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fsail, dont worry I dont take it as bashing my friend
fsail, i do know where u r coming from. News is imminent, and should be then coming out seadily. In respect to the website, I believe they wish to take pictures of the propertieSSSS, which require some time. We all hate delays, but the delays are not for lack of working. I would rather they have everything in order and a proper strategy set out, even though it may take longer, then for them to fumble and stumble,jmho
spoke to the powers that be at USAU, all is good, a steady flow of news is imminent, so sit back, relax and have a cold one and a good weekend
THE PANIC BUTTON HAS BEEN PUSHED
Dear Comrades In Golden Arms,
This administration has its head in rarefied Wall Street air. They honestly believe the reason they lost Mass. was public anger at the banksters alone. Now they have set things in total flux both for the re-nomination of Bernanke and the loss of their bankster's backing, but also at a time when the Supreme Court declared no limits on corporate political giving.
Unleashing those corporate political funds will result in a battle bigger than the health bill in the sense of lobbyists over new banking rules.
All of this is meaningless looking forward to the November 2010 elections. All that counts is jobs, jobs and more jobs.
What is clear here is that the panic button has been pushed by the administration who still thinks they live in Wall Street, not Main Street. Be assured that Volcker understands the systemic disaster we are in, and will do nothing to pull the plug on the mountain of OTC derivatives. He is simply too smart for that.
Getting the banks out of the guaranteed risk business is a long term correction, but still not the basic problem. The horse is out of the barn, the damage has been done and there is no immediate or medium term fix in taking the banks out of the OTC derivative business.
The basic problem that still exists is the fraudulent OTC derivatives produced since 1991 that are yet to be addressed in any manner or form except through the capitulation of FASB, which permitted falsified values. All that did was make the situation worse.
Nothing that has occurred is dollar positive.
The economic reason for the dollar rally was the bullish Christmas financial party prediction that is simply non-existent and therefore not sustainable. It is a business activity bottom bouncing experience that can easily have its bottom plug pulled now that everything has been sent into a state of flux.
Stay the gold course. Things are becoming more, not less of a mess, and it is not hard to see. Only gold can guarantee you against the madness of our financial leadership. Remember the big economic lie works if repeated loudly again and again, but when the public feels the pain of the big lie it collapses in on itself. The man who invented MOPE made that statement. It proved true politically in the German campaign against the Russian winter. It imploded in Germany in 1944.
Economically it is appearing thin now. The voters have rebelled.
Respectfully,
Jim
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i believe it all boils down to who you know< ad John Perez knows a lot of people
PAPER GOLD
Dear Comrades In Golden Arms,
Because of paper gold, market games can be played. What cannot be done is for paper gold to produce bullion.
The bullies can attack the paper gold market in unison, but they cannot create supply in real bullion with the ease of highly leveraged paper.
The pros depend on the under-financed public to stampede under the pressure of fear of loss.
Believe me, I used to run the locals (pros) all over the lot, and on occasion I got significant paybacks.
However, in the final analysis all we did was add noise to a market that went from $40 to $887.50 Real gold (bullion) is in meagre supply.
What that means is algorithms must lose and fundamentals must rule.
All the violent trading resulting in ever increasing volatility in the gold price is but manic noise inside of a major uptrend that will make me look bad for having been too conservative in my year 2000 price objective of $1650.
If you had lived through a top in the gold market, you would know that without any question whatsoever, this is not it.
Ignore those writers who wish to sell a service by feeding on your fear. Gold is going to and through $1224.10 on its way to $1274-$1278. Following that it is on to $1650 and Armstrong and Alf's numbers.
Respectfully yours,
Jim
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anyhow, wonder how long obama and his people think they can hold down gold and keep falsely propping up the US buck, sooner or later it is going to burst
u mean .02
the great days will come, not worried
The Overwhelming Evidence For Peak Gold
Joe Weisenthal | Dec. 2, 2009, 5:51 AM | 33,262 | 53
PrintTags: Features, Gold, Commodities
6/13
Thanks to a major discovery in the 1980s, in Nevada, the US enjoyed a second peak
Source: The Oil Drum: Peak Gold, Easier To Model Than Peak Oil?
http://www.businessinsider.com/peak-gold-is-happening-everywhere-2009-12#in-most-countries-the-production-trend-is-down-thats-really-the-case-in-1-gold-producer-south-africa-where-production-is-down-violently-1
well, honestly, i cant argue with you on some aspects, but things should come full circle soon, we shall see
The Five Reasons Gold Will Hit $5,000
By Peter Krauth, Contributing Editor, Money Morning
Let me get right to the point. Gold's going to $5,000 an ounce.
I know that sounds preposterous to most people. In fact, some of you probably think I'm crazy.
But for a whole host of reasons, $5,000 may well end up being a conservative estimate.
So before you start posting comments that I've gone bonkers, hear me out...
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In 2001, gold traded as low as $255 an ounce. Within eight years, its price had quadrupled to more than $1,100 an ounce. How many investors thought that was possible, or even likely? Probably not very many.
Yet, it happened.
What's more, since hitting its secular bottom back in 2001, gold has posted a positive return in every calendar year. So far, the current bull market has been pretty orderly.
During the past 10 years, gold has indeed become the trade of the decade, beating out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and yes, U.S. stocks.
A crisp $100 bill invested 10 years ago would today be worth more than $400 in gold, $357 in commodities (as measured by the S&P GSCI Enhanced Total Return Index), $268 in oil, $190 in corporate bonds or U.S. Treasuries, and only $90 in U.S. stocks.
That's right: We're talking about a $10 loss in U.S. stocks over 10 years. Ouch.
Meanwhile, gold has embarked upon a secular upward trend that is far from over. If the 1970's are any indication, gold's going much, much higher from here.
When U.S. President Richard M. Nixon opted to close the gold window in August 1971, the yellow metal had already risen from its fixed price of $35 an ounce to $42 an ounce. By the time gold peaked in 1980, it had risen to $850, rewarding early investors with a 2,400% return. My guess is that any such forecast in 1970 would probably have been met with the same kind of ridicule I expect that my current projection could attract.
Granted, there's no guarantee that we're about to duplicate the 1970s. (I could certainly do without the disco, bell bottoms and leisure suits). But a s Mark Twain once noted: "History does not repeat itself, but it often rhymes."
