This AM, gold rise started in Asia, not in London as yesterday... I
just ordered 10 American Eagles (gold)(Blanchard, where the trader told me gold coins buying has increased significantly last 3 weeks). For me it is a fisrt (I mean, buying and taking delivery of gold). I used my profits from other stocks I unloaded to buy gold mine stocks. If Buffett hoarded silver, we cannot let him hoard gold.
IBD this AM: futures article (D.H.Gold): not a word about what happened to silver or gold yesterday BUT: a timely "special monthly mutual fund feature", is entitled "Asian Crisis Sparks Heartbeat in Gold Funds".
Caesar Bryan (Gabelli gold fund) suggests that gold could reach 320 in a few weeks and that selling gold for European Monetary Union purpose is coming to an end". Rajendra Prasad (editor of the Mutual Funds Leader" is cited as saying that "gold seems to have turned the corner".
In IBD Mutuals'Funds Total Performance, in the table of Top Industry and Sector Funds we see that for 4 and 8 weeks, Fidelity Select Precious Metal is first (20 and 24% increase at 4 and 8 weeks) while the 6 best funds at 4 and 8 weeks are all precious/gold funds.
In 197 sector groups, Metal Ores-Silver Gold, after being in 197th
positions for months, zoomed to 169th position in last 2 weeks...
We have bottomed in gold. Many communities are hoarding physical gold
(IMHO) as it is easier than buying a gold mutual fund in many countries.
Last comment: shocking to see that gold funds (IBD again) shows precious metal mutual funds don't have many million on board, yet! and that what is more worrisome, while the DOW is trying for a new high, the IBD mutual Fund Index graph shows clearly that we are far from being able to make new highs in mutual funds (index peaked in October at about 510 and is now at about 480)... That suggests to me that we ccould be in for another market drop soon because I don't see investors continuing pouring money in funds if new highs are not met, or if volatility continues to increase.
Good luck
Gaston |
