Jump to content

Monthly Digger - October 2009


Recommended Posts

  • Replies 321
  • Created
  • Last Reply

HGU.TO

 

Very Bullish pattern setup.

 

ABC with C a falling wedge, Stochastics still double-dipping, and a confirmed doji reversal.

 

MACD's fast line flirting with zero.

 

A break out of the wedge signals a return of 17% if the pattern plays out.

post-1352-1254793474_thumb.png

Link to comment
Share on other sites

While The Deep Forest Bear Shorts Continue to Slumber in Confusion and Ignorance . . .

 

We’ve obviously discussed the likelihood that the world’s oil producers would stop pricing oil in Dollars at some point due to the breakdown of the world’s fiat dollar-based monetary system. The following story is extremely Bullish for Gold and if it pans out, then the most crowded trade on the planet (i.e. – holding “Cash is King” Dollars) could Blow Up in epic fashion. I've heard from several of my sources that the target composition of this proposed SDR basket will be weighted 50% Gold, in a return to a system more in keeping with the original Bretton Woods agreement. Watch the sky!

 

The demise of the dollar

 

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

 

By Robert Fisk

 

Tuesday, 6 October 2009

 

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

 

http://www.independent.co.uk/news/business...ar-1798175.html

Link to comment
Share on other sites

Ivanhoe Mines, Rio Tinto and Entree Gold are all on the cusp of signing a historic Investment Agreement in Mongolia @ 3pm on October 6th 2009. It's been a long painful process (6+ years) but the Oyu Togolgi and Hueruga Deposits are too world class not to develop.

My largest holding is Entree Gold (EGI / ETG.TO).

http://www.entreegold.com/

Yes, Its Mongolia but this is now going to happen and on favorable terms.

Entree has $46 million in cash, 95,012,818 shares outstanding and Ivanhoe and Rio Tinto own 30% of the company.

Entree is 20% owner of the Oyu Tolgoi North Deposit (aka Hugo North Extension), 20% owner of the Hueruga Deposit and free carried to production by their partners.

In addition, Entree owns 100% of the land that surrounds Oyu Tolgoi and Hueruga. They also have some coal properties and some other exploration properties in China and the US.

If you haven't ever taken a look, its worth 10 minutes to go through their most recent presentation on their website.

http://www.entreegold.com/_resources/09-09...o_animation.pdf

Link to comment
Share on other sites

folks if you are new to this biz, never short a bull market. surprises will be on the upside. and the very best traders will miss moves. the hardest part for a trader to live w/is missing a bull market that he has planned to participate in. yes, there will be corrections , take a seat and enjoy the ride. it will be the most profitable. last time the most famous bugs left the train in the 400s. too far too fast. too high. and only 4 months later , the price doubled dharma

Link to comment
Share on other sites

"This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to their altered money relation.

 

There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services.

 

These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy...

 

But then, finally, the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against 'real' goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.

 

"It was this that happened with the Continental currency in America in 1781, with the French mandats territoriaux in 1796, and with the German mark in 1923. It will happen again whenever the same conditions appear. If a thing has to be used as a medium of exchange, public opinion must not believe that the quantity of this thing will increase beyond all bounds. Inflation is a policy that cannot last."

 

Ludwig von Mises

 

 

dharma

Link to comment
Share on other sites

Congratulations Gold/Gold Stock Bulls!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

For the few that have hung in there, especially since late last year, you'll agree that it has been well worth it! It's been far too easy being a Gold/Commodities Bear/Dollar Bull, always seeing the world as a "glass half full."

 

Hope you're enjoying the ride!!!!!!!!!!

 

We tried to warn them, “Don’t short Gold in a bull market!”

 

But these “Fundamentals Useless” Dollar Bulls/Commodity Bears just would not listen. And of course wrong yet again, they’re no where to be seen. 4 Xs Short Gold? No, not amazing, not anymore. Too sad . . .

 

The reason? Aside from their failure to understand the basic fundamentals underlying these markets, these Shorts were foolishly betting on the US Peso staging a huge rally and Gold collapsing.

 

With Gold making a new all-time high today, these Shorts SHOULD begin to figure out that their Bearish bets on Gold and Bullish bets on the US Peso have been dead wrong since last March. I say "should" because I’ve learned not to assume too much from the dense dark forest Bears.

 

I’ve posted Mark Hulbert’s HGNSI for the past several weeks now trying to help these Bears "figure it out," but to no avail.

 

As of yesterday the reading of Bulls, just an extremely low 18%, or roughly half of what it was just a couple weeks ago. Of course this is history now.

 

Gold timers' wall of worry

 

Commentary: Average gold timer almost completely out of the market

 

By Mark Hulbert, MarketWatch

 

ANNANDALE, Va. (MarketWatch) -- Gold in recent weeks has provided a textbook illustration of a bull market climbing a wall of worry.

 

Contrarians accordingly won't be surprised if gold exhibits continued strength in coming sessions.

 

http://www.marketwatch.com/story/contarian...-06?siteid=nbkh

Link to comment
Share on other sites

GM, Congrats! ..

Your economc acumen continues to amaze, ..

 

I'm a longtime lurker, infrequent poster. Long gold and gold equities since 2004 through Wave I, an agonizing Wave II, and still onboard for what I now assume is Wave III. If not for encouragement from you, Dharma, Ageka, et.al., I might have folded long ago, so I want to express my appreciation for all you do here, thanks! .. :)

 

Btw, haven't seen a post from Skid in what seems like forever. Assume he is reveling in this all time high.

 

On to Valhalla, .. :)

J6P

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Tell a friend

    Love Stool Pigeons Wire Message Board? Tell a friend!
  • Recently Browsing   0 members

    • No registered users viewing this page.
  • ×
    • Create New...