And that could mean even sweeter returns for gold investors this time around.
In fact, let's crunch a few numbers - just for fun.
Why $5,000 an Ounce Gold Isn't Out of Bounds
To start with, let's take the 1980 peak price of gold - $850 - and adjust it for inflation. That would take the price of gold to $2,400 in present-day terms.
Better still, let's take the 2,400% gain that gold experienced during the 1970s and translate it into present-day terms. From the 2001 low of $255 an ounce, a 2,400% gain would take the yellow metal all the way up to $6,120 an ounce, making my $5,000 price projection seem a lot more reasonable.
But these are just superficial price comparisons. If we look at what the fundamentals are telling us, it's clear that gold at $1,100 is a long way from its eventual peak, meaning it still appears cheap.
So let's take a closer look.
Five Fundamental Reasons Gold Will Soar
Gold Fundamental No. 1: You Can't Ignore Inflation: The 2008 stock market panic sent stock and commodity prices - including the price of oil - into a tailspin. And that launched the big debate about whether inflation or deflation would ultimately carry the day. Keep in mind that since 2001 - under benign price inflation of roughly 2.5% - gold has managed to rise about 400%. Meanwhile, the U.S. Federal Reserve is widely expected to keep short-term rates near zero through this year, leaving the door open for rampant inflation.
Meanwhile, quantitative easing to shorten the recession has caused America's monetary base to explode. Starting in October 2008, during a very short span of only four months, the central bank doubled the U.S. money supply, going way beyond anything ever attempted in the nation's history.
Worldwide, central banks have rolled out an unprecedented $12 trillion worth of stimulus programs, with most of the money still to be spent.
Make no mistake, inflation will win out over deflation.
Gold Fundamental No. 2: Investment Demand is Exploding: Large institutional investors - hedge funds and pension funds - are making large allocations to gold, as are individual investors.
The proliferation of gold-focused exchange-traded funds (ETFs) bears this out. The SPDR Gold Trust (NYSE: GLD), the world's largest physically backed ETF with 1,100 tons of the lustrous metal, is the sixth-largest holder of gold bullion. Individual investors have never had an easier avenue for owning gold.
This isn't just merely a U.S. manifestation. According to the World Gold Council, demand advanced 15% from the second quarter to the third last year.
Asia, with a population that exceeds 2.5 billion inhabitants and a long-standing cultural affinity for gold, is stoking global demand in a big way. China is overtly encouraging its citizens to buy gold and silver, while offering them gold-linked checking accounts. China is primed to overtake India as the world's largest consumer of gold. A quickly developing middle class whose members are experiencing rapid escalations in disposable income are a major bullish driver for the price of gold.
Gold Fundamental No. 3: Central Banks are Becoming Net Buyers: India's recent purchase of 200 tons of International Monetary Fund (IMF) gold was the likely impetus that pushed gold up over the $1,200 level in December. But more important is the sea change that has seen central banks morph from net sellers into net buyers of gold. BlackRock Inc. (NYSE: BLK), one of the world's largest investment managers, said that 2009 was that turning point. If that was the case, it will have been the first time in 20 years, as central banks have been net sellers of gold since 1988.
Gold Fundamental No. 4: A Currency Crisis is Looming: The "PIGS" - Portugal, Italy, Greece and Spain (or "PIIGS," if you want to include Ireland) - aren't in very good fiscal shape. And they aren't alone. Iceland has already gone over the edge. The United States, the United Kingdom, and countless other economies are struggling. And that reality has ignited a crisis of confidence about fiat currencies in the minds of many investors. Money is nothing more than paper and ink, backed by the full faith and credit of the issuer. When investors find that their faith in the issuer is shaken, the value of that currency erodes. Additional sovereign-debt downgrades from ratings agencies are but one potential trigger of a currency crisis. Under such conditions, gold - the ultimate store of value, and the oldest existing form of money on earth - will soar as investors seek to protect their purchasing power.
Gold Fundamental No. 5: We've Yet to Reach the Mania Stage: As we've outlined before, the gold bubble that takes prices to all-time-record levels will inflate in three distinct stages. This process will start with currency devaluations in Stage One, will be fueled by growing investment demand in Stage Two and will experience its stratospheric ascent in Stage Three, the mania phase of this evolution.
Make no mistake, the $5,000 price point will most likely be reached in this third and final phase. The price of gold will behave like it is strapped to a jet pack. And today's market prices will be dwarfed by the levels gold prices will ultimately achieve.
Keep in mind, the entire gold industry has an aggregate market capitalization (value) below that of Wal-Mart Stores Inc. (NYSE: WMT) alone (currently about $210 billion). So as the crowd piles in, the "big money" to be made will lie with gold explorers and producers, where 1,000% returns will not be uncommon, even from today's prices.
All these fundamentals underscore that gold prices have plenty of room to run from here.
And since I expect gold will eventually reach the $5,000 range, that leaves plenty of room for investors to profit by entering at current levels.
It's Time to Make Your Move
Everyone needs some exposure to gold in their portfolios, no matter their age or risk tolerance. Owning some physical coins or bars makes sense, but it's complicated to do inside most retirement accounts.
That's why the explorers and producers of the gold sector promise the biggest payoffs. Although production costs will rise, as gold prices rise, profit margins are sure to expand even faster. Once cocktail-party conversations turn to gold, for any one of the reasons I've outlined, gold stocks will erupt and then streak for record highs.
When will this happen? I think it will take a few years. But with bubbles, or speculative frenzies, one never knows. Just this week, in fact, Robert R. McEwen, the chairman and chief executive officer of U.S Gold Corp. (AMEX: UXG), predicted that gold could more than quadruple to hit the $5,000 level by 2012. Some experts have labeled this expected move as a looming "superspike."
When this happens, gold is likely to create a whole new generation of millionaires, and even a few new billionaires. Despite the mania stage being several years away, the wise investor recognizes both the importance and the potential of investing in gold.
I have no doubt that today's $1,100 gold price level will eventually, in hindsight, look like an outrageous bargain.
