Precious Metals have Reached an All-time High

By Benjamin Train
Monday, November 21, 2005

Gold and Silver prices have climbed to new heights today, and during the week ending November 19, netting massive gains at an 18-year high bullion market.

Gold may rise to $500 an ounce before the end of the year, for the first time since 1987, as banks and investors purchase more bullion as a hedge against declining currencies, bond markets and U.S. inflation.

Early Overnight trading on Monday, November 21st saw gold at $493.80 US in Sydney. Gold sales are up as the Dubai Gold and Commodities Exchange (DGCX) is set to open, Tuesday, November 22, 2005. According to the World Gold Council, Gold sales in the UAE went up by 26 percent to hit Dh1.4 billion ($381.2 million) in the third quarter of 2005.

Gold consumption by weight posted a 15% per cent increase in the same period. The Financial Times reported, Dubai boasts 500 tons of gold jewelery traded within it each year, and this week will see the first gold futures contract launched on its electronic exchange. Many gold dealers are awaiting the DGCX's opening to further help bolster the demand for gold Worldwide.

According to MarketWatch.com, "Gold futures added almost $17 an ounce last week with many analysts expecting the metal to surpass the $500 an ounce level before the end of the year and trade above that heading into 2006."

The Silver Association has launched an online petition to the Securities and Exchange Commission (SEC) in support of the Barclays' silver ETF. The creation of a silver ETF would promote fair trade. The Association wants a free and open market in silver, and the ability to trade in as many financial vehicles as entrepreneurs wish to issue. The Silver Association was created for the purpose of protecting the interests of silver miners, providers and investors.

Procurement of precious metals at these high prices, will also have a major effect on precious metal mining companies share values, drilling and mining equipment suppliers, project time tables and the feasibility of expanded high grade mineralization projects.

Copper dips as Britain's peak markets regulator follows reports that a rogue commodities traders working for China's State Regulation Centre of Supplies Reserves, had short-sold an estimated 200,000 tonnes of copper in the belief that the price would fall to around $US2500/t.

China is being forced to disclose its holdings of copper for the first time, as the nation seeks to limit losses from a trader's wrong-way bet on a drop in prices.

According to Bloomberg, The Beijing-based State Reserve Bureau, the country's metal stockpiling agency, said on its Web site on Nov. 9, 2005, it would sell 20,000 tons of copper. A week later, it announced another sale of the same amount.

In Beijing, a government spokesman has created further confusionabout the copper market by saying that the trades made by itsemployee, Liu Qibing, were not on behalf of the government.

Precious Metals - Confirmed Breakout

Thursday, November 17, 2005
By Benjamin Train

You can now see a double-top, or triple-top breakout confirmation, on almost every gold and silver mining companies stock price. Also the HUI and metal prices are confirming a firm bull breakout is in progress.

This breakout began November 10, since then, precious metals have signaled confirmation several days in a row.

This mornings London Gold Fix was $400.75 The critical support is $479.4. The next upside target is $489. Silvers' critical support is near $8.00, and near term targeting is at $8.19. Resistance is near $8.09 and $8.14+.

Good luck to all investors in precious metals.

Discontinuance of M3 Reporting

On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate.

The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.

Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).

Release dates Historical data About

Editorial footnote: Investors have long been aware that M3 reports have been used by the Fed to influence market movement and equity values. By not reporting the currency supply, the Fed is hiding inflationary data to protect the U.S. Dollar value and foriegn investor interest.

If an increase in the money supply is the cause of a rise in the general price level, then M3 is an important measure of "price inflation". M3 is considered to be the broadest measure of money. It has been our best measure of price inflation. According to one market observer; Yoshaviah, "The information provided by M3, coupled with the 1-Year Treasury Constant Maturity Rate, can allow anyone with a spreadsheet to track the rate of inflation."

Possible Precious Metal Short-term breakout Thursday, November 10, 2005

November 9, 2005
By Benjamin Train

Technically, gold may not be out of the woods yet, but its very close to a major move up. The rand and gold price is set to play a pivotal role on financial markets thursday. Platinum is trading at a 25-year peak

Gold mining stock charts, over the last couple of weeks have been frustrating, but if todays market action continues, we have crossed out of the near-term resistance areas and ready to make a major move up. Yes, it should move up tomorrow and Friday by giving the MACD an up bar for the week. I among others, do not yet have the confidence that a full active gold rally will develop without the 214.30 being fully tested.

Technical analysis of the price of gold and mining share prices have not been able to overcome their conflicting signals until this afternoon. This morning began with Gold higher overnight in Europe on strong physical demand. Investor demand pushed gold and silver prices to rebounded levels, even with a strong U.S. dollar position, on what was described as active spec or investor buying in the futures market.

Gold and silver stocks have been the lagging metals since they peaked in September 2005. The XAU/gold ratio has been in a weekly downtrend since then. That signal changed this morning and after the days market upturn, it continued to show gains after hours. Over the past two weeks, we have seen the XAU fall into its support zone of 97-102 and bounce back. This afternoon the support held.

We will have to see what the overnight action brings from London, but I am expecting a step up and strong close tomarrow afternoon. If morning futures are up, I will add to my gold mining stock positions with purchases in HMY, GG, NG, AU, AUY, ABX, and BGO. Keep your eyes on the support and trendlines. And the best of luck to all successful investors out there.

Gold Market Resistance - U.S. Metals Commentary

U.S. Metals Commentary
By Nell Sloane
FMNN Commodities Analyst
Founder of NSfutures.com
http://www.nsfutures.com/

GOLD (DEC) 11/03/2005:
Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The market back below the 18-day moving average suggests the longer-term trend could be turning down. The market has a slightly positive tilt with the close over the swing pivot.

The next downside target is now at 459.5. The next area of resistance is around 466.8 and 468.4, while 1st support hits today at 462.4 and below there at 459.5.


SILVER (DEC) 11/03/2005:
The major trend could be turning up with the close back above the 40-day moving average. Negative momentum studies in the neutral zone will tend to reinforce lower price action.

The close below the 18-day moving average is an indication the longer-term trend has turned down. The close over the pivot swing is a somewhat positive setup.

The next downside target is 738.3. The next area of resistance is around 763.5 and 768.3, while 1st support hits today at 748.5 and below there at 738.3.

Read the entire article at: FreeMarket News


Highland Gold acquires three Russian exploration properties:

Mid-level Russian gold miner Highland Gold said Wednesday that it has acquired properties for development in the Khabarovsk, Chukotka and Chita regions of Russia. Highland has acquired a 25 year license to develop and mine the Belaya Gora gold deposit.

The acquisition was made pursuant to a public auction at a price of $580,000. This acquisition falls under the participation agreement with Barrick, and accordingly Highland Gold will offer Barrick participation of up to 50% in the project. The C2 resources of the deposit, estimated in accordance with Russian methodologies at a cutoff grade of 2.73g/mt gold, amount to 466,000oz of gold grading 3g/mt.

Read the entire article at: MetalsPlace
http://metalsplace.com/metalsnews/?a=2842

Russia Offers Its Largest Gold Deposit For Sale

Russia's Minister of Natural Resources Yuriy Trutnev met the representatives of British companies working in Russia and during the meeting he named five strategic deposits that include, in particular, the gold deposit Sukhoi Log.

Trutnev also informed about the approval of the new bill On Natural Resources that is expected at the end of 2005 or at the beginning of 2006

Source: [Neftegaz.ru]
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