Is this the Gold Rush?
Gold is above $600 with jets blasting away! For the last 24 hours, gold has been very strong against the increasingly worthless dollar. High of $618.20 and low of $605.10. It is currently $615.20 and very strong. Silver staying above $13 and is now $13.52. The base metals are moving upward, as well, with copper leading the way.
Foreigners funded our debt above expectations which was a surprise. Guess they have nothing else to do with their funds. Of course, some must be buying precious metals.
The mining stocks have stirred up some, too. Not the big rush, but all are on the high side today along with the precious metals. DROOY is holding above $1.60. I may miss some opportunity, but I almost never short or play puts on precious metals or the mining stocks. I have sold calls against the box (Sold calls against stocks I owned). At these rare times, I have made the execution price well above the market at the time. Thus, the calls were almost never exercised and expired to my advantage. There may come a time for a reverse on this, but I believe the timing will not be correct until gold is well above $800, maybe above $1 or $2K. Don't get burned by doing this now! You have to be very nimble and on top of the market on a daily basis.
The markets are always exciting and interesting. The metals are gaining some interest. Maybe a few of the masses are beginning to take notice. NOT! Ask the man on the street and you will be amazed over how few are even taking notice. Maybe at $700!
We may be due for a correction. I do not expect an extended one, though. Even if the Iran nuclear threat were to be solved peaceably, I do not see a significant fall back in the price of precious metals. Those in the know are fueling the fire under them now.
By the way, notice how the Central Fund of Canada (CEF) has move above $9.00. Nice, eh!
I will be out of pocket until late Friday. Back then, Lord willing!
Best to each, Doug
Foreigners funded our debt above expectations which was a surprise. Guess they have nothing else to do with their funds. Of course, some must be buying precious metals.
The mining stocks have stirred up some, too. Not the big rush, but all are on the high side today along with the precious metals. DROOY is holding above $1.60. I may miss some opportunity, but I almost never short or play puts on precious metals or the mining stocks. I have sold calls against the box (Sold calls against stocks I owned). At these rare times, I have made the execution price well above the market at the time. Thus, the calls were almost never exercised and expired to my advantage. There may come a time for a reverse on this, but I believe the timing will not be correct until gold is well above $800, maybe above $1 or $2K. Don't get burned by doing this now! You have to be very nimble and on top of the market on a daily basis.
The markets are always exciting and interesting. The metals are gaining some interest. Maybe a few of the masses are beginning to take notice. NOT! Ask the man on the street and you will be amazed over how few are even taking notice. Maybe at $700!
We may be due for a correction. I do not expect an extended one, though. Even if the Iran nuclear threat were to be solved peaceably, I do not see a significant fall back in the price of precious metals. Those in the know are fueling the fire under them now.
By the way, notice how the Central Fund of Canada (CEF) has move above $9.00. Nice, eh!
I will be out of pocket until late Friday. Back then, Lord willing!
Best to each, Doug
posted by Doug @ 8:39 AM
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