My advice: If you own gold and gold shares, hang onto them and buy more on dips. If you don't, what on earth are you waiting for?
had a great time in Jamaica and am back, didnt get married, yet. Been sort of out of the loop. Seems some people are just a bit depressed about the stock. Well, you know, the markets are like a casino where you usually lose money and fast, so if you were looking for fast money, you are sol, but nothing has changed except for the price of the stock. No worries here, this will happen
GFMS predicts new gold highs in 2010, warns on 'vulnerability'
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By: Liezel Hill
13th January 2010
Updated 5 hours agoTEXT SIZE TORONTO (miningweekly.com) – The price of gold will likely rise above 2009's record of $1 226/oz this year, and could even climb as high as $1 300/oz if the global economic recovery proves sufficiently sluggish and new investment money continues to enter the market, Philip Klapwijk, chairperson of consultancy GFMS, said in Toronto on Wednesday.
However, he cautioned that the big role being played by investment demand leaves the gold market vulnerable to a major correction if and when investors start looking elsewhere.
Investors have been buying gold as a safehaven investment, as a hedge against inflation and in expectation that the metal's price will continue to rise.
Jewellery demand, on the other hand, has slumped dramatically as prices rose to record levels last year and, for the first time in 30 years, investors created more demand for gold in 2009 than jewellery buyers, Klapwijk said.
While investment inflows into gold remain significant, and look likely to continue that way, the market reliance on investment is “somewhat worrying” in the longer term.
Because of the market's dependence on investment, the biggest threat to the gold price will obviously be the eventual shift to “business as usual” in the world's economies, Klapwijk said.
“The honeymoon won't last forever. At some point the scenario does change, and then the investment case for gold becomes less appealing.”
Once gold's appeal begins to dim, all it will take is a halt or a deceleration in the flow of money into gold to have a big impact on prices, Klapwijk cautioned.
“The market, if you like, has become a bit like a junkie - it has become more and more dependent on bigger and bigger fixes of inflow from the investor community.”.
ROUGH RIDE TO $1 200
For now, however, the outlook for the yellow metal remains rosy, with investment demand forecast to grow robustly through 2010.
GFMS believes the likelihood of a slow road to economic recovery is high, with the potential for a “double dip” this year in the US, Europe in Japan.
“We continue to be in an environment of zero or negative real interest rates, there are still very significant question marks being placed against the US dollar in spite of the rally we've had in the last few weeks, [and] inflation expectations continue to rise.
“And this is creating a backdrop which remains pretty positive for gold investment,” Klapwijk said.
He said it is likely that there will be an increased flow of new money into the gold market from institutions like insurance companies and pension funds, and with sovereign wealth funds becoming more active.
“And I think in the second half of the year we could see prices increase above the $1 300 level quite easily, if that flow comes into the market.”
GFMS has forecast an average price of $1 175/oz in the first half of the year, and expects gold will trade between $990/oz and $1 230/oz during the six-month period.
It will be a “rough” ride, however, as prices will likely remain volatile, Klapwijk commented.
“And we do think there is a possibility for a significant correction in the next six months.”
THE NUMBERS
According to GFMS data, gold mine production rose 6% in 2009, to 2 553 t, after three consecutive years of decline.
However, although output from mines may rise again marginally this year, production will likely resume its decline in 2011 and onwards, Klapwijk said.
Australia was the second-biggest producer last year, behind number-one China, with South Africa relegated to the bronze medal position.
It is no surprise that, with gold prices at record levels, scrap supply increased by around 27% in 2009, to a new all-time high.
On the demand side, jewellery fabrication demand fell by 23%, to a 21-year low of 1 687 t, while other fabrication decreased 8%, to 639 t.
World investment demand doubled year-one-year, to 1 820 t.
Edited by: Liezel Hill
Gold Price Set To Correct
Thu, Dec 31, 2009
Feature Article, Gold Articles
By Kishori Krishnan Exclusive To Gold Investing News
We would not like to be a party pooper, but the near term risk for gold remains very much on the downside.
Throughout 2009, gold price has been pretty steady. No doubt, it ended the year 24 per cent stronger than from the start of the year, but one needs to understand the why’s and how’s of the `supposed’ bull run.
The fact that central banks were deserting the US dollar and shifting their holdings into gold brought about panic in the investing community.
An added catalyst for the surge at the end of 2009 was the Reserve Bank of India’s purchase of 200 tonnes of gold at a high.
Gold price shot through the roof. Starting the year at a London fix of $874.50 an ounce, gold rallied through $1200/oz to hit a high of $1226.60 early December. Last week, the metal was more than $140 lower at $1085.25.
Moreover, most analysts are predicting that the greenback’s slide has already finished its run. There could be a possible buy-up of US dollars, given that monetary agencies around the world are preparing for a rise in interest rates sooner than expected.
And if this happens, and the US dollar takes off in the New Year as nations attempt to anticipate the expected rise in interest rates, gold is bound to hit terra firma.
Silver and platinum prices too might follow.
Sorry to be the bearer of bad news, but the fact of the matter is that the gold price has been held hostage by the strength of the US dollar. And that despite holding promise that it would enter the new decade by posting fresh highs, the gold bull’s reign has clearly been secured.
End of decade
On December 31, gold futures rose, capping the ninth straight annual gain. Gold futures for February delivery climbed $3.70, or 0.3 per cent, to $1,096.20 on the Comex division of the New York Mercantile Exchange.
“Gold is my favorite because it’s real and honest money,” said Michael Pento, the chief economist at Delta Global Advisors Inc. “It prospers in an environment where there’s currency depreciation.”
But check out this report by Resource Capital Research (RCR) in its RCR Gold Company Review for the December quarter 2009 - “There is a high degree of speculative momentum buying behind gold’s recent surge, and without support from demand fundamentals the near-term risk for gold at the moment remains very much on the downside. For that reason, we are cautious on the medium term outlook for gold, and expect it to trade down from current overheated levels, into the $1,000 to $1,100 an ounce band in the next six months, with periods of US dollar weakness likely to produce short term rallies,” notes RCR.
As for the buying by central banks, RCR has said that such a sustained move “was not realistic” given the liquidity of physical gold markets and also given that central banks are inherently conservative ‘value purchasers’ and unlikely to be aggressive buyers of a supposedly ’safe haven’.
