll sell my AU investments as soon as the price intersects my lower trend line.
 
(you goldbugs)

I don't know any here.
 
thejdog:

Stay away from Krugs -- the government tracks all transactions involving those.
 
From Pravda... Standard&Poors prediction.


http://english.pravda.ru/world/20/91/368/16823_dollar.html
 
wmbz,

That jibes with my note under the "US Dollars Fate..." thread.
 
Stay away from Krugs -- the government tracks all transactions involving those.

Not really. A 1099B is required for 25 or more coins. Under that number and no form needs to be filed.

At current gold prices, 25 coins is more than $10K, so so any transaction involving cash or cash equivalents is required to be reported whether it is a krug or not.
 
ben, a few good articles today for a possible topic.

World heading for silver squeeze

Molybdenum And Green Economics
 
wrong link for the first article.

World heading for silver squeeze
 
amadablamdream:

Good catch. Gotta remember to read the fine print. Interesting how they trade at a discount because of it, though.
 
Gotta remember to read the fine print.

What has to be reported is actually pretty complicated. There is no rhyme or reason to it. Some specific coins have to be reported if you trade more than a specific number.

I seem to remember gold bars over a certain weight also have to be reported, a little less than a kilo if I remember right.

In addition some types of silver also fall under the law.

If you want to fly under the radar, buy small amounts for cash and take the hit you'll pay for doing it.
 
As far as Silver I believe it has to do with trade regs. ala the Hunt Bros. trying to corner the market. I think the number is 130 million oz's ?
Of which W. Buffet, B. Gates ,and G. Soros all own the max by law...I think we're in good company..Why didn't I buy more when I had the chance.....Ha
 
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