Not Just Inflation Fears Boosting Gold

Source: MarketWatch, Peter Brimelow (11/8/10)

"Buyers are in control of gold; it is that simple."

Gold goes onwards and upwards. And key letters say there are reasons beyond looming inflation.

The metal's friends must be wondering if it gets any better. The CME December gold contract rose $50.10 (2.95%) last week to close at a record high of $1,397.70. Silver, which many old precious-metals hands consider to be a purer reflection of U.S. speculative sentiment, was up even more.

What's more, gold expressed in euros managed to get above the early September high. Gold expressed in U.S. dollars had risen substantially since then, and gold bears were pointing at the lack of progress in gold in other major currencies as evidence that the move was vulnerable. That argument has now failed.

Even the long-sluggish gold shares behaved. The ARCA Gold Bugs (HUI) managed (at last!) to get above the 2008 high, achieved when gold was first briefly over $1,000; it managed a 5.3% appreciation for the week. It closed at an all-time high.

Dow Theory Letters' Richard Russell points out that the gold major-share Market Vectors Gold Miners ETF is now being outpaced by the junior-share vehicle Market Vectors Junior Gold Miners ETF.

Russell says this "indicates speculative interest is rising."

Still, sentiment indicators don't rule out gold going further. The HGNSI Index did rise during the week to 55.3%, and MarketVane's Bullish Consensus for gold added is at 79%. The LeMetropoleCafe website reports that the MV Bullish Consensus "spent 12 days in the 80s in October, peaking at 85% on Oct. 14." So current levels are not necessarily vulnerable.

Plus, it's not as if gold hasn't tried to correct. It plunged over $30 on Wednesday, before recovering, and there was another frustrated breakdown on Friday.

As JSMineset's Trader Dan remarked after Friday's close: "Buyers are in control of gold; it is that simple."

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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