The inherent risk in buying the yellow metal at this point also explains what funds, dedicated to the metal, are doing. An official of BlackRock Gold and General says meaningfully, “While we have always believed gold should be a small part of a diversified portfolio, we did not want to see widows and orphans put their life savings into it.”
Don’t miss the cautious underpinning of that message.
Wither 2010?
Analysts say the outlook for 2010 depends very much on whether US interest rates start to rise, which could lift the dollar and consequently knock gold.
Not to forget the fact that cash-based markets such as precious metals are likely to experience inflation as record amounts of new money have been printed during the past year.
There are optimists though. BBC’s business editor Robert Peston says: “If we are in for a period of slow steady recovery, in which interest rates rise, gold is greatly overvalued. But if the dollar and sterling were to plunge - well, gold would glisten even more than it has.” Which way things fold is anyone’s guess.
So, for the first week of the new year, we think gold will continue to correct its position. You have been warned.
is there rhyme or reason to any stock and its price, nope, not really. When we become a producer then the price of gold can be an arguement
Many Happy Returns of Ye Year
By Jon Nadler
Dec 31 2009 10:21AM
www.kitco.com
Good Day,
Year-end book-squaring continued during the overnight hours, this time in favor of gold, oil, and the euro for a change, as a rather large wave of dollar selling hit the market and brought the US currency to just under 77.50 on the trade-weighted index. Bargain hunting by locals over in India helped support the move to higher ground in gold, albeit the stand-out performer early this morning was palladium. The noble metal gained 2% to vault above the $400 –its highest level since July of 2008. As expected, we have seen some hefty day-to-day moves in gold since the middle of last week, and a good portion of them were counterintuitive as well as outsized but that’s the nature of thinly traded markets.
Gold prices moved within a ten dollar range of from $1096 to $1106 as the thinning ranks of participants made a few final trades for what has turned out to be a very good year. The New York spot bullion price dealings opened with a $12.60 per ounce gain in gold, which was quoted at $1104.70 against the aforementioned slippage on the dollar index and against a 1.440 tick in the USD/EUR pair. Silver showed a 22-cent gain on the open, quoted at $16.97 per ounce. Platinum rose $9 to start at $1464 and palladium climbed $10 to the $402 level per troy ounce. Rhodium was $20 higher than our last reported $2340 level.
No doubt, the ‘big’ question, for some, on this, the last trading day of 2009, is whether gold closes at, under, or above the $1100 mark. It may not matter all that much, since, as of this writing, the final gold return tally for this, the ninth straight year of prices gains in the metal, stands above the 25% mark and the average price for the year, is at $972.35 per ounce. Obviously, many a buyer’s focus is on that profit metric. However, when it comes to that yardstick, “poor man’s gold” is set to finish the year with a 50% gain –obviously, double that of its presumptive price leader – you know, the one that got all the headlines.
And then, there is platinum. The unrealized paper gains for that unique metal stand at 63.5% after having held it for the past 365 days. Palladium? Glad you asked. Had you bought it at $183 an ounce a year ago, you would have a 219% return on the investment. A number that is neck-in-neck with the other stand-out performer in the precious metals complex: rhodium (at 220%). Said it once, will say it again: gold (in general) is not for ‘making money’ but for preserving it. If return on capital (rather than the return of it, as the adage goes) is the object of your desires, and your sense of timing and available discretionary funds are both there, well, the above performance metrics speak for themselves. It’s white, not gold, when it comes to ‘green.’ As for ‘black’ well, oil is set to end the year up nearly 80%, the biggest yearly gain since 1999.
Elliott Wave analysis (as of last night) opines that: “Gold remains on track to continue working lower over time. Shorter term, there are many potentials, including a bigger near-term bounce. If spot prices close beneath $1181.20 tomorrow [today], and the odds are pretty high that they will, gold will register a major bearish reversal bar on the monthly charts.”
As mentioned last week, at $1100 an ounce, gold closes the year 29.9% higher than its three-year average level of $846.56 per ounce, and each one of those three 12-month periods can easily be classified as having been ‘in crisis.’ A return to that three-year average cannot and should not be ruled out in the coming year. However, neither should the presence of a core 10% allocation in the yellow metal in one’s portfolio, come whatever may. And now, a bit of year-end (and forward-looking) wisdom from a name that is not unfamiliar to those in the ‘golden’ niche.
Forbes fills us in on his thoughts: “Value maven Jean-Marie Eveillard is no trendy gold bug, but he suggests individuals put 5% to 10% of their assets into the metal. Eveillard believes the current level of economic uncertainty is so great, and so much depends on the Fed getting things right, that gold is one store of value that no value investor should ignore.
For individuals "a stake below 5% is irrelevant and anything more than 12% becomes more than insurance," the Parisian native says in a noticeable accent. Insurance against precisely what, Eveillard doesn't claim to know. He believes the Fed's actions are critical to how things play out.
But don't go into this with quick trading profits in mind, warns Eveillard. The risk that gold's price could sink by a few hundred dollars is especially prevalent at a time like this--when fear remains in the air, prices of gold and other commodities have been bubble-like and late-night TV pitchmen are offering to buy gold jewelry sight unseen. The metal's price is also highly sensitive to the dollar and, thus, the U.S. economy. Its price could take a hit if growth picks up and rising interest rates make U.S. Treasurys more appealing. "If authorities engineer a recovery that is not inflationary it would be a considerable negative for gold," he says. "All of a sudden tax revenues would increase and the credit of governments would look better."
Forbes Editor William Baldwin reinforces Mr. Eveillard’s advice –but, with plenty of caveats. It’s all in the individual’s perspective, says he. The key take-home assignment however, is the same as we noted up above, and one that is frequently heard in James Turk’s own presentations: Gold is not an investment, despite being many other good things.
Says Mr. Baldwin that there is: “No question that having 10% of your savings in the heavy metal would have taken the edge off the sharp losses you probably experienced in the past two years. But don't let recent history warp your thinking. Look at several decades of results before concluding that gold is a moneymaker. Also psychoanalyze yourself. What is it about this barbarous relic that attracts you?
