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Peter Brimelow: Gold has bugs gasping, gloating -- but still bullish
By Peter Brimelow
MarketWatch.com
Thursday, May 13, 2010
http://www.marketwatch.com/story/gold-has-bugs-gasping-and-gloating-2010...
NEW YORK -- Gold made new highs Wednesday, and the victorious bugs think more is to come ... eventually, and maybe now.
In the latest issue of the Aden Forecast, which came in Tuesday night, Mary Anne and Pamela Aden summarized their long-standing fundamental and inflationist arguments for gold.
But they added in chart-speak: "Now that gold has broken into record high ground, above $1,218 on a close, it could jump up to $1,300 or higher, to possibly the top of the channel during the current rise. Gold's leading indicator has jumped up, and it has room to rise further. This tells us that gold is headed higher. The long-term indicator backs this up. ... It's signaling that the rise we call 'C' is still ongoing on a bigger-picture basis. That is, the rise since November 2008 is still under way, in spite of its already 73% gain from $705 to $1,220 today."
... Dispatch continues below ...
Prophecy Resource Corp. Appoints Rob McEwen to Advisory Board
Prophecy Resource Corp. (TSX.V: PCY, OTC: PCYRF) is pleased to announce the appointment of Rob McEwen to the company's Advisory Board. McEwen is a leading Canadian mining industry entrepreneur. He is the chairman and CEO of U.S. Gold Corp. and Minera Andes Inc. McEwen was the founder and former chairman and CEO of Goldcorp Inc., whose Red Lake Mine in northwestern Ontario, Canada, is considered to be the richest gold mine in the world. During his tenure at Goldcorp, McEwen transformed the company from a collection of small companies into a mining powerhouse, growing its market capitalization from $50 million to approximately $8 billion.
For Prophecy Resource Corp.'s complete statement:
http://www.prophecyresource.com/news_2010_mar11b.php
This is a change, because when gold slumped in late winter, the Adens thought the "C wave" was over. But even then they predicted that the yellow metal would rebound.
Dow Theory Letters' Richard Russell, a friend of the Adens, doesn't even bother with these details.
He says flatly: "Do not trade your gold or gold shares. The third phase for gold lies ahead. The central banks do not want to see a new high in the price of gold, and they will do anything they can to keep the price of gold down. But the primary trend of gold is more powerful than all the world's central banks taken together."
"There is nothing more powerful than an idea whose time has come. The idea -- gold is the only money that's safe from the world's clueless governments, and their obsession to escape a recession or a depression."
This is a change for Russell too -- he used to deride the claim that gold's price has been long manipulated.
Bill Murphy and his fellow radical gold bugs at his Lemetropolecafe Web site are the leading proponents of the manipulation thesis, which they blame on what they call the "Gold Cartel."
Murphy was in full cry last night (and his cry is pretty loud): "After all these years, what fun to watch gold and silver trade like real markets. For a change, there is true ebb and flow ... and a refreshing change from Gold Cartel-inflicted patterns."
"There is growing talk, which is also quite normal, about the gold ebullience ... too much froth. What these people who talk this way aren't dealing with is that the price of gold ought to be $2,300+ and would be without the price-suppression scheme. These prices are terrific but are nothing compared to what is coming down the pike."
Murphy added in his conspiratorial way: "I am not at liberty in any way to go into further detail, but I can say there are growing developments behind the scenes which are going to send the prices of gold and silver sharply higher ... and they relate directly to what [the radical gold bugs have] been saying for 11+ years!!!"
He may sound conspiratorial -- but gold is a lot higher than when I first wrote about Murphy on MarketWatch, nearly 10 years ago.
I sense somewhat less concern that the gold shares, widely regarded as a leading indicator of gold's price, have been relatively sluggish.
But let the record show that Murphy's Lemetropolecafe does supply one (short-term) cautionary note: India has just stopped importing gold -- not an unusual response to the metal's move, but sometimes a sign that it's due for a breather.
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Preliminary Feasibility Study Completed for Seabridge Gold's KSM Project
Study Reports Reserves of 30.2 Million Oz. Gold, 7 Billion Lbs. Copper,
133 Million Oz Silver, 210 Million Lbs. Molybdenum
Base Case Life of Mine Cash Operating Costs Estimated at $144/oz. Gold Produced
(Net of Base Metal Credits)
Toronto -- Seabridge Gold Inc. has announced results from a National Instrument 43-101 compliant preliminary feasibility study of its 100-percent owned KSM project in northern British Columbia, Canada. The study was prepared by Wardrop, a Tetra Tech company, a major international engineering and consulting firm.
Seabridge President and CEO Rudi Fronk says, "The study confirms that the KSM project now hosts the largest gold reserve in Canada and one of the largest in the world. KSM is projected to provide an extraordinary mine life of more than 35 years with estimated cash operating costs well below the current average of the major gold producers. Estimated capital costs are in line with those of comparable, large-scale, undeveloped gold-copper projects and KSM has the advantage of being located in a low-risk jurisdiction."
For the complete Seabridge Gold statement:
http://www.seabridgegold.net/readmore.php?newsid=283
