Thursday, August 2, 2007

Under The Radar

Gold Provided The Only Glitter For Sectors In July
Aug. 2, 2007 (Investor's Business Daily delivered by Newstex) --

It looked simple. Stocks and stock funds were down. So gold funds rose in July.

They gained 3.73% on average, according to Lipper. It was the group's first month in the top spot since November.

In a bruising month for the overall market, it was the only sector to gain ground.

Gold gains as outlook looks positive

Gold held by StreetTRACKS gold ETF surged more than 10 tonnes to a record high of 506,69 tonnes today from a day earlier, data showed.

Japan’s first exchange-traded fund tracking a gold price index was launched with initial assets of ¥5,096bn today.

'Remarkable' speedup in gold miners' dehedging

LONDON -- Gold miners accelerated their de-hedging programs during the second quarter, drawing down hedges by another 5.4 million troy ounces to 31.2 million ounces, metals consultancy Virtual Metals said Thursday in a joint report with Mitsui & Co. Precious Metals.
This cut, a record 15% decline, was the 21st successive quarterly reduction, and means gold hedging worldwide is now 70% lower than its peak in the third quarter, 2001.


Why the gold market is an investor's best friend

They say diamonds are a girl's best friend. For investors right now, I'd change that to the gold market.
Let me kick off with a couple of juicy statistics…

• Industrial demand for this popular metal hit a record 458 tons in 2006.

• Investment demand soared 45%

• Gold supplies fell almost 15% in 2006.

The Lear report says producers in countries like South Africa are simply unable to keep up with the sizzling demand from Asia and the Middle East. The jewelry industry is a mega global business in both regions, with sales hitting $44 billion last year.

It's not often you hear the phrase "a gold supply shortage." But that's changing now. Having socked away vast gold reserves for decades to diversify their holdings, the world's central banks are now changing their tune.

Their collective gold stash is dwindling rapidly, causing them to have less control over the gold market. As a result, private investors are jumping in with a vengeance, confident that less central bank control over buying and selling means less price volatility.

In fact, private investors have gobbled up 7,500 ounces of gold over the past five years - and now control more of the supply than central banks, according to CPM Group. That's huge!


Clearly, demand for Gold is rising. And "investor" demand is apparently leading the pack. Investment demand is what will ultimately lead Gold to and through $1000. Investment demand will overwhelm any and all central bank shenanigans and absolutely crush the Vermin of the Comex. Too find headlines and stories like these you have to dig. The general media would rather have you believe that Gold is an asset of Risk. Why has Gold been labeled a risk by the media anyways? Because most of the buffoons writing in the financial press have little, if any, real understanding of Gold. Too many believe Gold to be a commodity. Gold is a metal. Copper, nickel, and zinc are metals too. They may all be metals, but is the fools choice to lump Gold in with all metals and consider it "just another commodity". Gold is honest money. Gold is a store of wealth. Gold is the Truthsayer. Gold rides through the streets by day and by night with just one clear message: "Save yourself. Buy Gold Now!"

Gold and Silver had a relatively quiet day today. Our near term goals remain the same: Gold Bulls must regain the ground above 668, and Silver Bulls must regain positive control of its 50 day moving average. As an ominous sign for Silver Bears, the Reverse Head & Shoulders Bottom developing on the Silver chart should have all dem Rat Bastids on HIGH ALERT. The neckline is falling as we mover forward in time. And that means the price [now at 13.34] at which Silver breaks higher falls by the day. A break above the neckline could catapult Silver towards 15 and severely singe the hides of the paper pushing Vermin of the Comex. I will post a chart of the Silver Bulls WMD daily until this pattern is resolved.

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