Sorry for the late post today, as I am writing gold closed today at $949.20 up another $4.70 oz. We are now at Gold’s big test, if it can successfully clear and close over $950 -$960 oz. then ther is nothing stopping it to go for a new test of the all time highs. Today’s action was a feint like a boxer about to deliver the knockout punch! However a word of caution if Gold fails after 2-3 attempts at clearing the $950 level then a retracement back to the $875-$890 level will occur. It will consolidate and then come back up to retest the $950 level. Personally however, in my opinion I think this is it the 2nd successful close over $940, I think we are getting ready to see Gold go back and test all time highs. If you hurry you can still get aboard! – Good Investing! – jschulmansr
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Stocks Are Doomed, Only Cash or Precious Metals May Survive – Seeking Alpha
By: Doctor O of Sell The Rally
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Will Gold Hit $1,000 – Seeking Alpha
In the three months ending January 31, SLV led its benchmark index by nearly 25%, trumping PowerShares’ DB Silver offering, DBS, by a narrow 1.25%. If analyst predictions play out, the demand for silver could continue to grow in upcoming weeks, even as a dismal holiday season for jewelry persists well into the new year. In a recent report, UBS upped forecasts for both silver and gold, citing expectations of speculation and investor interest, as uncertainty still reigns in U.S. markets.
Supporting the hypothesis that the flight to precious metals still results from investor uncertainty is UBS strategist John Reade, who noted that “purchases of physical gold have jumped over the past six months as investors’ fears about the current financial crisis and the possible outcomes from government efforts to support banks and economies have intensified.” UBS also estimates that investor interest in precious metals such as gold will double in 2009, compared with 2007. If this prediction plays out, gold could reach an average of $1,000 before interest wanes.
Shares of SLV track the spot prices of silver and are backed by physical silver reserves. On February 3, New York–based SLV announced that the bullion holdings for the fund rose 77 tons, approximately 1%. This increase puts the fund at a record 7,530.2 tons of bullion, up 11% since January 2. While other factors come into play during the intraday trading of SLV shares, increasing stocks of bullion underscore the growing interest that SLV is seeing in 2009.
Futures, currency and commodity prices are extremely volatile and unpredictable, so understanding the reasons behind silver’s recent spike is an important step in avoiding the swell and vacuum of SLV’s swings. As currency concerns continue to plague investors worldwide, an increasing number of people have turned to silver as a “why-not” alternative to investing in unpredictable notes. India, whose citizens seize silver as a tangible alternative to currency, imports an average of 3,000 tons of silver per year. The Economic Times recently reported that banks may not be able to import regular amounts of silver in the future, a factor that could drive silver prices there drastically higher in black market arenas.
So what makes SLV stand apart from the ever-expanding sea of commodity ETF choices? Its track record, size, and liquidity are all comforting factors for investors looking to jump into the silver fray. With 245 million shares outstanding and an average of 6 million shares traded per day over the last three months, SLV simply dwarfs peers such as DBS. Launched in January 2007, DBS has a three-month average daily trading volume of nearly 200,000—a factor that makes SLV a more liquid choice in white-knuckle times.
Investors should also be wary because while SLV tracks the spot price of silver, other important factors come into play during the intraday trading of the ETF. In addition to reflecting the price of physical silver, SLV also takes into account counterparty risk and the ever-changing emotions of investors in the open marketplace. While the silver is likely “there,” the ratings on even the most venerable of banks—like SLV keeper Barclays—could come into question in perilous economic conditions. Success in the fund is also contingent on the increasing price of silver. Placing funds in SLV is not the same as under the mattress—management fees and “iShares Silver Trust expenses” are exacted by the issuer on a regular basis, slowly eroding the value of one’s investment over time, if the price of silver does not continue to rise.
The longer the economic stimulus plan is stripped and scrubbed across the floor of the Senate, the more investors could continue to pile into a tangible investment like SLV until the storm passes. When the outcome becomes clearer, one-tune investments like SLV may become a more proportionate segment of portfolios and lose steam as the attention that has prompted their rise refocuses on other sectors.
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Will Gold Reach $5000 an Ounce? – Seeking Alpha
By: Mark O’Byrne of Gold and Silver Investments
Gold surged a further 3.3% yesterday to $942.45 (as did silver) as worries about the US and global financial system and economy continue to grow and governments print money on an unprecedented scale to combat the economic crisis. Asian and European stock markets are again under pressure this morning.
The strong close above $930/oz yesterday should see us once again challenge the record highs of $1,003/oz seen last March (March 17th) when Bear Stearns collapsed.
We have since had a long period (nearly 12 months) of correction and consolidation and thus a solid foundation has been built from which the next leg of the bull market will likely be launched. Our forecast at the beginning of the year for gold to rise as high as $1,250/oz looks increasingly conservative.
