Gold Reaches $1,900 Again - Supported by Risk of U.S. Recession, German Euro Risk and Wikileaks China Gold Cables

Tyler Durden's picture

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bullionbaron's picture

If you think there is potential for the metal to hold or even run higher from these levels short term I think the preciouc metal miners offer a fantastic opportunity.

A huge breakout to new highs (and out of an inverse head and shoulders) on the GDX and HUI on Friday is very bullish and they are due for a large run.

Charts and further commentary on my blog:

problemfixr's picture

I think you are on to something, Baron.

Precious's picture

"The problem with gold is that it's simply too expensive to melt into bullets." -- precious

jekyll island's picture

Let's be a little more specific, BB.  High quality miners will move forward, over 80% of mining companies do not make money.  Gold and Silver do not require management or have a board of directors making stupid decision, we have the government for that.  

Secondly, gold and silver producers have and will do well in the current fearful environment.  My gold explorers haven't done anything, some are down 40% or more.  Encourage people to buy mining companies with good management, good share structure, plenty of cash, good results and are already in production or just about to start production.  All the others are speculation and should be treated as such.  Oh, buy on the dips, 20% of what you would like on the first tranche and wait to see what happens.  I jumped in a couple times at what I thought were good entry points only to see them fall another 30% or more. That is the way of mining stocks.  If you can't stomach the risk, just buy physical gold and silver.  It will serve you well.  

bullionbaron's picture

You raise some good points. It is important to ensure you buy high quality stocks with solid management & a good cash buffer. For those who are new to the stocks but see the potential in them being undervalued as a sector then you could also look at exposure to an ETF which tracks a basket of miners like the GDX.

Fuh Querada's picture

Good quality gold (and silver)  mining stocks are a imho an essential diversification in addition to ETFs and to storing the physical metal, and having to worry about how safe that storage is. Doug Casey made a good point recently that we have fear mode now which will leave the junior exploreres untouched until the mania starts. Thus the producers are leading the current uptrend.

Thomas's picture

I would simply like to hat tip the guys at Goldcore for their nice summaries of the geopolitical foundations underlying gold.

MFL8240's picture

I agree but, must decide if you want a hard assett or more confetti.

jekyll island's picture

Your comment shows your ignorance.  You should not invest in mining stocks until you are holding physical PM's, at least a third of your assets.  If you do not have a strong foundation of physical metal no way should you be investing in the mining sector.  THEN you can speculate in mining shares for the upside potential they represent.  I have had two holdings double or triple in the last year: Great Panther Silver and Silverquest.  I sold half of the position and used the profit to buy a monster box of silver and still held a sizable stake in the companies.  I would say the risk was richly rewarded.  That is the value of the mining stocks, take the profit when available and move it into hard assets or use it to buy shares in another company.   

FEDbuster's picture

You should not invest in physical PMs until you have your food, water, first aid and the means to protect it taken care of.  Two years of storage for each family member and long term production solutions for food and clean water, IMHO.

jekyll island's picture

You're absolutely right, of course.  Fill up the pantry, drill a well, guns and ammo for protection, silver rounds to buy more as you need it.  Personally I think a 6 month supply would be enough, 2 years is not unreasonable.  

Smiddywesson's picture

Your logic is faultless, but you can do both.  These things are not mutually exclusive.  

On the other hand, let's play devil's advocate.

If you wait to amass physical, you are definitely going to pay a much higher price and be able to stockpile less of everything.

I sure wish I had bought my physical first and my food later.  That sentiment is likely to remain true right up to the time that food is no longer available.  Hopefully, that time doesn't even come.  If you believe in PMs, the time to start buying is now.

Snidley Whipsnae's picture

Miner = Liar standing next to a hole in the ground...

DoChenRollingBearing's picture

+ $1895 and green.

Physical > Miners

akak's picture

Bernanke = a-hole standing next to a liar who is brown.

jekyll island's picture

Thanks for the update.  Yawn.  Wake me when gold hits $2,500.  Probably next week. 



spiral_eyes's picture

stagnation, bitchez

abolish the gold standard, have a massage-the-figures money printing economy, watch your productive base, and social system fall to pieces. 