Half of precious metals investors are thrill seekers. Volatility turns them on. Lately, these gold bugs have had the time of their lives. Maybe there's no harm done. Investing in an exchange-traded bullion fund is no worse than spending money at the racetrack. The other half of buyers has the reverse need--a way to reduce the month-to-month jitters in their net worth. If you are in the jitterbug category, Eveillard is talking to you. Yes, there have been times when rising gold prices would have offset losses in stocks or bonds or both. At other times, it didn't do its job. When the world's financial system was on the verge of collapse a little over a year ago, gold wasn't doing particularly well.
At what cost do you purchase this insurance policy? The chart displays the real return on gold since 1979. I have docked gold prices for a 0.4% annual custody cost (that being the fee for the most popular gold ETF available today) and for the cost of living. On this scale gold looks like a “nothingburger” of an investment.”
So, what will 2010 bring with it: more of the same, or a new paradigm? Whatever it turns out to be, remember, it matters not. There are, after all, much bigger “worry” items on the calendar as we go forward, since we are now (once again) being firmly assured that “The End” is really nigh (if not next year, then by 12.22.2012, for sure).
The putative return of Quetzalcoatl will just happen to also coincide with the final “departure” (from the living) of the US dollar but, booking and enjoying mega-profits in gold will seem like a futile exercise when trying to simply survive all the fire and brimstone (which, no one will, anyway). But, hey, in the interim, we have 1087 days to ‘go for it’ any which way we like to. Party on, Wayne! And not like it is 1999, but more like it is 2009….
Speaking of parties, and of 2009,
To all of our readers worldwide, we wish
A HAPPY, HEALTHY, AND MOST PROSPEROUS NEW YEAR!
Jon Nadler
Senior Analyst
Kitco Bullion Dealers Montreal
Direct: 1 (514) 875-4820 ext. 1360
US & Canada Toll Free: 1 (877) 839-8036
Website: www.kitco.com and www.kitco.cn
E-mail: jnadler@kitco.com
just dropping in, sweating from Jamaica. All is good on the USAU front, relax, if you got the time you will do fine. Later
LIVE FROM SUNNY (AND HOT) JAMAICA
INTERVIEW-US Gold CEO sees gold price soaring
12.22.09, 11:39 AM EST
USGOLD/ (UPDATE 2, INTERVIEW):INTERVIEW-UPDATE 2-US Gold CEO sees gold price soaring
* CEO sees gold at $2,000/oz by end of 2010
* Could rise to $5,000 in 2012-2014
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Yahoo! Buzz* Price driven by supply shortage, weak dollar
(Adds comments on consolidation, US Gold projects)
By Steve James
NEW YORK (Reuters) - A gold supply shortage and governments printing money will likely drive up the gold price to $2,000 per ounce by the end of next year and above $5,000 between 2012 and 2014, a gold mining executive said Tuesday.
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This is an unbalanced puff piece that ignores the conflicting information from neutral economists in favor of giving space for what amounts to a free advertisement for gold. As a Thomson Reuters emp
Read All Comments (2)Post a Comment"Annual mine production is declining and costs are going up, so that means higher prices," Rob McEwen, chairman and chief executive officer of US Gold Corp , told Reuters in an interview.
"By the end of 2010 I see the gold price at $2,000 and before the game's over at over $5,000."
Asked when that might occur, McEwen said: "That will probably be in 2012 to '14, because of lack of supply and also gold is money, it's a currency.
"It's only used as a currency in times of economic distress, and we're at one of those points -- one of three in the last 110 years."
Toronto-based US Gold is a junior mining company with land holdings in Nevada and Mexico where it is carrying out exploration drilling. McEwen has extensive experience heading several gold mining companies over the last two decades.
Asked if his bullish gold price view meant he did not see the economic situation improving in the near term, he said: "I think our governments will be printing more money and our dollar will buy less."
Gold, which set record highs above $1,200 in recent months, hit a seven-week low Tuesday at $1,087 per ounce in London, hurt by a firmer U.S. dollar.
"There's just too many dollars out there and too many people looking at their investments disappearing," McEwen said. "The trend is that most Western governments right now are trying to solve the economic problems by printing money.
"It's a short-term measure but the pain's going to come down the road."
McEwen noted that the gold price had risen from $250 an ounce in 2001 and that was attracting more investors. "But gold is still not a component of most portfolios," he said.
Asked how increased demand for gold would affect mining for the precious metal, McEwen said he expected more consolidation with big companies buying up juniors, who carry out much of the exploration on single projects.
"The junior sector has been lagging considerably behind the intermediate and senior producers, because of their negative cash flow, while the others have positive cash flow from their production.
"With that declining production profile, the seniors will go out and look for discoveries and they'll buy them," he said. "They have large treasuries, they need growth and the juniors are providing it."
Asked if he would consider an offer for US Gold, McEwen said: "As shareholders you're always looking and I'm the largest shareholder in the company, and my interest is to see a higher share price."
McEwen said US Gold had been drilling all year at its Nevada holding adjacent to Barrick Gold ( ABX - news - people )'s Cortez project and had expanded its resource there and expected a feasibility study next year.
At its El Gallo project in Mexico, "we have a high-grade silver discovery that seems to be growing in size" with a resource estimate expected in the second quarter next year. (Reporting by Steve James, editing by Dave Zimmerman and Matthew Lewis)
it will be, and so will usau
She'll (USAU) be coming around the mountain when she comes, she'll be riding a golden chariot when she comes....hang in people, the good, better and best is yet to come. I am heading to Jamaica for a few weeks, 3 and a bit, but will be in touch. Have a merry christmas all and a profitable new year
Can Gold Destroy the Platinum Market?
By Greg McCoach | Friday, December 18th, 2009
It's been the 'Holy Grail' of the gold market for decades...
A mainstream industrial application.
Today, technical breakthroughs in automobile emissions devices may have just ended that wait.
Gold may be the next generation of "technology metals," but what's good for gold may be devastating to other members of the precious metal family.
In fact, advancing technologies in autocatalysts may cause...
Demand for Platinum and Palladium to be Cut in Half
One of the biggest risks to platinum and palladium prices has always been their heavy dependence on the automobile industry.
That's because more than half of the world's demand for these metals comes from the global autocatalyst market.
So a new autocatalyst technology that doesn't require their use puts platinum and palladium prices in a very sensitive situation.
