Wednesday, March 01, 2006


Gold Steadies, Traders Look At $568-$572

Dow Jones Newswire has this update on trading. "Softer dollar sentiment as well as steady oil prices has kept the precious metals complex underpinned with gold holding and building on the $560 an ounce level, while silver has been in a far more volatile mood with fund/speculative interest featuring heavily, say analysts."

"April gold is trading up $1.50 at $565.40 an ounce, while May silver is up 2.5 cents at $9.830 an ounce. The traders add that gold's ability to move above and hold the $560 an ounce level gives a positive lift to the metals short-term outlook and suggests a test towards the $568-$572 resistance band as investors and speculators continue to be drawn toward gold's safe-haven qualities."

This is interesting to watch, because if gold fails to spring forward with so much bullish news behind it, traders will see it as not having legs. High noon!
I have never had any doubt as to where gold will end up long term. $600.00 is just another stepping stone. I do get the feeling those that are new to PM's and have not experienced the gut wrecking moves they can make may be in for a rude awakening. That will shake out those with weak stomaches though. I know I've had my share of below the belt blows.Of course I could be wrong and we may see-saw our way up. No, never mind it's going to be a slug fest!
I could easily imagine some profit taking upon every new or near record high. Later this year, it's probably going to have a good run because more slugish economic news will come out.
The Mogambo Guru has outdone himself

(I'm knee-deep in CEF with my fingers crossed.)
Ben And Other fellow bloggers!
Let's do Brain Storm weekend for investing ideas in this commodity bull market, which we are.
In the beginning of February'06
I've bought some shares of Adanac Moly (AUA-X) Canadian miner of Molybdenum, possible beneficial of catalysts boom for conversion of coal in liquids, batteries catalysts and other uses.
I paid .89 Canadian, today it closed at 1.97. Over 100% in a month.
I pick that up as a long play.
It is comforting, though, to know that my long play is up in short term too.
I have bought 8 stocks since I started my purchasing program in September'05. As of today 7 are up and only 1 down.
4 stocks are PM's, 3 Uranium and 1 is Moly.
Moly has been most successful so far. I am pretty sure there are many undiscovered Gems out there. Let's find them together.
By Gems I mean investment ideas like Moly or Uranium.
Any other ideas you guys heard in this Peak Oil/Uncontrolled Inflation/China/DangerousGeopolitics interesting times we are living?
Ben And Other fellow bloggers!
Let's do Brain Storm weekend for investing ideas in this commodity bull market, which we are.
# posted by Mike C., Chicago : 3:30 PM

Count me in!
I would say "Count me in!" too, except that I am new to PMs and don't have any particular insights other than to say, what is wrong with my naive approach of starting by examining where the institutions/funds are directing their money? Maybe avoiding what is wrong will direct us toward what is right.
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