Gold target $1,224

Go Jim Sinclair … his personal gold target is $1,224

The TOP 10 REASONS to Hold Gold, Bar None!

The Motley Fools did a really good job of this … The TOP 10 REASONS to Hold Gold, Bar None!

Why You Shouldn’t Expect $1,000 Gold Anytime Soon

Here’s a great article putting forward reasoning why, in a deflationary environment, Gold won’t cut the mustard; so the question is, assuming that it is indeed a deflationary environment, whether inflationary or preferrably for gold bugs ‘hyperinflationary’ environment will follow.

Why you shouldn’t expect $1000 gold anytime soon

The best part about that scenario is deflating prices provide accumulation opportunities as people sell for profits; buying into a bottom followed by inflation driven prices increase thereafter.

Maybe we have a theme worth developing here.

BAA

Linking the golden dots, big seller need big buyer

So the IMF decides to sell 403 tonnes and the World Gold Council is OK with that apparently, because it won’t affect the gold market. Well heck, how could a huge sales like that NOT affect the gold market? Lets try and link some golden dots.

The way to make a huge sales of gold and not affect the market (price) per se is to sell to a single counterparty, hmmm. Who’s buying Gold and more importantly who’s buying a lot of Gold. Ah ha, you got it … China.

Choppy times ahead for Gold?

Choppy times ahead for gold in near term – BMO’s Melek
While gold may be vulnerable to a near-term pullback, BMO’s Bart Melek believes there are long-term motivations to hold the precious metal.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=85418&sn=Detail

How much Gold in your portfolio?

How much gold should be in your portfolio
Financial advisers often suggest maintaining at least some part of one’s investment portfolio in gold as a diversifier, stabilizer and inflation hedge -but how much makes sense?

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84224&sn=Detail

Right time for Gold Mining Stocks?

Why the time could be right for gold mining stocks
There is a correlation between U.S. deficit spending and gold outperforming the S&P 500. This coupled with the Chinese appetite for gold should keep gold and gold stocks attractive to the broader market.

http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=84558&sn=Detail

IMF Gold Sales

ORDERLY SALE ANTICIPATED
IMF gold sales clearance welcomed by World Gold Council
The U.S. Congress’ passage of a bill which would effectively allow the IMF to sell 403.3 tonnes of gold has been welcomed by the World Gold Council which feels the sale will have no impact on the global gold market
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=85262&sn=Detail

… yeah right!

$1 Dollar Bank Note

dollarmo2

Originally uploaded by Baa_Baa

$1 Federal Reserve Bank Note … “In God we Trust”

$5 Silvercertificate

683px-Silvercertificate_1

Originally uploaded by Baa_Baa

Five Dollar Silver ‘Certificate’ … redeemable in Silver Coins “payable to the bearer on demand”

$10 US banknote payable in Gold

$10 US banknote payable in Gold

Originally uploaded by Baa_Baa

Carefully read the words on the banknote; from the times when paper money was issued as an IOU redeemable in precious metal.

The Money Masters

This is compulsory viewing for a Goldbug. The whole series is linked in my Videos section of this Blog https://baabaapreciousmetals.wordpress.com/videos/

Here’s the first of the series; watch them all. Honest, you will benefit from this knowledge.

Golden Accessories

Every metal junkie should have these!

http://craziestgadgets.com/2009/04/06/gold-bar-mouse/

http://www.tokyozakka.com/usb/gold-ingot-usb-hub.html

Enjoy!
BAA

NZ Price of Silver

NZPOS is pretty ugly like NZPOG, being hammered by the rapidly rising and persistently high NZD negating much of teh rises and USPOS and accentuating the falls. Currently NZPOS prices are working their way down in a narrow channel, but beneath its 50MA and what was hoped by some to be a strong rising support trendline, but wasn’t!

