Dangerously Close to Streaking
Good luck Laurie!
Gold $425 Silver $7.02 Monday 18 April,10pm Sydney
G'day. I certainly didn't expect to be sitting at 180.56 on the Amex Gold Bugs Index (HUI) in such quick time. I guess today's close will hold the key as to when I will be dropping the strides for the streak up Walker Street. A close sub 180 will see the bet paid. I suspect that we will be quickly back above 200 but that probably won't help that greatly.
There certainly was an air of "capitulation" in some of the metal equity issues with some outrageously good trading opportunities being exposed. How anyone can sell DRDGOLD (DROOY) at 0.30c when looking at their Non-U.S. mining assets as a stand alone is beyond me. I just don't wanna stand in front of a bus, and it seems that a few players in the last couple of days, must have "chucked in their hand" and walked away from the table. Gold off 1% from its last month high and yet HUI is down over 10%. That looks a little out of whack, but maybe it's a presage to more metal selling in the futures markets.
The gold price held resolutely at the 422 level, again. That's a spot price, I always refer to spot, not a futures contract. The next support level should kick in about $416-7 and the resistance that proved so stubborn at $428 should provide another glass ceiling before $432.
Silver anywhere down near $6.80-90 is optimal buying, IMO, and not advice.
Has anything materially altered in the macro picture that in any way makes gold a significantly less worthy investment today, than say, last month or last year? Absolutely nothing, in my eyes. There is no other sanctuary for my capital that provides anything like the risk-return profile I need in the current environment.
The gold equities have been hammered and are trading back at levels that we saw with gold around $380 per ounce. Again, there are many issues that are trading at 50% of their last 52 week highs. I don't doubt that we will see those highs again in due course. It is gonna be a while though, it appears. Leverage is tough when the markets head south and we may be seeing a little unwinding of dome leverage in these metal equities.
The big residency application and interviews for the Princess take place on Friday and early next week. This is taking a lot too much of my time recently but it is all drawing to a conclusion, finally. Hopefully everything falls into place and that by the time I get back to full attention to my favourite metals, gold and silver, this silliness in metals equities will have abated. At these levels, I am all sorts of keen to sell my mare!
This week will be a pretty messy one so will drop some notes as and when appropriate. It's kind of exciting yet rather intimidating, all this immigration stuff. Hmmm.
Enjoy the day
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