Bouillon rallied back to it's Feb. 5th level while most other holdings traded lower on concerns about the lack of details in U.S. Treasury Secretary Timothy Geithner's bank recovery plan.
My Precious Metals Stock Portfolio is down 1.1% from its Feb. 5th startup position while Bouillon is flat; the TTGD Index is down 1.4% and SPDR shares are down 1.1% as well. I was hoping to buy back some Iamgold shares today at a 8-10% discount from Feb. 5 close but yesterday's selloff did not continue.
I was surprised to learn today that the SPDR Gold Inventory has been increasing at a rate of 790,000 ozs/month since Sept. 30th of last year. This is a good reference website with lots of historical information. This data supports my hypothisis that gold fund buyers are likely replacing jewelry and other industrial use buyers on the demand side of golds price equation. I still think that there are still plenty of sellers out there such as Saudis, Russians & Chinese but Joe Average is definately offsetting selling pressure. I still want to see Gold break thru the $1,025/oz level before going out big on margin.
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I haven't posted to a "regular blog" before so I haven't a clue as to whether this will work or not. Dingleon1 likes the odds of shorting gold, here: http://finance.google.com/group/google.finance.702696/browse_thread/thread/9a3433386a670b7e?hl=en#. A summary of his position: Currencies are no longer backed by gold, so when countries "print money", there is now no actual gold demand created by this. The only thing supporting the price of gold is investors, and we all know how fickle investors can be!
ReplyDeleteThat said, both the price of gold and at least one gold mining co. (Yamana Gold Inc. Public, NYSE:AUY) did very well today.