Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Don't Bet What You Can't Lose or Won't Do


Gold $428 Silver $6.82 Tuesday 3rd May, 10pm Sydney

G'day. Not too much to say today as the levels mentioned repeatedly recently have held, although gold looks under pressure again in London. Plenty of good support has been seen at the $428 level and I expect this to continue to provide us some comfort. The 200DMA isn't that far away and we may well be primed for a test of that $423 level. Interestingly the 100DMA is at 428ish. Silver's 200DMA is looking a little more like resistance at present, up there at $6.94. As long as we hold the $6.35 level the uptrend from back in'03 remains intact.

I see that AngloAshanti (AU) reported a 75% decline in net revenues on rising costs. Get used to this theme for a while, with many other miners, not just South African, who are to soon report. Aussies and Canucks won't be immune either.

All up it was a pretty quiet night for the metals, especially with half the world on a holiday. Oil was interesting and buying sub $50 will likely be seen as a great deal in coming months/years. Time horizon will be key to any success, as oil continues to be very whippy and short term players would want fast feet in current conditions.

We may see some pressure on gold tonight with the dollar a little stronger. Silver, well, silver is just silver and does whatever it pleases. Are people aware of how much silver is used in armaments and weapons systems on missiles and the like, medicine, technology and biotech amongst many other uses, such as a store of wealth? I think we should have a closer look at what silver is being used in, 'coz it's used in nearly every industry, in one form or another.

What's that old saying - " idle hands are the devil's workshop"?? Well, mine were idle last night so I thought I'd better get my feet moving.

As some may be aware, last night saw the settling of a bet I made about a year ago when I said that if the Amex Gold Bugs Index (HUI) traded below 180, I'd run Walker Street naked. Our office is in Walker Street and so is my old apartment. I know plenty of people around that particular strip and it is a high traffic area. It was bloody cold, too.

Anyway, Lisa and I jumped in the car and headed across the Coathanger (Sydney harbour bridge) to North Sydney at 9.30pm. There weren't that many people around so it was just a case of "grin and bare it." But first we should set the scene.

The office is 100 Walker (midway) and I had the choice of which direction I would run. Heading south meant running past Albert's - a well known local pub, The Metropolis nightclub, crossing the Pacific Highway and turning at the train station entrances. To the North was Berry St, one of the main approaches to the Harbour Bridge, and Wenona Anglican School, one of Sydney's most prestigious private high schools for ladies, and the relative "safety" of North Sydney Oval.

The chances of running into the constabulary to the South were significantly higher than the Northern route, but it was basically a short, flat track. The Northern route is a much steeper run and about 500yards further (round trip). Risk management was required and we pondered it for a while, as I stood around in my dark blue bathrobe. I knew if I sprinted, they probably wouldn't have seen me at Alberts or Metropolis, but crossing a 6 lane highway at a major intersection was pretty dodgy, especially with the train station so close. And I had to get back again. I took the Northerly option. The Pacific highway was a little too daunting.

I set out from outside Walkers Café, next door to the offices, at about 10pm. There were no pedestrians in sight (on my side of the road anyway), but the amount of bloody cabs cruising for fares was disconcerting. Lisa kept an eye up the hill for any nuns or cops (or schoolgirls making their way home) and gave the green light. She had the camera and the car. I took off and immediately a vacant cab pulled around the corner at Berry St. Our taxi cabs here have the same lights on their roofs as the police when silhouetted. The little orange "vacant" sign on top was the only giveaway. A heart starter, or what?

I bolted the first 100 yards or so, uphill to the Berry St corner and didn't get the traffic lights. There was nowhere to hide. Shrinkage was an issue with the cold weather. I got a few toots of car horns and didn't wait for the lights to change. I made it to McLaren St without incident and had to wait in the shadows of some bushes while I saw some pedestrians crossing Walker St, just up near the school. I didn't want to freak anyone out so caution was paramount (especially any high school girls who would've been scarred for life had they witnessed such a gross sight). Anyway, I made it to the Oval and immediately turned and headed back to the office at full speed. It was lucky that North Sydney is so quiet on Monday nights that only a few office workers and many car/taxi drivers(and the cleaners at the Gym) caught the sight. I donned my robe and jumped in the car, quick smart.

I didn't notice Lisa taking many photos but I sent the ones she did to the necessary parties. Ya gotta have proof when ya talk about something like this.

Don't bet what ya can't lose or won't do. Simple.

The chili that Lisa made was awesome. She reckons it was really mild compared to the stuff she used to deal with in Texas. Hmmm.

Enjoy the day...

< Previous
  • 1
Next >
position in gold, silver, au

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos