Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Investor Opportunities Time

Commodities / Gold and Silver 2011 Nov 12, 2011 - 11:30 AM GMT

By: DeepCaster_LLC

Commodities

Best Financial Markets Analysis Article“The EFSF is not an adequate safety net to prevent Italian Contagion. Italy may be past the point of no return.”

 

Barclays, 11/8/11

Chinese Gold Mine Output has finally flattened, with growth estimates for 2012 at only 2.7%.


But Chinese Gold imports exploded in September 2011, with September purchases (56.9 tonnes reported via Hong Kong alone) equaling the entire first 6 months of 2011 put together – a dramatic increase even considering the upcoming holiday season. (Hong Kong figures are a proxy for total imports as China does not disclose Gold import figures.)

“The September figure is nearly 500% higher than in the same month last year and left total shipment for the first three quarters of 2011 by 128% y/y.”

 

UBS, 11/9/11

And recently, in reversal of the trend earlier this year, Gold shares (per HUI) rose substantially in the three months prior to September 2011. And after a late September-early-October fall, the HUI popped up over 600 again, approaching a Record High, before this week’s Takedown.

Most significantly, while the shares had underperformed Bullion until October 2011, after the October 20 low, their rise since has been nearly double that of Bullion.

And while it has been pretty clear to us that The Cartel** has been more successful in suppressing the price of the Shares than of bullion (“Paper” shares are easier to Price-suppress than Bullion), the evidence is that this is about to change. Why? Well, for the foregoing reasons, and…

With the Price of Bullion at record highs all this year, we expect well-managed Miners will show record profits for 2011, in January and February 2012.

Moreover, significantly, recent moves up have been in spite of relative U.S. Dollar strength.

Therefore, going into next year it makes sense to be well positioned for those earnings reports, so we just made one Miner Recommendation this week in our most recent Alert (see Note 1)* and expect to make several more in the seven weeks remaining in 2011.

And we expect the rest of 2011 will be an excellent time to buy because, very short term, we expect a pull back in the miners’ shares, which should provide somewhat better entry points than we have today.

As for Bullion itself, it has been moving up strongly and is bouncing around $1750/oz as we write. And, given the ongoing Eurozone Chaos and Chinese Buying, we expect it to make another run at $2000/oz beginning in the next few weeks.

Of course, substantial U.S. Dollar strength, such as on this past Monday, tends to hit both Precious Metal and Equities Prices hard temporarily. But Gold’s move up has been accomplished in spite of U.S. Dollar relative stability/strength. This is a clear indicator that Gold is seen as a Safe Haven. And in Euro terms Gold has been even stronger recently.

Those who have not read our recent Alert should know that our earlier forecast (correct thus far) remains the same:

“Going forward, most scenarios are Excellent for Gold and Silver Prices. Risk-on Trading, and enlarged Eurozone Bailout Funds, and the prospect of QE 3 in 2012 (see Note 3) all raise the Inflation Specter, and that is Good for the Precious Metals Prices.

“Risk-off” behavior in the Markets indicates a likely Investor focus on Gold as Safe Haven to the extent that that “Risk-off” Markets behavior reflects Economic Weakness. But that is not so good for Silver, due to perceived slackened Industrial demand.

Nonetheless, an increasingly severe shortage of Physical Silver will tend to keep Prices high for it as well.

In sum, short, medium, and long term we are Bullish on Both. The only caveat is that The Cartel** will surely continue its Price suppressing attacks, so continue to be psychologically prepared to weather Great Volatility, the Big V, and to Buy on the Dips.

As to specific Forecasts, since we see The Fed-led Cartel doing ever more de facto QE (and by whatever Euphemism it is called, e.g. Operation Twist) going into 2012 and that is Hyperinflationary, and Good for P.M. prices and Bad for long-term Economic Health. Short term, like a Sugar High, Q.E. tends to temporarily boost an Economy, but worsens the economy in the long run.

We expect the next few weeks will provide Precious Metals Investors the opportunity to take advantage of the first half of the Old Axiom “Buy Low” with excellent prospects for “Selling High” down the increasingly Bumpy Road.

 

Best regards,

By DEEPCASTER LLC

www.deepcaster.com
DEEPCASTER FORTRESS ASSETS LETTER
DEEPCASTER HIGH POTENTIAL SPECULATOR
Wealth Preservation         Wealth Enhancement

© 2011 Copyright DeepCaster LLC - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

DEEPCASTER LLC Archive

© 2005-2019 http://www.MarketOracle.co.uk - 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