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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (85971)	9/6/2007 2:45:07 PM
From: orkrious	Respond to of 110194

trotsky [ PM ] September 06, 2007 12:06PM [hide msgs from this user] Registered: 7 months ago Posts: 231 not much has changed in the quantitative sentiment backdrop, which continues to look quite constructive for precious metals shares. however, i thought i'd mention that it's not a stealth rally anymore. today's move smells of 'recognition wave'. sooner than expected it appears that gold will test resistance levels established in both 1980 and 2006. also, keep in mind that the current nominal price rally is even more substantial in real terms. in short, the current rally is qualitatively far better than the rally from late 2005 to mid 2006. gold mining margins should improve considerably, and this appears not to be fully discounted yet in gold share prices, which for the most part remain uncharacteristically subdued. no doubt this has to do with the fact that the broader market still looks quite dangerous due to the ongoing and as of yet unresolved credit crisis. however it should be noted that the credit crisis is one of the reasons for gold's sudden run. the market is making a statement w.r.t. to its expectation of coming money supply pumping on the part of the central banks. ironically, a strong gold price really puts the central banks into a box here. couldn't happen to a bunch of more deserving guys.