And that's exactly what started to worry platinum and palladium investors when one company developed a new metal alloy that substituted traditional catalyst metals for gold.
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We're having a great recession.
On top of SIX (6) triple- and quadruple-digit winning stocks that average a gain of 1,051%, we're making money hand-over-fist with a little-known, physically-backed gold investment that doubles our profits.
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Privately-owned Nanostellar Inc. recently designed and developed a new metal alloy for autocatalysts using gold for the first time.
The company says the new alloy can improve the performance of diesel emissions control catalysts by 25% to 30%.
The substitution of gold for platinum in autocatalysts even makes good economic sense.
Gold is ten times more abundant, and therefore has always been much cheaper than platinum.
The world's supply of gold is also less geographically concentrated. More than 90% of the entire world's platinum is produced from only four mines in Russia and South Africa. Gold, on the other hand, has been discovered in economically minable qualities on six continents. This makes gold less prone to output disruption.
The problem with substituting gold for platinum or palladium in autocatalysts, however, has been in the chemistry.
Gold is an excellent oxidation catalyst, but high temperatures greatly reduce the metal's catalytic qualities.
Will Gold Completely Replace Platinum or Palladium?
Autocatalysts convert over 90% of a vehicle's exhaust pollutants — including carbon monoxide and particulate, which contains known cancer-causing compounds — into less harmful carbon dioxide, nitrogen, and water vapor.
For now, probably not.
And the demand for platinum and palladium is safe.
At the moment, the financial incentive to use gold over platinum is no longer quite so attractive.
Gold prices are currently about $1,100 an ounce, compared to ~$1,400/oz for platinum. Even though gold is still 20% cheaper than platinum, the additional research, development, and manufacturing costs whittle this savings down.
Ultimately, if gold should happen to progressively replace platinum in autocatalysts, platinum prices would quickly fall, making it again more cost-effective.
So it appears that the only real advantage gold has in this context is its more favorable supply profile.
This may be attractive enough to persuade car companies to consider using it as a catalyst at some point in the future, so long as the price differential becomes rather more competitive.
For the time being, however, it appears that gold will not replace platinum or palladium in autocatalysts.
Autocatalyst technology, however, continues to develop. And it appears that a gold/platinum/palladium alloy — such as the one developed by Nanostellar Inc. — could be used in vehicle emissions control devices for diesel passenger vehicles in the next couple of years.
And here's the thing...
Gold is rapidly becoming one of the world's top "technology metals." It is one of several "technology metals" included in the $273 billion worth of rare earth elements found in Greenland vital to important modern technologies.
Industrial demand for gold is still weak compared to other precious metals. But developers are finding new industrial applications, like Nanostellar's catalyst alloy, for gold all the time.
And in the coming years, advancing technologies will inevitably create even more growth opportunities in the industrial demand for gold.
Good Investing,
Greg McCoach
Editor, Wealth Daily
Investment Director,
The Mining Speculator
Greg McCoach's Insider Alert
pmunch, I am going to Jamaica instead
Moving to Haiti... Because It's Better Than the States
By Dr. Steve Sjuggerud
"The U.S. is terrible now... I have more opportunity in Haiti."
Now that's a sentence I never thought I'd hear. But the guy who said it backed it up. He was my cabdriver in Miami over the weekend.
"I started a grocery store back home in Haiti a couple years ago. My wife already moved back to Haiti to run it."
"But what about the crime and the government there?" I asked. "Aren't you worried?"
"Where I grew up... it's quiet," he told me. "It is NOT safe in the capital city. But I live a long way from there. I have to take a flight from the capital to get to my hometown. To answer your question... Put it this way, Haiti can only get better from where it is now. But the U.S. seems to get worse every day."
Then he went on a Rush Limbaugh-style tirade about undeliverable government promises on health care and the environment and out-of-control government spending. He finished with: "At least the Haitian government knows it is out of money."
Ouch.
He's right... Technically, a U.S. government default on its obligations is way closer than you think. Check out this Reuters news headline and story from yesterday (emphasis mine):
US House to vote on short-term debt limit hike
WASHINGTON, Dec 15 (Reuters) – The U.S. House of
Representatives will vote on a short-term boost to the debt
limit this week to avoid a government default, House
Democratic leader Steny Hoyer said on Tuesday.
US Leaders are considering a hike of roughly $200 billion to
$300 billion. "Essentially that will get us an additional two
months of fiscal ability," Hoyer told his weekly news
conference.
Yes, the Haitian cabdriver was right... At least the Haitian people know their government is broke. Americans have no idea. It's not a crisis until... well... it is one.
"So where do you get merchandise for your store?" I wanted to change the subject a bit. This guy was getting a little too intense for comfort.
"From here in the States," he said. "Say a 50-pound bag of rice costs $30 here. By the time it gets to the grocery store in Haiti, I've spent a total of $60. But I still make a little money on it. And it's a better living than here in the States."
"You mean you can make more money with a grocery store in Haiti," I asked him, "than you can by driving a taxi in Miami?"
"Not really. What I mean is, my money goes much farther in Haiti, so my quality of life is much higher there."
Gee. The guy made sense. All around.
What has America come to when a cabdriver wants to leave "America, the land of opportunity" to become an entrepreneur in Haiti?
Guys like this cabdriver – young entrepreneurs starting with nothing – are what has made America great for generations. But now, instead of staying here, they are going back to their home countries to get rich.
America was made great because you've had the freedom to become whatever it is you could become... not because the government spends trillions more in taxpayer dollars than it takes in through taxes.
What the Government Should Do to Save America
It's Almost Too Late to Escape Pelosi's New Year's Eve Tax Trap
So if you don't want to move to Haiti, what can you do? Right now, you can let your politicians know that if they're voting in favor of expanded government programs, then come reelection time, they will not have your vote.
When there's more opportunity in Haiti than at home for a young entrepreneur, then America has seriously made a wrong turn.
