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

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Mon, 09/05/2011 - 09:04 | 1633891 bullionbaron
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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:

http://www.bullionbaron.com/2011/09/precious-metal-stocks-breakout-gdxhu...

Mon, 09/05/2011 - 09:17 | 1633950 problemfixr
problemfixr's picture

I think you are on to something, Baron.

Mon, 09/05/2011 - 10:57 | 1634438 Precious
Precious's picture

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

Mon, 09/05/2011 - 09:18 | 1633954 jekyll island
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.  

Mon, 09/05/2011 - 09:23 | 1633988 bullionbaron
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.

Mon, 09/05/2011 - 10:09 | 1634234 Fuh Querada
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.

Mon, 09/05/2011 - 10:26 | 1634304 Thomas
Thomas's picture

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

Mon, 09/05/2011 - 09:45 | 1634092 MFL8240
MFL8240's picture

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

Mon, 09/05/2011 - 10:03 | 1634198 jekyll island
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.   

Mon, 09/05/2011 - 10:10 | 1634244 FEDbuster
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.

Mon, 09/05/2011 - 10:17 | 1634273 jekyll island
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.  

Mon, 09/05/2011 - 11:20 | 1634521 Smiddywesson
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.

Mon, 09/05/2011 - 10:54 | 1634421 Snidley Whipsnae
Snidley Whipsnae's picture

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

Mon, 09/05/2011 - 12:14 | 1634709 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1895 and green.

Physical > Miners

Mon, 09/05/2011 - 14:13 | 1635116 akak
akak's picture

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

Mon, 09/05/2011 - 09:05 | 1633893 jekyll island
jekyll island's picture

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

 

 

Mon, 09/05/2011 - 09:07 | 1633900 spiral_eyes
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.

http://azizonomics.com/2011/09/05/stagnation-nation/ 

Mon, 09/05/2011 - 09:17 | 1633926 hedgeless_horseman
hedgeless_horseman's picture

Yu can't eat it, but Yu can drive it...

...as long as Yu remember to pay the taxes.

Mon, 09/05/2011 - 09:30 | 1634010 Sudden Debt
Sudden Debt's picture

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

 

Mon, 09/05/2011 - 09:41 | 1634072 au_bayitch
au_bayitch's picture

SD @ 0930 ; Like your style

Mon, 09/05/2011 - 11:42 | 1634588 DoChenRollingBearing
DoChenRollingBearing's picture

Very good!

Mon, 09/05/2011 - 09:44 | 1634089 chindit13
chindit13's picture

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

Mon, 09/05/2011 - 10:41 | 1634360 thunderchief
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....

Mon, 09/05/2011 - 11:18 | 1634518 Bicycle Repairman
Bicycle Repairman's picture

I want the whole picture.

Mon, 09/05/2011 - 09:14 | 1633934 silvertrain
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?

Mon, 09/05/2011 - 09:50 | 1634120 DefiantSurf
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

 

Tue, 09/06/2011 - 21:42 | 1640456 Fiat2Zero
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?

Mon, 09/05/2011 - 10:09 | 1634240 StychoKiller
StychoKiller's picture

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

Mon, 09/05/2011 - 10:39 | 1634365 DosZap
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.

Mon, 09/05/2011 - 11:25 | 1634538 Smiddywesson
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.

Mon, 09/05/2011 - 09:14 | 1633936 Bringin It
Bringin It's picture

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

Tavistock: The Best Kept Secret in America

 

Mon, 09/05/2011 - 09:28 | 1634004 tamboo
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 ...
Mon, 09/05/2011 - 09:26 | 1633997 mrgneiss
mrgneiss's picture

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

Mon, 09/05/2011 - 10:05 | 1634217 Muddy1
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

Mon, 09/05/2011 - 09:22 | 1633979 apberusdisvet
apberusdisvet's picture

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

Mon, 09/05/2011 - 09:24 | 1633989 Tense INDIAN
Mon, 09/05/2011 - 09:30 | 1634011 Motley Fool
Motley Fool's picture

buy Tradition

Mon, 09/05/2011 - 09:30 | 1634012 Pimp Juice
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.

Mon, 09/05/2011 - 10:38 | 1634361 X.inf.capt
X.inf.capt's picture

i like that.

Mon, 09/05/2011 - 09:32 | 1634024 DutchSucker
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!

Mon, 09/05/2011 - 09:38 | 1634056 MFL8240
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.

Mon, 09/05/2011 - 10:07 | 1634227 Muddy1
Muddy1's picture

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

Mon, 09/05/2011 - 10:37 | 1634358 DosZap
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.

Mon, 09/05/2011 - 11:49 | 1634605 FeralSerf
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.

Mon, 09/05/2011 - 09:35 | 1634038 MFL8240
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.

http://www.washingtontimes.com/news/2011/sep/4/jihadists-plot-to-take-over-libya/

 

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!!

 

http://www.realclearpolitics.com/video/2011/09/04/rep_maxine_waters_calls_for_a_trillion_dollar_jobs_program.html

Mon, 09/05/2011 - 10:08 | 1634233 Muddy1
Muddy1's picture

Maxine's job program = reparation

Mon, 09/05/2011 - 10:49 | 1634391 DosZap
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).

Mon, 09/05/2011 - 11:57 | 1634650 DoChenRollingBearing
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!

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