Gold Surges to New Records in Euros and Sterling as Crisis Deepens
Gold continues to surge to record highs in other major currencies (the London AM Fix this morning was at $944.00 USD, £666.33 GBP and €737.04 EUR. Worries about the health of the financial system and economy in the UK and EU are leading to weakness in the euro and sterling that has seen them fall in value versus gold. Gold has surged to €737/oz and over £666.33/oz (see charts below).
Gold to Reach $5000/oz According to Respected Goldcorp Founder
The respected founder of Goldcorp (GG), Rob McEwen told Bloomberg how he sees gold rising to as high as $5,000/oz in the next four years. Goldcorp is the second largest gold mining company in the world by market capitalization.
As governments increase the money supply to combat recession, bullion will more than double to $2,000 an ounce by the end of next year. “Politicians around the world are listening to cries from their electorates and they’re giving money to all callers,” McEwen said yesterday.
McEwen has more than $100 million in gold investments and said he also has a “big, big” holding in bullion. McEwen said he started buying bullion in August 2007, at the beginning of the subprime mortgage crisis. “I realized we had reached an inflection point regarding money,” McEwen said. “It was all about protecting money, and gold served that purpose.”
The recent trend of fiat currencies falling vis a vis gold looks set to continue for the foreseeable future. McEwen’s bold prediction looks outlandish now (as did predictions of gold at over $1,000/oz in 2001) but given the confluence of extremely strong fundamentals, gold will likely rise to levels in the coming years that seem unfathomable today.
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My Note:- I think a more realistic view would be Gold at $2500 to $3000 in next 2-3 years. However if everything goes to H*** in a Handbasket then yes $5000 and more! – Good Investing! – jschulmansr
Nothing in today’s post should be considered as an offer to buy or sell any securities or other investments; it is presented for informational purposes only. As a good investor, consult your Investment Advisor, Do Your Due Diligence, Read All Prospectus/s and related information carefully before you make any investments. – jschulmansr
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Silver The Other Precious Metal – Seeking Alpha
By Don Dion of Fidelity Independent Advisor
“We’ll wait for GLD to confirm that $88 will hold. Above $90, we should see more buyers coming in. March in-the-money calls are reasonably priced. AEM is another good vehicle to play gold. Although it is very volatile, it is a momentum stock and can run up fast!”
GLD successfully tested $88 and closed above $90 on Tuesday. On Wednesday, it jumped on high volume, more than twice the average volume!! GLD closed at $92.29, up +2.31%. AEM also did well, gaining +6.58%, or $3.48, finally breaking above $55.
click to enlarge
GLD
GLD added $2.08 to close at $92.29. It jumped on very high volume Wednesday. It closed just below the resistance at $92.5. This is only a soft resistance. The nearest hard resistance is between $95-$97.5.
Compared to the stock market, which had been treading water in a tight range since November last year, GLD had done much better. We can see a big divergence in this comparson chart:
The SPX has basically traded flat. On the other hand, GLD has risen nearly +30%, from $72 to $92!
GLD’s chart is still very strong. Its daily MAs are curving higher and still holding a bullish formation. The MACD is also turning up. I think GLD can easily revisit $100 within the next few months, which means gold can retest $1,000, and likely go above. Again, March “within-the-money” calls are reasonably priced. If GLD goes to $100 within the next few weeks, these options will probably double.
Good day and HappyTrading! ™.
Disclosure: no positions
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My Note: Yes! Gold will hit $1000 in fact will go and test the $1050 level. I n the case above the writer Mr Wang did an excellent forcast but notice no positions! I hope he follows his own advice and jumps on either (GLD) or if you want more bang for the buck (DGP). My disclosure I am Long (DGP), and (GLD). Also Long Bullion, Large, mid-tier and junior mining shares in the whole Precious metals spectrum including Rare Earths and Strategic Metals. Also Don’t forget silver as the next article points out. Finally do not forget Platinum and Palladium their time is coming too, mark my words! – jschulmansr
Home foreclosures are accelerating. We await a tidal wave of personal and corporate bankruptcies and the implosion of the commercial real estate market that will trigger more massive losses in the banking system.
In short, I have no confidence in the U.S. Government to “solve” the current depression. In fact, they will no doubt make it worse by socializing the economy and spending money obscenely. No wonder the only thing that’s working is precious metals.
I cannot consider investing in any stock until this virulently anti-business administration is either voted out of office or starts to see things more rationally.
The Last Depression, Coming to a Town Near You
Keep Away from U.S. Stocks as They Cascade Down
Gold Threatening to Break Out To New Highs Against the U.S. Dollar
Dare Something Worthy Today Too! 
I like prima-gold verymuch because it’s very beauty
http://www.prima-gold.fusionthai.net
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