Good investing,
Steve
Are U.S. and China Together on Gold?
by Rick Ackerman on December 17, 2009 12:01 am GMT · 8 comments
With Time magazine’s momentous selection of Ben Bernanke as Person of the Year, there were reports of people dancing in the streets in, um, Oslo. Leave it to Time to figure out a way to make Henry Luce roll in his grave while the magazine tries to outdo rival Newsweek in the race to claim publishing’s trophy for irrelevance. While the understandably isolated delirium over Bernanke’s selection subsides, we thought we’d update the prospectus on gold with a contribution from a Rick’s Picks subscriber who has requested anonymity. His thoughts run counter to the popular notion that investors can count on steady buying from China to lend buoyancy to bullion quotes. As the writer makes clear, China may have a mind of its own, and it will not always be perfectly aligned with the thinking of gold bulls. Here we go:
While many precious metals bulls have been insisting for months that China is gold and silver’s greatest ally, we saw first-hand last week exactly how capable the Chinese are of pulling a rabbit out of a hat when need be. Much of the finger wagging for the recent decline in the price of gold – as usual – has been directed towards those dastardly Americans. This time
around, the gold bull’s disdain had to do with the recent US jobs report on December 4. Yes, the numbers – which are unquestionably fabricated – had an impact on the precious metal markets; nevertheless, those gold bulls who insist upon using the adage of “see no evil, hear no evil, speak no evil,” where China is concerned are fooling themselves and living in a sugar-coated dream world.
A full two days ahead of the jobs report, Chinese officials called gold’s recent surge a “speculative frenzy.” Yet, it is the jobs data that bears the brunt of the blame for gold’s pullback. China had nothing whatsoever to do with this? Since when did they become our friend? Furthermore, how do we know the U.S. and China didn’t act in unison here? A little of the “I’ll-scratch-your back, you-scratch-mine,” thing between old friends.
Damned Lies, and Statistics
Phony jobs report or not, who in their right mind believes statistics coming out of the U.S. to begin with? Perhaps those who frequent tractor pulls and WWE wrestling events are so naive. Maybe even Middle America. But then, they’re not typically the ones buying gold, are they?
Big government is big government, and while China and the U.S. clearly have their differences, they also have a responsibility to co-exist and cooperate wherever possible, even though what we read in the papers and see on television often appears to dispute that. Why would anyone think China is any less qualified than the U.S. for pulling off a performance in price suppression where gold is concerned? Now that is naïveté.
(If you’d like to have Rick’s Picks commentary delivered free each day to your e-mail box.)
gold is back on its climbing strategy, USAU will be doing the same
Some Key Numbers to Watch in Gold
This has been a great year for gold, but investors can’t seem to shake the jitters they acquired in 2008, when prices plunged 35% between March and October after poking briefly above $1000 for the first time. Is last week’s 10% selloff the beginning of another murderous correction? We don’t think so, although it could take a few more weeks for prices to consolidate for the next strong push. But more immediately, we expect the Comex February contract to ease to a minimum $1090 in the days ahead. That would represent a $38 decline from yesterday’s settlement price and bring the total correction to slightly more than 11 percent.
Although we nailed last week’s 1227.50 top within 40 cents and turned cautious, it is often far easier to forecast interim highs in a bull market than to predict exactly how far a correction will go. In any event, we’d suggest keeping the 1090 target well in mind this week, since, if it fails to provide a strong bounce, that would imply more weakness ahead. Using Hidden Pivot analysis, we can gauge the strength of the downtrend by the way in which it interacts with pivots both major and minor. While we remain somewhat negative on gold at the moment, we’re prepared to turn bullish on a dime — but only if very specific conditions are met. In this case, February Gold would have to rally directly to at least 1154.60 after hitting a tripwire at 1139.30 either today or tomorrow. That would create a bullish “impulse leg” on the hourly chart – a feat that gold has accomplished once since last week’s breakdown, only to reverse unexpectedly the following day.
Read the Rest of the Article
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pmunch, you got that right. There are some big people who like to acquire nore stock down at these levels , and as long as people keep selling, they will keep buying. USAU doesnt have to move on news, which there will be plenty of, but it will run when people say its about time, and then NITE will become a net buyer instead of a net seller
predictor, nite is possibly shorting also, that would be a bonus
predictor, no one ever said that NITE was anywhere smart, they are more of a thorn in the thigh and pretty dumb to boot. It will break when its ready
It is not necessarily the news that moves a stock, it is individuals, and my thinking is that if someone wants to grad a large amount down here and keeps getting fed they will, until they are ready to rock. I am not worried in the least people
MANY more bullits to be fired and they will all be on target and in the bullseye
AS PROMISED, USAU NEWS, more to follow
USA Uranium Acquires Pasadena/Occidental Mine and Consummates Comstock Royalty LLC FinancingLAS VEGAS, NV--(Marketwire - December 14, 2009) - USA Uranium Corp. (PINKSHEETS: USAU) (http://usauranium.com) President Karl Harz is pleased to announce that, "We have now completed the acquisition of our second former producing mine located in Southern California, the Pasadena/Occidental Mine. Utilizing our policy of 'gold is where you find it,' management had identified several strategic targets for the Company early in the year."
Mr. Harz further stated, "With the completion of this acquisition USA Uranium has successfully achieved the second of the primary properties the Company had targeted. The fact that this property has been continuously owned by the Vendors since the 1930s and that for the first time since then, they have reposed their trust in USA Uranium to explore and develop this former prolific producer, is a testament to the vision and professionalism of our acquisition team. We are very confident that additional examination will verify our opinion that this Property will significantly expand shareholder value."
The Pasadena/Occidental Consolidated mine is a conglomerate of nine patented mining claims and three unpatented mining claims on approximately 185 acres in the Cargo Muchacho Mining District of Imperial County, California. The district in which the Pasadena/Occidental mine is located has been identified as a highly mineralized area in the Cargo Muchacho Mountain range in south east Imperial County and is well known for its production of gold. This mine has not been mined for its gold reserves since the 1930s even though core sampling test have shown high grade levels of ore. The gold bearing veins of this district have considerable depth and have been identified in the Pasadena and Occidental mines from previous operations and core sampling.
Additionally, CEO Ken Berscht is pleased to announce that the Company has completed a Capital & Development Agreement with Comstock Royalty LLC, a private Nevada company. USAU will now receive the first tranche of financing consisting of $200,000 for general working capital purposes. USA Uranium is excited to be the first client to meet the stringent due diligence requirements imposed by Comstock Royalty before consummating a transaction. Comstock Royalty LLC is a precious metals royalty and equity financing company. USA Uranium has agreed to provide Comstock Royalty LLC with both an equity and a royalty interest in exchange for the Capital & Development Agreement.
