Is The World Turning GOLD?

As we speak the POG is 908.40 which is up from an overnight low of $896.40.  I think anytime we get around the 900 level buyers will step in and grab Gold as they bargain hunt for the next leg higher. The Dollar DXY is at $85.56 down o.60%. We all know that the Dollar weakening is bullish for Gold. Safe haven hunting has been directed towards Gold. “The long-term investment demand through the gold ETFs is extraordinarily high and likely to rise still further,” said Julian Phillips, editor at GoldForecaster.com. We all know Gold companies such as Newmont Mining Corp (NEM) and Kinross Gold Corp (KGC) have taken the opportunity to issue stock to bolster their own balance sheets. The rumors are still floating around about those players looking at companies such as Yamana Gold (AUY) and Coeur d’Alene Mines Corporation (CDE). Recently Barrick Gold Corp (ABX) Chairman Peter Munk said last week “he has been inundated with calls from wealthy investors seeking to buy gold to protect their capital.” (Bloomberg)

Gold has been one of the best-performing assets of late, rising in value by nearly 17 percent since late October. My personal feeling is that with the stimulus packages calling for TRILLIONS, not Billions the value of the USD has to go down. History has showed this to be almost 100% true.

Anybody else think the manipulation to keep a lid on Gold so the big boys can load up is almost complete?

(Marketwatch) Some hedge fund managers and investors are so concerned about a possible devaluation of major Western currencies and the threat of inflation that they’re taking some unusual steps to hedge those risks. Some well-known managers, such as David Einhorn and Seth Klarman, have shifted investment strategies to protect against inflation.
Other hedge-fund firms are going one step further by offering new classes of shares denominated in gold and even oil.

Folks, Gold is not just a commodity, it is now an important alternative currency. The euro is going down, and rather than flee to the safety and security of US treasuries which we are devaluing in front of the world’s eyes, people are turning to Gold. The POG went up 6% last year. In fact it has gone up for the last 7 years. I can’t say the same for many stocks or other commodities. If you don’t think there is a ton of support out there, think again.

I also want to give a shout out to all my SLW Wheaties. SLW….spin off of the silver holdings of GG after it merged with Wheaton River Mineral. With silver threatening to explode in lock step with Gold, this one you all should really look at if you’re into silver. SLW is on the verge of becoming a premier silver name and one worth owning. Start accumulating for the impending explosion boys & girls!

Gold $2000 per ounce???

Eric Sprott, the Canadian money manager who last year predicted banking stocks would collapse, said the U.S. is at the beginning of an economic depression that will help gold prices more than double.

Bullion may top $2,000 an ounce in coming years amid a series of financial catastrophes, the chairman and founder of Toronto-based Sprott Asset Management Inc. said yesterday in an interview. Banks will battle to replenish capital, Treasury auctions stand the risk of failing and the moribund economy will create a dire operating outlook for many companies, he said.

“The trend is down, and there’s not one signpost that says it’s changing yet,” Sprott said yesterday from Toronto. “We’ll stand by to wait to see those, and until it does, you have to assume it gets worse.”

Sprott believes there is a chance that a U.S. Treasury auction will fail as countries use their resources to quell financial turmoil in their home markets, leaving less to help finance the world’s largest economy. That outcome will have a “catastrophic” impact, he said.

“When do people stop buying the credit of the country? That’s a tough question to answer, but it’s on a lot of people’s lips right now,” he said. “Each country has their own financial problem, so there’s no funding for anything external.”

Greenlight Capital Inc., a $5.1 billion New York-based hedge fund, has started investing in gold for the first time, while Federated Investors Inc.’s $1.3 billion Federated Market Opportunity Fund, which outperformed 99 percent of rivals last year, now counts Yamana Gold Inc. and Goldcorp Inc. among its largest investments.

Gold companies such as Newmont Mining Corp. and Kinross Gold Corp. have taken the opportunity to issue stock to bolster their own balance sheets.

“The window to raise money for gold stocks has blown open,” Sprott said. “The investing public has started to go to that one thing that they think it’s safe to invest in.”

Read the article here

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