Thursday, November 30, 2006

A look at SLV and SILVER Then and Now

When we last looked at these two charts one or the other had to be wrong. Which way did you guess?

Wednesday, November 29, 2006

Can You Say Flip-Flop ?

Editor: Isn't this the same guy that just told us gold is going down because the economy is cooling? This is some great reporting isn't it?

Gold, Little Changed, May Gain as Investors Bet Against Dollar
By Pham-Duy Nguyen
Nov. 29 (Bloomberg) -- Gold, little changed in New York, may gain after a report showed sales of new homes in the U.S. fell in October, reducing chances the Federal Reserve will raise rates anytime soon.
Higher interest rates make holding gold less attractive. The Fed has held rates at 5.25 percent since June, helping to send the dollar 9.4 percent lower against the euro this year. Gold is still up 24 percent. (read the rest of the story here....)
Is volatility about to rise?

Me thinks so....
Another Caledonia Mining Chart...

Bullish falling wedge?

Tuesday, November 28, 2006

Editor: What a bunch of crap. I think the wealthy people will be shifting more of their assets into gold and silver to protect their wealth. How about the massive investment demand from ETF's and private investors. For example, GLD has amassed more than 400 tons of gold since its inception. Why is it that Bloomberg seems to see things backwards most of the time?

Gold Drops on Speculation Slowing U.S. Economy May Cut Demand
By Pham-Duy Nguyen
Nov. 28 (Bloomberg) -- Gold prices in New York dropped from an 11-week high on speculation a slowing U.S. economy will reduce demand for the precious metal.
Jewelry demand accounted for 73 percent of purchases last year, according to the producer-funded World Gold Council. Orders for U.S.-made durable goods declined last month by the most since July 2000, a signal that companies are curbing spending.
``The durables are going to put a clamp on gold and other metals,'' said Ron Goodis, retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Wealthy people who spend a lot of money on jewelry are going to pull back.'' (read the rest of the story here)

Monday, November 27, 2006

Thursday, November 23, 2006

Wednesday, November 22, 2006

A look at Caledonia Mining Corp.

CALVF.OB looks like it may be setting up for a breakout. It seems to have fairly strong support around $0.10 and has been known to rise rapidly once it breaks out.

I'm looking for a break out above the downtrend line on heavy volume. (Disclaimer: I own shares of CALVF)

Tuesday, November 21, 2006

Feeling Bullish On The Stock Market?

So the stock market continues to head higher. Take a look at this great chart of the VIX. Get ready for some volatility!

Wednesday, November 15, 2006

Optimism Rules

Alot of people I talk to lately are highly optimistic about the state of the U.S. Economy. This does not make them an optimist or me a pessimist. I am highly optimistic about the oportunities presenting themselves in precious metals, base metals and the global economy.

With all of the U.S. Economic optimism, it makes me wonder about the following headline from Reuters:

"NEW YORK, Nov 15 (Reuters) - The yield spread between 10-year and two-year Treasury notes briefly widened to 20 basis points on Wednesday, marking the deepest inversion since December 2000. (Read entire article here)
Two Different Views

When you compare these point and figure charts of SLV(the silver ETF) and Silver you can see that they clearly don't agree.

So, is silver ready to break out or break down? You be the judge.

Wednesday, November 8, 2006

What time is it?

Well, since today is November 15th, 2006, that means it might be time to load up on gold, silver and precious metals shares.

After consolidating for quite a while and then breaking out of a downward wedge, it seems that gold and silver may be setting up for a run quite a bit higher.

It also might be time to look at the pitiful condition of the U.S. Dollar fundamentals and make sure you are prepared for what is heading our way over the next several years.