Comstock Royalty LLC believes that there is currently a unique opportunity in financing early stage gold and silver exploration and production projects like USA Uranium, through the acquisition of royalty and equity interests without incurring many of the costs and risks associated with individual mine operations. Comstock Royalty LLC together with its members and joint venture partners acquires interests in precious metals royalties as well as equity interests in potential producers while providing the exploration Company with the funds necessary to continue to acquire and develop their properties. Comstock Royalty's primary investment interest will be focused in Nevada and California with special attention to famous historic proven past gold and silver producers.
Management of Comstock Royalty stated that they, "Plan to build a portfolio of royalty projects which will have the ability to produce future revenues. The company plans to generate high-margin cash flow using a long term low exposure model of diversified NSR Royalties and equity interests rather than incur the capital costs of developing individual properties. Comstock Royalty believes in the positive outlook of higher gold prices and believes that a portfolio of royalty and equity interests will provide growth for our members and participants in this powerful gold bull market."
By becoming a member in Comstock Royalty, the member acquires both an equity interest and a percentage of the metal produced from a given public Company's property in exchange for a front end payment, without assuming any responsibility for the actual mining operation. Comstock Royalty principals and advisors, within the company sphere, bring over 75 years of senior experience & management, with expertise in the fields of mining geology, engineering, mining finance and gold trading.
John Perez, Director of Communications said: "USA Uranium's growth-focused acquisition and seasoned exploration model coupled with the partnership with Comstock Royalty is an ideal arrangement which will significantly increase shareholder value by providing considerable leverage while allowing USAU to mitigate some of the downside risks faced by traditional mining companies. Comstock Royalty opens up new prospects of the 'gold is where you find it' model, and we look forward to working with Comstock Royalty and utilizing the royalty model as we progress into the new era of this gold bull market. We are working with the $1350.00 per oz gold target given Goldman-Sachs, which clearly places USA Uranium and Comstock Royalty in excellent position to grasp a solid position in the gold-backed real estate and exploration and royalty sector."
Contact:
John Perez
USA Uranium Corp.
Director of Communications
949-280-4323 office
888-845-4869 fax
usaupm@gmail.com Click here to see all recent news from this company
THE START OF MANY USAU NEWS RELEASES HAS NOW BEGUN, we are going to go much higher all, njoy and merry christmas
Dear Wealth Daily Reader,
The vote will be in by Christmas.
That's what senate majority leader Harry Reid recently proclaimed.
The law, when it passes (and it will pass), will mark yet another nail in the coffin for the dollar... and another massive jump in gold's record-breaking run.
And it's coming before January 1st.
Trust me, if you're looking to take advantage of these soaring gold prices before it's too late, get a load of this.
You see, our international gold guru, Greg McCoach, recently uncovered a very powerful investment in the gold world...
... One that pays everyday investors double the gains that gold makes.
You read that right. Double the gains.
And in your free report that I've attached below, I'll show you exactly how it works - step by step.
But hurry, gold's next surge is only a few more days away!
Good Investing,
Steve Christ
Editor, Wealth Daily
Gold's "Doubling Effect"
Thanks to this unique tool, every time gold gains just 1%, you make 2%... a 25% gain pays 50%... a 100% gain pays 200%... a 500% gain pays 1,000%!
But you'd better hurry. As you'll see over the next five minutes, the price of gold may very soon super-spike higher than $5,000/oz!
No problem Blue Horseshoe. Dont know if you've been following the USAU story, but the story hasnt even really started yet. We are not even past the inside cover yet here. I think in 6 months this couls be 25 or better, and that may be conservative, pay attention to your pension people
SANTA CLAUS IS COMING TO TOWN
USAU, will be a major mover in the next 6 months
Russian Central Bank to buy 30 tonnes of gold from Gokhran
Russia's Central Bank will increase its gold holdings by around 5% by buying 30 tonnes of gold from the State repository which had been planning to sell the gold on the open market.
Author: Polina Devitt and Robin Paxton
Posted: Saturday , 12 Dec 2009
MOSCOW (Reuters) -
Russia's state repository will sell 30 tonnes of gold worth $1 billion to the central bank next week, a source at the body said on Friday, keeping the metal inside Russia after rethinking a plan to sell it on the market.
Central banks worldwide are building up their gold reserves as the metal trades near record highs. Gokhran, the Russian repository, cancelled plans to sell the gold on the open market after information about the sale leaked.
"The primary aim is to make sure this gold doesn't hit the market and influence prices," said Olga Okuneva, metals and mining analyst at Deutsche Bank in Moscow. "It's also a way for the Russian central bank to diversify more into gold."
Russia had planned to sell between 20 and 50 tonnes on the open market to help plug a budget deficit incurred during its first recession in a decade. The economy has since shown some signs of early recovery, in line with a rebound in oil prices.
With gold trading at record highs of $1,226.10 per ounce last week, boosted by a weaker dollar, analysts said Russia would be reluctant to sell the metal abroad or to push prices down by releasing a large quantity to the market.
Thirty tonnes, or 964,522 ounces, is equivalent to 16 percent of Russia's gold production last year or up to 1.25 percent of global consumption of the metal.
The source at Gokhran, speaking on condition of anonymity, said Russian President Dmitry Medvedev signed a decree on Dec. 7 approving the sale. "Next week, I think, we will conclude everything," the source told Reuters. Finance Minister Alexei Kudrin first announced the sale on Nov. 18, saying Gokhran -- which falls under his ministry's watch -- would sell at market price and use some of the proceeds to buy diamonds from state-run miner Alrosa.
Kudrin, speaking to Reuters on Friday, said the sale would take place by the end of the year. He gave no more details.
Russia holds the world's third-largest gold and foreign exchange reserves -- $451.2 billion as of Dec. 4. It is also the world's fifth-largest gold miner, ranking between Australia and Peru, with an 8 percent share of global production.
The central bank held 19.5 million ounces of gold, or more than $20 billion worth, in its reserves as of Nov.
SANTA CLAUS is still coming to town, hope you enjoy your gifts
bye bye, would be your loss