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Monthly Digger - February 2008


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Posted

Stopping to catch a snack while trudging up a majestic mountain won't get you there any quicker, even though you need to do it to carb up.

 

SLV is a picture I like. It even appears to be headed to the 180 area.

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Posted
A few history charts to put gold stocks buying opportunities into perspective.

 

Each time gold stocks became Dover Sole, those who bought were well rewarded and this time will be no different contrary to what the IF-And-Buts suggest.

 

In a Bull market, buy the dips, fade those chasing strength. ;)

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dharma,Jan 31 2008, 03:36 PM]

it has never been a bullish sign when the metal leads for any length of time!

dharma

 

[Private Skidmark,Jan 31 2008, 03:48 PM]

A 3-year chart of GLD vs. HUI shows them making more or less equal gains. The greatest underperformance by the HUI, at the beginning of the chart, was followed by the greatest bull run in the HUI.

 

Above is my Dec 18th post that discusses the gold metal outperforming the gold stocks. Click to view examples of several charts showing what happened as the gold metal outperformed the gold stocks. The result: the gold stocks played Catch-Up in a BIG way.

 

And a follow up Gold / HUI Chart of Dec 18th to demonstrate the most current result. This time was Not different. :)

 

I rest my case. ;)

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Posted
there are so many great posters on this board. i do have experience and it is helpful.  the juniors are being tampered w/and when the public comes in they will trade @higher multiples than we are seeing now. ones, w/good deposits and good managements will soar. also, as the majors supplies start to dwindle they will start shopping. in like november or december gs said gold will do poorly in 08. then a week or so ago they rescinded their outlook.  i guess they got long. gold traders learn patience. and what the back of the wood shed looks like. xau/gold is still in the buy zone. i am in hawaii, its not a bad place to wait!

dharma

ps. w/the electricity problems in s.africa, there will be less supply!

no matter how they slice, dice, peel this thing, the rate cut is gold bullish and dollar bearish

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i am in hawaii,

 

Hi dharma - if you're here on Oahu and would like to meet up, I'm buyin'. :)

Posted
Nice posts. Silver is acting very well.

The bullish structure of the pm miner sector remains one of the strongest in the equity market, imo.

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Bullish indeed. P&F charts provide excellent perspective.

 

Fears China may snap up last remaining large Latin American mines

 

MEXICO CITY (Reuters) -

 

Chinese miners eager to feed a roaring economy with raw materials are buying some of the last remaining big mines in Latin America, where risks are lower than China's other commodities sources like Africa. . . .

 

http://www.mineweb.net/mineweb/view/minewe...45655&sn=Detail

 

Russian Billionaires Seize A Golden Opportunity

 

MOSCOW ? The country?s metals billionaires are moving into gold, attracted by record prices and the prospect of carving a share of production that is forecast to rise 40 percent by 2015.

 

Six of the 10 richest Russians ranked by Forbes own gold assets in a country with reserves second only to South Africa?s. The wealthiest, Chelsea football club owner Roman Abramovich, is among the latest to join the gold rush. . . .

 

http://www.sptimes.ru/story/24884

Posted

Sorry, but I agree with Lord Jim. I monitor a number of investor, PM and financial boards and lists. All I have been reading from the August move up on 'til today, is:

 

"When should I sell?"

"When can I go short?"

"We are entering wave 2 or Wave 4."

 

Lord Jim is correct, there are many so called gold bugs who've been nickel and diming their moves, over the past several months. I hope they are firmly on the sidelines when this thing explodes.

 

 

joe b- its what makes a market. i can tell you when this goes vertical, there will bona fide heros who will give you all the reasons gold went to far too fast. etc. its why i do my own work! its my $$$ , studying markets, commodities blow off. much the same as the nasdaq did in 99-00. its breathtaking. this will end that way, all the rest of the tops are the normal ebb and flow.

 

i agree the gold stocks are starting from much higher levels then the broads or the oil indexes. the crb is approaching its highs, its very very close to taking them out

dharma

Posted

SMC: showing incredible resiliency during these PM smackdowns. once we get the thumbs up (Monday?, this afternoon?) and $HUI bungees higher, how will SMC trade? i initially thought $2 would be tough to get through, but i'm eyeing $2.20-.30 short-term, $2.80 thereafter (gap-fill, then big smackdown). you know what happens after long steady 45 degree climbs? parabolas come to mind.

 

AS

Posted

the thing that is worrisome to me right here right now, is the divergence(rsi) in spot gold. xau/hui have none. we could have a correction to adjust for the divergences in gold. silver is sporting one too. now, i have time left for the up phase, but the divergences are disconcerting so i am reporting what i see. dont shoot the messenger. if we do top here, it would be 5of 3 and wave 4 which could go down to the mid 700s. no, i am in no way shape or form a bear. it doesnt matter to me what i thought, i try and let the market talk to me. and its saying the divergence in gold/silver is saying momo to the upside may be spent. of course if these highs are taken out. then this report is for naught

dharma

Posted
IN that case, I will get the second round...

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Hi hedonic - somehow I missed your PM. It's not there.

But, yes, it's always nice to put a face to a name!

Now if we can just get dharma to come to the big city from his paradise spot. :D

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