Why Gold is jumping?

[daddyeaux]

unhedged gold stocks generally do, i.e. if gold goes up 50%, the stocks may go up 100 - 150%

exploration and development gold stocks are a different universe, and depending on drill core results, those stocks can jump (or fall) in multiples........

with big gold discoveries declining, there is a scramble for proven reserves, much the same as oil companies.........

it just depends on where on the food chain you want to look at...

 

[SethArb]

well it seems like we hit another big round number
in the last 24 hours ...

and the tocom is playing catch up

http://www.yutaka-shoji.co.jp/english/market/chart/gold.html

 

[MTE]

Quote from Kensho:

Do gold stocks raise and fall by a much larger % than the moves of the underlying commodity? It seems to be the case but not sure of the reason.

The leverage effect. Production costs are fixed so the full amount of gold price rise adds to profits.

For example, say a miner has a cost of $100 per oz.
At $300 gold price the profit is $200.
At $500 the profit is $400.
.....

 

[daddyeaux]

stops above $555 were hit and volume picked up for what should have been a sleeper.......

hurricane season is only 5 months away and the Fed. will have to print another $75 billion to buy up flattened real estate.......

puts the thrill back into getting up in the morning....

 

[SethArb]

now the question is ...

if in the next 30 days we will see
$600 before $500

I have to think if it is the former ..

silver price will hit $10 ...

 

[drsteph]

Quote from SethArb:

now the question is ...

if in the next 30 days we will see
$600 before $500

I have to think if it is the former ..

silver price will hit $10 ...

Isn't silver really the sleeper here? I liked it at $5.50 a lot. Have really no idea what its upside limit should be though.

I still think someone wants to come in and smack this hard back down to 500 ish.

 

[flyingiguana]

Quote from drsteph:

Isn't silver really the sleeper here? I liked it at $5.50 a lot. Have really no idea what its upside limit should be though.

I still think someone wants to come in and smack this hard back down to 500 ish.

soon time to melt down my forks

 

[daddyeaux]

reason for gold going up...

seeing that M3 money supply data will soon be dropped by the fed....

look at the last 2 months worth of printed money...yikes...200 billion!!! no wonder they want to hide it......

(M3 in billions)

2005-Jan. 9480.6
Feb. 9514.3
Mar. 9588.4
Apr. 9669.3
May 9674.3
June 9764.3
July 9774.7
Aug. 9876.1
Sep. 9956.8
Oct. 10018.4
Nov. 10090.0
Dec. 10216.0

 

[daddyeaux]

the dollar is being printed at a rate that could buy out the entire COMEX silver warehouse stocks in about 9 hours..........


not counting the 800 million oz. sold short

 

[mhashe]

Quote from mhashe:

Less production, more demand.

About to start the greatest bull market in history.

yep. top target now $750 and next Crude oil top at $88 Enjoy the trend