The Bullion Report – August 31, 2010
Gold Stocks – the Long-Term Perspective
Kitco
Displayed below is a long-term weekly chart of the Barrons Gold Mining Index (BGMI) with a log scale. The chart includes the BGMI’s 200-week moving average (in red) and two upward-sloping trend-lines (in green). We’ve given the trend-lines the same slope to show that the gold sector’s current long-term bull market is progressing at roughly the same pace as the long-term bull market that ran from the early 1960s through to 1980. Also, we’ve labeled points on the two major up-trend lines to illustrate our view that the October-2008 low can be considered to be the equivalent of the January-1970 low.
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The Next Bull Market in Precious Metals
The Street
Gold prices have popped 9.7% year to date after reaching a record intraday high of $1,264 an ounce, and the next bull market is in rare earth metals, says one analyst. James Dines, editor of The Dines Letter, uses mass psychology to identify bubbles before they burst. Although he is a self-proclaimed expert, Dines reportedly urged subscribers to buy mining companies in 2001 to take advantage of a coming bull market in gold.
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Silver Producers Enter Profitable Phase
SilverSeek
The latest quarterly (Q2, ended June 30, 2010) results from a number of silver producers confirm that they are now entering a phase of sustainable profits. We will look at several companies and try to make sense of the numbers as well as make an EPS projection for the calendar year 2010. This particular selection of companies was not meant to be a comprehensive overview of the entire group of silver producers, yet our intention was to provide a meaningful representation of it.
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‘Big Fall is Likely in Gold at a High of $1,325′
Commodity Online
Listening to Trader Tracks Editor Roger Wiegand talk about market conditions and precious metals is like listening to your favorite uncle tell stories at Thanksgiving. The difference is that Roger’s stories are a lot more likely to make you money. In this exclusive interview with The Gold Report, Roger offers up a few of his favorite gold and silver plays and some sage market advice.
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Prelude to Meltdown: An interview with Bert Dohmen
GoldSeek
When Bert Dohmen talks, smart investors listen.In 2007 when most investment analysts and economists were downplaying the developing credit market troubles, Bert warned investors that the probability was very high that the troubles would escalate into full-blown crisis and would produce a crash of historic proportions. He chronicled the developing credit crisis in the pages of his newsletter and also published a book in early 2008, Prelude to Meltdown, which provided his insightful views on the emerging crisis in depth.
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Gold Rallying to $1,500 as Soros’s Bubble Inflates
Bloomberg
Investors are accumulating enough bullion to fill Switzerland’s vaults twice over as gold’s most- accurate forecasters say the longest rally in at least nine decades has further to go no matter what the economy holds. Analysts raised their 2011 forecasts more than for any other precious metal the past two months, predicting a 10th annual advance, data compiled by Bloomberg show. The most widely held option on gold futures traded in New York is for $1,500 an ounce by December, or 18 percent more than the record $1,266.50 reached June 21.
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