Why I am so bullish on gold and CWA, MGD, DML,SVB and any other mining stocks in this 1998???
For several reasons:
1. 1997 was the worst year in gold history for nearly 18 years, although hit $276.50 in January 1998 due to ECB formatting and several central banks sold and oversold their reserves, even they said they will decide the % of reserves of ECB, but indeed they had sold or oversold already. See Belgian central bank governor Alfons Verplaetse's comment that no more central bank selling gold, also see Peter Munk, Barrick Gold Corp CEO, his comments on ecb impact on gold, he also had received personal assurance during a recent gold industry conference in Davos, Switzerland that ruled out sales by central bank sales by Germany, France , and Italy, which are 75% of that ECB.
2.U.S. unemployment rate hit 20 years' low since 1976 at 4.3%, anyone dug out economics 101 to see that Phillips curves will tell in 1997 gold price so bearish and U.S. unemployment rate was getting so low can tell what the real story is. Need discerned eyes YEAH!!!! It tells me that before ECB is established several central banks HAD SOLD AND OVERSOLD THEIR GOLD RESERVES ALREADY. Why unemployment rate going down and inflation also going down as gold price went down. It did not make any economics sense does it??? Therefore according economics theory gold has only one way to go that go up.
3.Gold Field Minerals Service's comments that the record gold supply in 1997 should not repeated in 1998. [because they did it; they sold the gold and oversold it. They did make that GOLD so cheap @ $$276.50 18 years' low. They moved along my profits and your profits to nobody, in deflation, the buyers will never claim a winners but losers. But this will not going to happen in 1998.
4. This year silver had a big movement until this 14 days but it will support @$5.42 as tested today, gold also had good move, gold hit $315, June contract in early April, and then retraced to today's low @295.90 before rallied to $299.70 nearly over that $300.00 again, tommorow it will or next days etc. Both silver and gold had a beautiful trading patterns, climbing bowels, refused to go down and came back up strongly, It also had an island reversal pattern, opened gapped down one day and next day opened gapped up, this is the most bullish indicator ever. Aslo open candle stick gold closed near at the day hi.
5.Markets go up up and down down it always have some sort of patterns, rainbow trouts have their feeding patterns, too, why human beings are so different??? Recognize these patterns and try to understand the market itself, not I think or I assume there is "no-me-theory" but "market theory". Must we understand ourselves and understand the market every 100 trades we will win every 100 times. or else 50/50 or even worse 100 times loses.
Good luck to everybody, && make lots $CD this golden YEAR 1998.
regards
John |
