Replies to post #21051 on Petaquilla Minerals Ltd. (fka PTQMF)

[Implanting]

IMO it could be any number of different reasons. It all depends on what article you're reading or who's looking for the POG to go higher or lower. I've read articles on anything from a Dead Cat bounce off the low to J.P.Morgan manipulating the price higher now that they've gone net long the PM's. I couldn't tell you how many articles I've read on the PM correction being the weak paper hands giving up the ghost to the strong physical holders. That makes sense, but still unfounded IMO.

I was just reading today where Goldman is still saying the gold price is heading back down to the $1000 area before year end, so it's who you want to believe I guess. The gold bulls want to believe the correction is over and we're heading back to new highs.

I'm of the opinion the POG could go either way. I'll be a little more convinced of a move higher if the price can get back above the 200 day moving average, which is around $1560 or so. There may not be a lot of convinced buyers getting back in until that happens.

What's been encouraging to me is that at least the mining stocks seem to be reacting positively to this recent price action in gold.

[Implanting]

JFF, you may want to check out a recent article posted over on the King World News blog. The posting is titled "Gold to surge $180 & silver set for massive 35% advance."

Again, this article is speculation from an analyst who you'll notice from his charts etc. compares the current correction we've seen in the PM's to the correction seen back in 1975-76 time frame. He makes the points on the similarity of the length and depth of both corrections. He also gives some price targets for gold and silver to make for the advance to continue.

If what he says comes to pass then the correction in the PM's could be over and better days should be ahead, but it still has to happen.

After the correction in the PM's in that 1975-76 timeline came there was a huge move higher in gold and silver, as you can see from the chart. Gold went from $100/oz. to over $800/oz.