Sudden Debt's picture

Actually, I think you can eat and ride them both. Even while sitting in that car.


chindit13's picture

Damn, why didn't I think of this when I was Marketing Director at Yugo?

thunderchief's picture

R  U Hard up for the Chinese chicks or the hot rides???... They are both a tough FUCK!!

Takes one to know one....

silvertrain's picture

Cnbc said last week that it looked like the Gold bubble had burst..Can something be a bubble twice in as many weeks?

DefiantSurf's picture

You are now dumber for having watched that crap, and we are all dumber for having read your comment on that crap...thx


Fiat2Zero's picture

We do need someone to "take one for the team" and watch that crap.  Otherwise how will we know what is being programmed into the sheeple?

StychoKiller's picture

If you repeat an untruth often enough, SOMEONE will be stupid enough to believe it! :>D

DosZap's picture

CNBC is a SHILL for the Traitors in the Treserve.............They would not know a bubble if it came out their nose.

We all know what a BUBBLE IS, and looks like..............

The Entire World may be in a, Bubble, but GOLD is not even close.

Smiddywesson's picture

Can something be a bubble twice in as many weeks?

Exactly, bubbles that are popped stay popped.  That's why they are called bubbles.

Bringin It's picture

OT, but check this out.  Ineresting?  Saw it on the AEP comments.

Tavistock: The Best Kept Secret in America


tamboo's picture

the 7-7  bus went off course and blew up right in front of the place,

nice little inside joke eh?

7/7 Witness: Bus Was Diverted To Tavistock Sq. By Two Unmarked ...
mrgneiss's picture

I heard that JPM has offered to "hold" the confiscated silver.

Muddy1's picture

JPM BITCHEZ,  they'll melt it and make little bars to help cover their shorts.

Don't forget, it's Chase JPM, bury the bitchez

apberusdisvet's picture

Going forward, methinks the correctr economic term for what we face is "hyperstagflation", negative growth and incrementally increasing prices for necessities.

Pimp Juice's picture

I'm not very smart so I have developed a color coded formula:

When green turns to red buy yellow and gray.

DutchSucker's picture

According to the Yajweh tapes (indeed, its the Yahweh from the old testament :-)) the USA had transported their gold to France just before WW1. Thats why USA was somewhat involved with WW1. Hitler knew USA had gold in France during WW2.


Now I suggest Ron Paul gets his way and inspect Ford Knox.


Be suprised!

MFL8240's picture

There is proof that all of the Gold in Fort Knox was leased to foreign countries by Billie Blue Skirt and Robert Rubin.  There is no Gold at Ft Knox and anyone who thinks there is is crazy.  Ft Knox will never be audited, it would cause a global collapse within minutes.

Muddy1's picture

It wasn't a blue skirt, it was a blue dress with a sequin? (semen) accent from old blu balls hisself

DosZap's picture

Could we get the EFFEN COMMERCIALS off the damn Comment sections?........LOL

The GOLD is stored at FOUR separate locations, Ft Knox, West Point(where most US Mint coins come from), FED RES Bank IN NYC, and I forget the other CLAIMED repository.

FeralSerf's picture

The other claimed repository is "Deep Storage".  It's all there, but not in 400 oz. bars like you might expect.  It's mixed with some dirt and misc. rocks for security purposes.

MFL8240's picture


The experiment in equality that propelled an unknown clown to the White House is doing well on all fronts.  Take a look at Libya today, his success has been spread over the economy, foreign affairs and pretty much everything this clown touches.  Needs to go and we cannot wait till 2012; at least Biden has American values.


But have no fear, the witty hater Maxine (Go to Hell Tea party)  has the answer, a trillion dollar jobs program.  I guess this money will come from the taxes paid by her constituents!  Lol!!

Muddy1's picture

Maxine's job program = reparation

DosZap's picture

Maxine should be glad her ancestors sold her distant relatives in to slavery, otherwise she would never have been an American,likely never even born, damned sure would not have made it to adulthood, nor would she be a trouble making bitch in power.Between her and Sheila Jackson Lee,I have difficulty figuring which one is batshit crazy, or on permanent PMS cycles.

How's that for reparations?.Thank GOD you were given the chance to be an American(while we still were in a positive mode).

DoChenRollingBearing's picture

+ $1895

MAXINE should be one of the most grateful people in the world!  Where else could she get into Congress and bloviate to hell with no consequences?  And they re-elect her everytime!

She should indeed thank God every day!