Bullish? While there’s little to be bullish about except maybe the oversold %R and weak RSI, you’ll be wanting NZD Silver to somehow bust back up through all that resistance which only sis days ago was supposed to be support, then above that is the solid declising trendline resistance from the Feb’09 high. Silver bulls are fearless and they resolutely believe, heck they know this will happen 😉

Bearish? Well it’s easy to be negative on NZPOS right now with nothing below here except the 200MA and horizontal support at $21, which when broken would open up a collpase to $20 and decline to $18 after that. Accumulators will be wading in already but any sign of prices below $20 and it’ll be “back up the truck and load her up” 🙂

USPOS

A quick update of the chart and we can clearly see Silver is midstream in a massive parallel rising channel and has bounced rather fortuitously on horizontal support at $14. Still hovering above its 50MA, and with decent support below, the Silver chart has some cause for confidence in price strength, but those pesky indicators offer no suggestion of direction from here.

Bullish? You’ll be looking for Silver t owork itself out to the declining resistance trendline and break out up, at $14.5

Bearish? You’ll be wanting a slump through the 50MA and horizontal support, and to continue down teh declining pennant formation to test the major support trendline currenrly at $13

NZ Price of Gold

So how does it translate into NZ price of Gold? Well, not that good actually. The persistent strength in the USD has pushed NZD up from the .40’s to the .60’s, a ~20% change which has sucked teh life out of any Gold price rallies and compunded Gold price declines. NZPOG currently is in an ugly declining wedge and looks set to test the horizontal support around $1413. The current ST channel shows NZPOG fell through it’s 200MA and tried to get back, but sagged. Again like USPOG, the indicators aren’t very helpful with NZPOG’s %R holding in oversold and RSI weak and staying there. The good news is that Gold can be bought with NZD’s at over $500 cheaper than in February. How quickly we forget that the NZPOG low was $575 not so long ago.

Gold

The US Price of Gold (USPOG) looks a little more promising when you step back from it a bit, as the chart illustrates the underlying supprot trendline from Jan’09 which crosses right on that 61.8% fib at $912. It would be a concern for the bulls to see Gold fall beneath there, but you can also see the solid shelf of support at $865 and again at $800. While %R is holding in over sold, RSI is meekly tracking sideways in neutral ground. There is no real indication of direction evident in these. A plan either way is always the best approach and now is a good example of why. While the promise of an uber breakout of the huge Head & Shoulders formation going back to Mar’08 is exciting for bulls, the promise of a wave (C) down to the $600’s is exciting for accumulators.

USPOG Weekly Summary

Concluding a somewhat tedious week, USPOG responded to Monday’s collapse down to the 50% fib retrace and low volatility in the USD, with a 4 day dose of sideways price movement. Was it all boring? Maybe not.

Looking at the zoomed-in chart segment below, we can clearly see current prices are still set within a well formed short term down trending channel, however this past week of sideways prices actually ground out a slight parallel rising channel as the price worked it’s way into the larger resistance trendline.

Bullish? You will be looking for Gold to break out of this immediate resistance, setting up for a retest of the $955-$965 region where the price tends to either bolt up, or collapse down from.

Bearish? A turn back from the immediate resistance trendline would bring the confluence of support at $927, the 50MA and 50% fib into play, though $912 at the 61.8% fib is the logical support beneath that.

NZPOS

NZPOS seems determiend to seek out the floor of support at $21 (also the 200MA) and there by negating the entire price move since the Feb’09 breakout upwards. Caught in a steep declining ST trend channel, which is within a broad descending wedge, NZPOS can draw some comfort that this is a continuation pattern. Indicators are languishing. This setup informs accumulators that relatively good physical metal buying can be had here and below.

3 Wise Men?

Intrigued by the war of the economists? … is it inflation or deflation?

http://www.mineweb.com/mineweb/view/…5015&sn=Detail

One is good for gold, the other isn’t. However that’s taking a price approach to determine what is good or not; whereas looking at gold relative to all other asset classes, even in a deflationary environment it will still retain value and purchasing power along with fiscal insurance characteristics. That’s why a modest holding has been favoured as the baseline for an asset portfolio … for centuries. There is nothing in these modern times that has changed that ancient wisdom.