Metals Soaring As Many Seek Safety

Look at that upward spike on gold this morning. What is happening? Are the boyz holding off? Why? Will they allow gold to go above 960? The over night markets foretold a good day for the metals. Gold is 935.40 up 10.90 and silver is 14.31 up 0.16. Both are on up ticks.


May be time for a to put at 10% trailing stop on some of our trading shares.

From Kitco.com:

Gold demand jumps on higher investment
Wed May 20, 2009
By Frank Tang

NEW YORK (Reuters) - Global demand for gold jumped 38 percent year-over-year to 1,015.5 tonnes in the first quarter as sharply higher buying in gold investment products more than offset depressed jewelry consumption and industrial usage, according to an industry report released on Wednesday. Read it HERE.

From KitcoCasey.com:

Tax Revenues Tanking
By David Galland, Managing Editor, The Casey Report

While everyone else has been focused on the banks’ stress tests and how much government is spending to bail out troubled “too big to fails,” a disturbing trend on the other side of the equation is now emerging: how much (or rather, how little) the U.S. government is receiving in tax revenues.

After combing through the past 25 editions of the “Monthly Treasury Statement of Receipts and Outlays of the United States Government,” which is compiled and published by the Treasury Department’s Financial Management Service, we created the following chart.

Read it HERE.

Will the Federal Government reduce spending to cope with short fall? NO! That is not in their vocabulary.

News on one of my favorite silver stocks from MineWeb.com:

Silver Standard has high hopes for Snowfield gold project in B.C.

Silver Standard reports that the combination of two adjacent northern British Columbia gold projects holds the potential of "a world class deposit."

Author: Dorothy Kosich
Posted: Wednesday , 20 May 2009

RENO, NV -

The growing strength of gold and copper resources discovered on the Seabridge Mitchell zone-- combined with Silver Standard's own five-fold increase in gold resources at the adjacent Snowfield Gold project-has prompted Silver Standard to step up its drilling program in northern British Columbia.

In its 43-101 resource estimate for Mitchell in 2008, Seabridge estimated 16.3 million ounces of gold and 2.9 billion pounds of copper in the indicated category. Meanwhile, Silver Standard reported measured and indicated gold resources of 4,362,000 ounces earlier this year for its nearby Snowfield project.

Silver Standard CEO Robert Quartermain told analysts Tuesday that the combination of the two properties holds "a world class deposit." Silver Standard plans at least 20,000 meters of follow-up drilling this year to upgrade inferred resources on Snowfield Gold. Read it HERE.

Talk about innovation how about this from MineWeb.com:

MORE THAN A MARKETING GIMMICK

German firm plans gold ATMs to feed explosive growth in physical gold demand

A German asset management firm plans to set up 500 gold automatic teller machines across Germany, Austria and Switzerland as appetite for physical gold surges.

Author: Peter Starck
Posted: Wednesday , 20 May 2009

FRANKFURT (Reuters) -

Private investors should hold up to 15 percent of their wealth in physical gold, according to a German asset management company which plans to set up 500 "Gold-To-Go" ATMs in Germany, Switzerland and Austria this year.

A gold-dispensing automatic teller machine (ATM) was on display at Frankfurt's main railway station for a one-day marketing test on Tuesday.

A one-gram (0.0353 ounce) piece of gold, the size of a child's little fingernail and about as thin, cost 31 euros ($42.25) -- a 30 percent premium to the spot market price.

The flat rectangular piece, bearing the imprint of Belgian metals and speciality materials firm Umicore (UMI.BR), came out of the cash-only ATM in a tin box, including a certificate of authenticity. Read it HERE.

What a way to profit from sales of gold. 30% commission and an easy way to sell or buy gold.

From Bloomberg.com:

Gold Demand Surges 38% on Investment, Council Says

By Claudia Carpenter

May 20 (Bloomberg) -- Gold purchases rose 38 percent in the first quarter, led by investment demand that exceeded usage by jewelers for the first time since at least 2004, according to the World Gold Council. Read it HERE.

From MineWeb.com:

FLYING WEDGES

Gold on the cusp - $1,375 on the cards

The 'Sell in May' situation could arrive right on time this year, according to Roger Wiegand, who anticipates the next larger, extended rally in gold this fall. Interview with The Gold Report.

Author: The Gold Report
Posted: Wednesday , 20 May 2009

VANCOUVER, BC -

The Gold Report: Roger, last week in your newsletter you talked about seeing two "flying wedges" in the Dow in the technical charts. Do these wedges have anything to do with the proverbial "Sell in May and go away"?

Roger Wiegand: Those two little wedges can be either continuation triangles, which go straight sideways, or they can be bull flags, which occur when the end of the pennant points in an upward direction. As I recall, the two wedges we saw were pretty much straight sideways.

What had happened is the NASDAQ, the S&P 100, the S&P 500, and a couple of other related indicators all signaled stocks were in a bull situation, and they should continue to climb in price. Then they stopped and prices came back a little bit and we saw one of these wedge-shaped patterns. It was over rather quickly. It was only within a matter of a few days that I expected prices to either take-off again immediately in a new rally or, fall. It fell a little bit but, instead of continuing to sell, it started in another new wedge. This is a highly unusual chart pattern signaling manipulation, in my opinion. Read it HERE.

Well, I must get to putting in a few trailing stops. Remember that our God is in control. And the wrath of God is being poured out on our now pagan nation, because the body of Christ: His churches have failed to glorify Him and worship Him. We, as His people, have failed to be obedient children. Pray that the Holy Spirit would wake us and turn us back to Him before we go the way of so many pagan nations of the past.

Best, Doug