Jason Hamlin

Four Major Developments Gold Investors Should Watch

How insincere to paraphrase and leave out important context. Do you work for Fox News or something?

COMEX Commercial Traders Have Taken the Largest Net Short Position Against Gold & Silver Ever on Record...

...it is interesting to note that the commercial net short position increase was actually less than the increase in total open interest. In other words, despite taking record short positions against gold, they were unable to absorb all of the buying pressure. This is further evidenced by the fact that gold has held onto recent gains and continues hovering around the $1,000 mark.


On Sep 15 04:36 PM User 377624 wrote:

> "COMEX Commercial Traders Have Taken the Largest Net Short Position
> Against Gold & Silver Ever on Record ... While this news is usually
> very bearish ... My takeaway ... is that the news is bullish..."
>
>
> Who are you trying to convince?

Gold: The Moriarty Warning

Any good analyst will caution investors after a significant and sustained move to the upside. I don't view Moriarity as a particularly worthwhile indicator of the future direction of the gold price. He's just advising taking some profits off the table, which is a safe move.

I don't agree that with the notion that gold can't continue climbing higher at this juncture and I don't think great caution is warranted.

The last two major uplegs both began in September, both lasted just under 2 years and both put in gains of around 70% (Sept 04 - May 06 and Sept 06 - March 08).

The current upleg started in November of 08, is less than a year old and is only up 39% thus far. Furthermore, the current move is coming off a 6-month consolidation around the $950 level, which suggests it should have the legs to continue higher. About 30% higher if history is any indicator.

Not only the technical picture points higher, but the fundamentals are a perfect storm for higher prices as well. China is buying and encouraging their citizens to do the same, Russia is buying, central banks have become net buyers and Indian investors are making up for slouching jewelry demand with new ETF demand. More and more investors are also requesting physical delivery, which is hurting the ability of paper shorts to manipulate. All of this against the back drop of record deficit spending and a crashing dollar and you have the right ingredients for much more upside.

My prediction is that while it is always prudent to take some profits off the table, Moriarity and others are way too early to be talking about any significant correction. While small pullbacks will happen along the way, I think gold will reach $1,250 before any meaningful correction/consolidation.

Four Major Developments Gold Investors Should Watch

I believe you and I regularly check gold priced in several currencies.

This article focuses on relatively new developments in the gold market. The dollar is the obvious key driver of the advancing gold price, so I didn't feel the need to re-hash that point.

Cheers


On Sep 15 08:21 AM chap08 wrote:

> You could delete your 4 items and replace them with one: the dollar.
> If you don't believe me, take a look at the gold price in a range
> of other currencies.

Four Major Developments Gold Investors Should Watch

This is simply not true axelrod. The vast majority of investors have little or no gold in their portfolios. Walk around the streets and ask Joe public if they know how to invest in gold, what the gold price is or why owning gold is important. You will get blank stares.

If/when there is a rush into gold, it will overwhelm the relatively tiny market and push prices much higher.


On Sep 15 09:15 AM axelrod608 wrote:

> I've often heard that the time to buy anything was when there were
> no buyers left and the time to sell anything was when everyone was
> buying. These days every cabbie, every shoeshine boy and every waitress
> is giving unsolicited advice to "buy gold". That may not constitute
> fundamental research, but it has been on my mind. I don't have an
> answer other than to hedge every dollar I have in gold.

Four Major Developments Gold Investors Should Watch

Exit strategy? What is that?

I use stop limits to protect capital and I diversify my portfolio. This mitigates my risk.


On Sep 15 08:32 AM Jordan Lindsey wrote:

> As a trader my primary concern is risk. You seem to only be concerned
> with the possible reward side. What happens if your magical $1,000
> price level does not hold? What is your exit strategy? You do have
> an exit strategy right Jason?

Leveraging Up on Precious Metals Ahead of Fed Meeting

User52095 - tranquilo bro. this article is one person's opinion and it is argued in a comprehensive and well-researched way. to suggest that he shouldn't be publishing on SA just because you disagree or don't like it is childish. grow up and stop attacking authors that you don't like. if you want "expert opinion," go watch jim cramer.

i believe we will see precious metals rebound in the next month, but the shorts are still holding the market back (as ted butler suggests). too bad the SEC doesn't outlaw naked shorting of all stocks (including miners) instead of just their investment bank buddies. crooks.

slw is buy at these levels, although we might see a quick dip below $10 in the coming days. it is the hardest thing to do, but investors would be wise to buy into the current correction. this is truly a fire sale and the precious metals market will prove, as it always does, to be resilient enough to bounce back strongly from these sell-offs.