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Monthly Digger - April 2010


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they sure are cute - agent

 

its so quiet around here, gold breaking out and no enthusiasm

gotta love it!

virginia mines on a roll this am, contemplating selling some to these antsy buyers,

cant find any news!

i like the concept of project generators

dharma

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where is everbody? my stocks and gold been going up but no one seems to care? just dharma and a few others. gm went missing but finaly made a post this morning. thought he , here today and gone to maui as somebody posted over there.

 

April 6th 2010

11:42:55 AM

 

GM

 

Hello everyone,

 

Sorry I've been out of the loop as I've been traveling / vacation with my wife. In response to the several posts here, you're all welcome as it has been my pleasure to assist with commentary and charts.

 

Some have been wondering what's going on with Gold / Euro / US Dollar / and why Gold is up with the Dollar being this strong? And / or is the Dollar index EVER going down?

 

Uh . . . who cares? (about the Dollar index).

What matters is that Gold is ignoring the weakness in the Euro (which is what is propelling the Dollar index up again) and rallying anyway. That is the point. The only reason to care about the Dollar index or the Euro for that matter is when the Gold market does. And right now, it doesn’t.

 

Generally, this sort of divergence is the market’s way of telling you that the rally in the US Dollar index is going to fall apart soon, but it honestly doesn’t matter.

 

In reality, the Euro’s direction shouldn’t matter at all to Gold given the global environment of easy money. The Euro’s woes are the same as the woes of the US (i.e. – too much debt and too much money printing), and that’s also why Gold is rallying in Euros as well as Dollars. Speaking of which, note Gold in Euros is also making a new all-time high today.

 

Meanwhile, the US Dollar continues to implode against the CAD, which is hitting another new 52-week high today. The Dollar is also continuing to tank against the AUD after the RBA raised rates by 25 bps last night, which is another example of why the US Dollar will continue to weaken in general over time (i.e. – foreign economies are stronger, which will and is allowing for Foreign Central Banks to tighten sooner than the Fed). That won't stop Gold in these foreign currencies either though, because these FCBs are also terribly worried that their currencies will be too strong, which is why they are tightening less and more slowly than they should if they want to stop inflation from breaking out.

 

Besides, at the end of the day, all these other pieces of paper derive their "value" from the US Dollar given that it has been the hub of the monetary system since 1980. As I've pointed out before, that system is now broken, which leaves the value of all paper money in doubt. The process above is just the mechanics.

 

The bigger picture is that Gold will continue to be the only real currency refuge during the transition period between the fiat dollar-based monetary system of 1980-2007 and whatever system we get next, not unlike the transition from the Bretton Woods system to the fiat Dollar-based system that was the decade of the 1970s. That's the overall secular theme that all of these other minor themes are merely a piece of.

 

We've been on a "BUY ME NOW" since the chart was first posted here on Feb 1st (after the correct Jan 8th/Jan 12th Confirm "SELL NOW") and that has not changed. As wild emotional sentiment has continued to swing back and forth across the deck, BEARISH / BULLISH / BEARISH / BULLISH . . . (ad nauseum), we have been raking in the profits not just since Feb 1st 2010, but since Oct 24th 2008!!!

 

And now that these FOMC minutes are out . . . oh what a shocker! (FOMC cooed like doves again as usual and not worried about inflation in the least).

 

Yes, this is only "news" for the Market Consensus Ignoramuses, (the ones that are supposed to determine value at any given point in time . . hah hah hah!!!)

 

So stay the course and avoid the fickle, panic prone, emotional "Fundamentals Useless," Market Consensus Ignoramuses. (Life is too short).

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GBG is listing on the big boards giving it more exposure and just received some conventional financing to help fund a project. I own it but lightened up on it because it will take time to flower and bear fruit but it is cheap at this level. NGD produces I'm heavy into them. NG because I like to live dangerously as they producing nothing but drill holes with very promising cores.

 

Having a decent little run up in spot and most miners probably a pull back soon and it will be a good time to top off the tank. If things go as planned from my point of view it will be a buy and hold moment for months to come.

 

There are a bunch of penny stocks (anything under $5 is considered a penny stock) performing well but you guys seem to know how to pick'em. I'm not overweight in any long shot just pretty much even spread on a money basis because you never can be sure who will draw the most attention. Hopefully my picks all go up together.

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post-1024-12706153758674.jpg

This doesn't look right. Most activity should continue over the main quake event area. There is more activity northward now like the pressure has not been totally released but moved up against another area. Not even a 6.0 aftershock at ground zero has occurred after the 7.2. Well not much you can do about it except stock up on water and dried soup and whatnot just in case.

 

In the meantime, manipulators having a hard time keeping the lid on spot so beat up miners instead. Good time to buy.

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just sitting

2 pieces i came across today

 

richard russell

http://www.321gold.com/editorials/russell/russell040610.html

 

in this piece by bob hoye, his time targets coincide w/mine. his price targets are lower than mine. he has some interesting insights in this piece. lots of charts

http://www.321gold.com/editorials/russell/russell040610.html

 

wow! this is mind blowing king world news

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/4/7_Andrew_Maguire_%26_Adrian_Douglas.html

dharma

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Off topic. Slow days. Sometimes I browse land listings. Way out of my range and probably overpriced by several hundred thousand, but man, what a cabin and setting, near Red Lodge, Montana:

 

link

 

On topic. Another one I've been holding since January and like here is Teuton Resources, TEUTF (CA:TUO). I may have mentioned this a few months ago. They have huge holdings in BC's Golden Triangle and very prospective property, Treaty Creek, adjacent to Seabridge's KSM. Also, Seabridge has to tunnel through Teuton's property to get its ore to the mill and that has yet to be negotiated. Of course, Seabridge has no intention of building a mine and wants to be bought. But for it to be bought, I would think it would first lock in the tunnel access. Teuton is the minority owner of Treaty Creek at 49%, with American Creek Resources the 51% owner, possibly going to 60% if it is able to fund the property to feasibility. Teuton is not responsible for any of the funding through feasibility.

 

Teuton has that kind of jv arrangement on most of its properties, others of which are also highly prospective, like those adjacent to Imperial Metals' Red Chris. The stock has been trading for 20 years and there are only 35 million shares fully diluted. So, management is careful and has a long-term view and gets other companies to fund the drilling. Its sister company, Silver Grail, SVGAF (CA:SVG), is also attractive but has no interest in Treaty Creek. They share equal joint interests in most other properties, though, and SVGAF has even fewer shares outstanding, under 19 million fully diluted. At this point I only own Teuton.

 

post-2047-12707595124524.gif

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ok , i am talking to myself.

i should be out on a ledge somewhere

gold doing a very quiet creep

even the bugs are in their bunkers

he has some interesting charts in this piece.

http://www.321gold.com/editorials/thomson_s/thomson_s_040610.html

dharma

 

Dharma, As Goose said, you're not alone, .. :-]

 

I've also found this Stewart Thompson guy compelling, so much so that I've subscribed. He advocates a "pyramid" approach to building positions by buying weakness in increasing amounts as price drops and mirroring that approach to sell trading positions into strength. Sounds simple, but I've found it easier to be disciplined using his approach. Anyway, he's the only one of these guys that has ever made me any money, .. :-] Much like GM, he also seems to have a good handle on macro considerations.

 

Keep up the monologue, .. :-]

 

Cheers, J6P

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