gold in USA is primarily a papergold game
we specialize in futures contracts
note the action on Wednesday with afterhrs dumping
that battle was all fought on the futures market
Asia is primarily a metalgold game
but Tokyo is into both metalgold and papergold
ToCom is having a big gold year in futures, mostly long
London is primarily a papergold game
but Germany and Russia are heavy into metalgold
and Arabs and Indians all big big into metalgold
this is a titanic struggle, in early skirmishes
take tremendous heart in the metal resilience this week
that was major league strength this week, bouncing back
pressure is building, and be assured of that
consolidation is underway
metalgold defended the amateurish papergold attack at #320
it will be harder to knock down #320 next time
we are at #325 now, and in now way ready to push #330
weakness in US stocks only fortifies the consolidating support at #320
that is my opinion and interpretation
it seems the whole world is looking to see if stocks and dollar rebound from this low support area
it may bounce, but I think very weakly, like all previous
the real action now is with the USdollar
it is stuck between 110.5 and 112, jerking around
my take after reading several opinions out there is that consensus thinks this range will hold and possibly provide a base for a good bounce above 112
maybe it will, but I dont think so
I say it will catch its breath, for assault soon downward
and take gold higher with it, but only after a couple weeks
summertime is the LOW season for gold
if we tread water and withstand assaults this early summer...
GREAT
as for Barrick, they are not in the gold production business
they are a very large hedge fund, which gambles on gold
please read that Barrick hedge article I put on thread early yday
it exposes a dire situation for Barrick
all attempt to acquire a smaller gold unhedged producer failed recently
that exposes them to higher gold prices in a huge way !!!
they are facing margin calls now from JPMorgan
they have lied to shareholders about their hedgebook
all evidence regarding the margin call puts their words to lies
every $10 rise in gold means $125M in further losses on hedgebook
their hedgebook has moved from +$50M to -$275M in one quarter
(from memory, dont hold me to those numbers)
they will be dead with gold at #400
Barrick senior management is the most arrogant in gold industry
they all came from finance, not mining
watch them die, with joy, since they deserve it
they have been tools for JPMorgan for ten years
they alone are responsible for gold down $20-30 lower than it would have otherwise
they can be pointed to for bankrupting many gold firms
they deserve to die
/ jim |
