Precious Metals Market summary

June 16 2011

I am starting to get bullish on gold again and am slowly picking away but not rushing into anything just yet cause the HUI, XAU and TTGD are still heading lower.  This shake out could continue for another couple of days, but if you want to add a little more to the long side, it’s not a bad time to start doing so.  Getting out of your shorts positions in gold and silver ETF may not be a bad idea too.  I think we will see higher prices by the end of June and early July (at the top of the trading range), which will be a good opportunity to sell for short term traders.    

It’s a tough call on the mining and exploration companies, but the mining indexes are drifting lower has me worried, especially if it continues lower, turning up from here would be a much needed welcome.  One thing for sure is the volatile has gone up significantly in the last week.  

Why am I bullish on gold and silver right now, because the surging interest in Platinum and Palladium (see email from CME at the bottom).
I remember reading in the past that Platinum is one of a few real leading indicators for Gold.  I think fiat paper pricing of gold is a joke and the world will be shown why over the next few years.  

Silver is an important one to watch for the next 2 weeks because we have the silver contract rolling over at the end of this month.
I think we will get a nice bounce up in silver to maybe $38 to $40 just because inventory available for delivery is low and I am sure there are many people wanting to take physical delivery this month.   That’s the surprise I see happening short term, but longer term Silver could be range bound until the physical market takes over the paper market which could be any time soon given how quickly the inventory is depleting.  

Gold price in Euro and US $ is consolidating close its highs in both currencies but what I find interesting is the timing of these highs. Looking at the one year chart of Gold in Euro and US$, you will notice that gold made a temporary top in both currencies during Dec 2010. Since then, gold has powered ahead in US$ terms from March taking out December 10 highs and now consolidating at a much higher price. Gold in Euro is now just finally challenging the December 10 highs.   In percentage terms, I think gold in Euro has some catching up to do compared to Gold in US $. 

In fact as the Euro crises plays out this summer, think we can see gold in Euro go up in price and start making new highs while gold in US$ may actually do nothing and continue sideways or trend slightly down.  I am sure  the sell Euro and buy US $ trade is affecting the currency market and the price of gold in each currency.  I would be interested in looking at this chart 6 month from now and seeing how gold did in percentage terms when priced in Euro and US $.  My bet is on the Euro being the winner and having a higher percentage move up vs. the US $.  

BUY ALERT – SSL-V  Sandstorm Gold.

Accumulate over the next few days.

I noticed a breakout on volume on Monday and notified many of our readers.  I suggested buying it on any additional weakness, which never really came.  The volume is good and the price is staying above $1.15 on strong volume, this is under accumulation and should go higher in the next few weeks.   

How do I know?   Because my friend sent me the message  below from Stansberry.  

They are a well know research company and their latest pick which will be revealed June 21. Now I am not 100% sure what their pick will be, I have no way of knowing because it hasn’t been revealed yet.  But I followed the link below and listened and I am extremely confident that it is non-other than Sandstorm Gold, the same stock I have been recommending for the last 8 months around $0.80.  I know the company and its story and am very confident that Stansberry’s latest pick is SSL.  

Read below and listen to the audio clip from Stansberry’s link just below.
Then do your own due diligence and research from Sandstorm Gold’s Website, I think you will come to the same conclusion I did.  
I own a position in Sandstrom Gold SSL  from the $0.80 price range and never sold any,  I am now adding to my position.


http://www.stansberryresearch.com/pro/1106DILSANVD/EDILM609/PR

Here's the part I noticed that you might know something about:

> Because I believe this stock could be one of the most profitable
> recommendations I make over the next 10 years, I've scheduled a
> special conference call for June 21st at 5:30pm (EST) to discuss
> everything you need to know about the "The Next Royal Gold", which
> I've been discussing in this presentation.
>
> We'll go over everything we know:
>
>     /The management team, future royalty deals... the potential risks,
>     rewards, and, of course, the identity of this small company, which
>     we believe could make early shareholders an absolute fortune./
>
> Joining us on the call will be the brilliant young CEO of the company.
>
> Get this: He helped his last company grow from a $300 million firm to
> $3 billion with gains of well over 2,500%. And now he's getting ready
> to do it again with "The Next Royal Gold."
>
> Plus, it's no secret, when it comes to the resource business, the
> management team is one of the most important indicators of whether or
> not the business will succeed. As one fellow says, "investing in a
> particular junior is essentially investing in its people."
>
> I believe you're going to be floored by the information the CEO
> reveals, and there will be little doubt in your mind of the company's
> massive potential.
>
> In addition to the CEO, I've also invited – John Doody – one of the
> top gold analysts in the world to join us.