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What is their problem? Is it management? Pascua deal seems to be a cost roadblock, but whose fault is that? I sold Aug GG 31's on it's last plunge, and am thinking about ABX, but it seems to break support time after time.
Auguries—Original Gangstas July 5, 2012 By Kevin Michael Grace
Gold was up (at press time) $52.20 (+3.4%) for the week to $1,604.30, and silver was up $1.38 (+5.2%) to $27.67. Reuters attributed the increase to “increasingly poor economic data rais[ing] expectations that leading central banks will ease policy further to stimulate growth.”
The Bank of England announced a further £50 billion in quantitative easing Thursday, but gold fell $17.50 in response, which was blamed on the European Central Bank having “cut the main refinancing rate to record low of 0.75%.” According to Goldcore, “Analysts from Standard Bank in London say that a rate cut implies a lower real interest rate, which ultimately is bullish for gold.”
Further bullishness is indicated by the extraordinary events in London, where shamed former Barclays chief Bob Diamond testified before Parliament, a performance so graceless he will, in the words of Matt Taibbi of Rolling Stone, “likely now replace Jamie Dimon (who replaced Lloyd Blankfein, who replaced Angelo Mozilo, etc) as the reigning hateable-white-guy Face of World Financial Corruption.”
Auguries — Seeing Red Kevin Michael Grace Seeing Red
Gold was up (at press time) $81.70 (+4.9%) for the week to $1,739.30, and silver was up $3.25 (+10.7%) to $30.48. According to GoldCore, “Gold rose in anticipation of the ECB embarking on another money-printing exercise with a potentially unlimited bond-buying program.”
Reuters reports, “Gold shot up 2% on Friday for the second time in two weeks, hitting six-month highs…. Spot gold bolted up by $30 an ounce just after the US Labor Department reported that nonfarm payrolls rose 96,000 last month, well short of expectations for a 125,000 rise…. ‘Gold is going through the roof because this negative data makes QE3 more likely now,’ said Daniel Briesemann, commodities analyst at Commerzbank in Frankfurt.”
My gold work: Long on SGGDX (401K), GLD (IRA) and ABX . ABX at about 4 year lows; GLD at mid 2011 levels; SGGDX at mid 2009 levels. I have continued to strengthened positions in all 3. ABX is the short term investment. A target of 56 in the next 18 months is not unreasonable. Even if there is no technical evidence of a turn around soon, I am prepared to add, in wide spans on the way down ie $2. ABX is no loser. It is "best of breed", like GG, in a dipping sub-sector. I looked at physical gold but could not figure out a good way to buy, store or sell safely and cost effectively. I simply do not know how the game works. So, I pay the ETF guy (GLD) for long term protection from market dips during retirement; take the risk with ABX and hold SGGDX (5 star rated fund) with its 15-17% physical gold exposure and diversified exposure to miners, etc. All in all, gold stuff is about 15% of my portfolio .. not really comfortable with more than that.
Chile court suspends Barrick Gold mine [ story ] (CBC News). Double wammy today. Chile problems and gold sector drop. -8.36% ... buying opportunity but not a pleasant one for me. I need to learn more about Chilean politics. I had a tough time breaking even with BMA and YPF (both Argentina) because of political things. Thought Argentina was the risk. Didn't see Chile bringing out the hammer.
Financial Sense News Hour Gold - Southern X posted this on the ORT topic: Jim Puplava’s Big Picture: An In-Depth Conversation on Gold with John Kaiser This is the most informative audio I have ever heard explaining gold price, miners situation, short selling on juniors (like ORT) , and direct references to ABX. Offers some hope for September turn around. With Goldman Sachs gold setting target in the 1400's this may be painful. I have to remind myself this is an investment and I am looking 18 month out. BTW the audio even mentions "environmental rain of terror" . Concerning ABX, I hope that isn't what is happening in Chile.