Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20
Global "Debt Mountain": Beware of This "New Peak" - 13th Nov 20
Overclocking Zen 3 Ryzen 5600x, 5800x, 5900x and 5950x to 4.7ghz All Cores Cinebench R20 Scores - 13th Nov 20
Is Silver Leading Bitcoin or is Bitcoin Leading Silver? - 13th Nov 20
How Elliott Waves Simplify Your Technical Analysis - 13th Nov 20
How to buy Bitcoins using debit/credit card? - 13th Nov 20
Will COVID Vaccine Kill Gold and Silver? - 12th Nov 20
Access to Critical Market Reports - 12th Nov 20
Stock Market Dow Futures Reach 30,000 on News of COVID-19 Vaccine Trials Success - 12th Nov 20
8 Terms & Conditions You Must Know Before Asking For Life Insurance Policy Quotes - 12th Nov 20
Gold Stocks Post 2020 US Election Outlook - 11th Nov 20
Champions’ League Group Stage Draw: All You Need To Know - 11th Nov 20
Stock Market Secular Trend - 11th Nov 20
Stock Market Correction Curtailed by US Election - 11th Nov 20
What Causes a Financial Bubble? - 11th Nov 20
Ryzen 9 5900X RTX 3080 - vs UK Custom PC System Builder Review - 10th Nov 20
Killing Driveway Weeds FAST with a Pressure Washer - Saving Block Paving from LOTS of WEEDs - 10th Nov 20
Trump Fired, Biden Hired, What Next?  - 10th Nov 20
Looking for a Personal Loan? Here Is What You Have To Know  - 10th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

US Economy Hurting, Days of Cheap Resources Coming To an End

Commodities / Metals & Mining Dec 05, 2007 - 02:21 PM GMT

By: David_Vaughn

Commodities The well known and respected Gartman Letter remains “steadfastly bullish” on gold. The seasons are bearing down on us. Thanksgiving is now over a week behind us. Christmas is just around the corner and then we have a whole new year to follow these events in repetition. Gold appears to have very strong resistance around 790, but I doubt it will remain in that range for very long. The next major resistance for gold appears to be around 815. And when 815 – 825 is crossed we will probably observe gold making new highs. Always remember its 2 steps forward then 1 step back. I can live with those statistics.

Is the economy really hurting at the moment? We could be over dramatizing things. Let's see how Sears is doing.

“Sears reports 99% drop in Q3 profit; shares tumble” “Sears Holdings (SHLD) reported a 99% drop in third-quarter profit Thursday on weak sales at its Sears and Kmart department stores and continuing investment losses under hedge-fund manager Chairman Edward Lampert.” “Profit fell well short of Wall Street expectations…” USA Today, 11-29-2007

Let's read again that last part.

“Profit fell well short of Wall Street expectations…” USA Today, 11-29-2007

Wall Street expectations were not met. Gee, they were only down 99%. But the economy's doing real well over all isn't it?

“Sears also warned it expects difficult economic conditions to persist in the near-term, with sales and gross margin likely continuing to be pressured through the rest of the year.” USA Today, 11-29-2007

Any other indications the economy may be going through some difficulties?

“U.S. says home prices are falling, first time in 13 years” “U.S. home prices marked a quarterly decline for the first time in 13 years in the third quarter, according to government data released Thursday that provide fresh evidence of the housing market slump.” “Sharpest drop in housing prices in index's history” “…our newest data show price weakening in a very significant portion of the country," agency director James Lockhart said in a statement. Prices declined in more than 20 states, he said.”

USA Today, 11-29-2007

Wow! I wonder if it is not for these reasons that gold is hangin' around 800 dollars an ounce? Na. These statistics cannot be correct as everyone knows our economy is invulnerable to significant cracks. These folk that are pessimistic about our economy and who say these things are hanging around the eggnog table too long.

I asked at the beginning of the article if you are “In A Hurry?” If you can have patience with gold mining stocks they will make you money. Got to have patience though. This gold bull market at times is moving at a snail's pace and that is alright by me. We are in a very long term trend and hard commodities will only go higher and higher…including the commodity gold.

The economy some how continues to muddle along and where does gold play in this? Many people following this market since gold cracked 300 have looked at this gold rise as a short lived rally. Everyone knows a rally doesn't last long and is just a quick momentary spike. But that is not what is happening today. Gold continues to more effectively cast off the chains of manipulation and acting like a normal market player.

Observing gold climb 25 dollars in one day and the next falling 25 is really normal action in a real functioning bull market. There are a number of nervous Willies out there who are going to panic if gold does not follow a straight and undeterred path to the moon with no corrections. But that ain't going to happen. More so than ever before we are going to witness extreme powerful volatility. Well, if things are not going to move quickly and like greased lightening what will we do? We will do what is considered the most difficult characteristic of speculation and/or investing. We wait.

Did I say that loud enough? We wait. In our gold newsletter many of the best performers have taken two and more years to reach their present highs. But it is our hope to see something we purchase fly to the moon in the first 30 days. Rarely is that type of performance going to happen. You might find it best to hold your position for six months and longer. You are correct this is not acceptable to most people. They want to see action immediately.

Watching the clock can be exciting. Just watch that minute hand whiz around the clock face to make another loop. Watching the dial on our electric utility meter can be really exciting as this is where the real action is. And we are reminded of this action every month when we pay our electrical utility bill. But seriously, people what I am preaching here is the necessity of buying quality gold mining shares and letting them do their thing.

Subscribe to a good newsletter so you can know what is happening in the market with certainty. Don't spend your time sitting in a dark closet listening to the hands of a clock slowly ticking and ticking. You'll go crazy if you are itching to make a trade every single day. Have patience in the decisions you have made and continue to educate yourself.

Coffee maker died this last week. Had to make a run to Wal-Mart's. Remember when a coffee “maker” was a coffee pot and we would sit around watching the coffee percolate on the stove? The modern generation probably doesn't even know what a real coffee pot looks like. But we remember, right? Remember, it had that little glass bubble on top? Nostalgia does count for a lot. Nostalgia helps us to keep our dreams in perspective. And gold is more that a present day dream. Gold has become today's reality and tomorrow's hope.

“The fact is that Canadian mining stocks are still remarkably cheap.” Financial Post, 11-07

We are living in the last days of cheap resources and commodities. Recognizing these facts Gold Letter, Inc. reviews undervalued gold and other resource stocks under valued and poised to rise in this time of increased demand for resources. Gold will only continue to escalate in value. Take a look at our newsletter and witness our performance overall. GL charts are computer generated and updated every hour while markets are open.

Click here to review Gold Letter

Email me if you have the time.

By David Vaughn
Gold Letter, Inc.

© Copyright 2007, Gold Letter Inc.

“The Worldwatch Institute, an organization that focuses on environmental, social and economic trends, says the current rate of global demand for resources is unsustainable.”  

The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. © Copyright 2007, Gold Letter Inc.

David Vaughn Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules