A weaker dollar and a battle between bull and bear traders could see the yellow metal break its previous record and head toward $1100 Author: David Levenstein Posted: Monday , 14 Sep 2009
JOHANNESBURG -
Finally, as the dollar fell to its lowest level in almost a year on Tuesday the gold price broke through the $1000 level. While the price of crude hovered around the $70 level, the euro rallied against the greenback for the sixth day to reach a fresh yearly high of 1.4630. The British pound advanced against the U.S. dollar for the fourth day to reach a fresh weekly high of 1.6744, and the improved outlook for inflation may drive the GBP/USD higher. The dollar also tumbled against the Japanese yen for the fourth consecutive day to trade below 91.00. The dollar index, which tracks its progress against a basket of six major currencies, fell to a low of 77.398, breaking through the lows it hit in early August to fall to its weakest level since September 30 2008.
With the Federal Reserve likely to continue to "print money" in an effort to boost the U.S. economy, and with the US debt now approaching an unprecedented $7 trillion it is likely to see further weakness in the greenback, and a higher gold price as a consequence.
In a recent report by Bloomberg, Marc Farber, the publisher of the Gloom, Boom & Doom report, who recommended buying U.S. stocks in October, before the biggest rally in more than 70 years, said investors should buy equities instead of bonds or holding cash.
"If the dollar is weak, there is a very good chance that equity prices could rise quite substantially," Faber said. A weaker dollar is "good for asset prices."
Faber also recommends that investors buy precious metals and other raw materials to hedge against declines in the U.S. currency. Before today, the greenback slid 4.9% against a basket of six major currencies this year and the 19-commodity Reuters/Jefferies CRB Index climbed 10%.
"The dollar will continue to implode against commodities," Faber said. "I don't see why someone would hold dollars and not own gold. More and more people will come to the realization that they have to own some resources, some commodities, some mining companies and some physical precious metals."
While the price of the yellow metal has been reacting to the weaker dollar, there seems to be a battle going on between the bulls and bears trading gold futures. Evidently, there is a determined effort from the commercials to drive the price of gold down as they continue to short the market, and the major bullion banks are now net short a massive position. This play between the bulls and bears will either prompt more short-selling or a liquidation of the current short positions. Liquidation of shorts means more buying and this could propel the price of gold higher in the short-term. No matter what, I believe we are soon going to see a re-test of $1035. ----
ex..a penny playin gold mining :-) Roxmark Mines Ltd (TSX:RMK)fiat(CAD) $0.26 UP $0.015 (+6.12% :-) Bid 0.255 Ask 0.26 Volume 704,898 Strong Demand :-) Day's Range 0.245 - 0.265 Last Trade 3:25:12 PM EDT Click for Detailed Quote Page
Roxmark Gold Mines - analyst report & more - by Silverwhere2 9/16/2009 12:38:02 PM |
So what happened here?
Someone had to promote that incredible News Release & get paid to do it. What's the long term result? Well, it brought out the curious Roxy virgins Plus it triggered additional buying which came in from the long term holders. So what? It's all good. Different strokes. Different species.
Now for the real investors out there:
The trouble with kids these days is they don't read enough.
Also, get on the internet & do some homework. Coffintrader is too busy making money to read beyond the headlines. READ BEYOND THE HEADLINES, then invest your paper route profits in something real: RMK.
Let's see -
Roxy will have about 500,000 ozs of the 1,500,000 ozs at the Hardrock site
Roxy has about $100,000,000 in infrastructure and
"Roxmark plans to reopen the Northern Empire and Leitch/Sand River gold mines (the latter once Canada's richest and now 100% owned by RMK) to feed its fully permitted, upgraded mill. In addition, the Company will continue to delineate gold resources at other Company-ownedproperties, both unilaterally andthrough joint ventures like The Hardrock Project where Premier Gold is enjoying great success as operator. 2009 priorities include drilling the rich new structures just identified at the Northern Empire Mine".
If any Roxy virgins need a 5 buck calculator inbox me, lol.
btw (a couple of years back now) thanks dredge! --
-- 1141.54g/t gold (33.33 ounces per ton) across 2.0m - Roxmark reports bonanza-grade gold zone -
ex.... Roxmark plans to reopen the Northern Empire and Leitch/Sand River Gold Mines (the latter once Canada's richest and now 100% owned by RMK to feed its fully permitted, upgraded mill
In addition, the Company will continue to delineate gold resources at other Company-owned properties, both unilaterally and through joint ventures like The Hardrock Project where Premier Gold is enjoying great success as operator 2009 priorities include drilling the rich new structures just identified at the Northern Empire Mine
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