Tuesday, April 26, 2011

Gold/Silver Continues Up - Get some Corn and Wheat!

Goombarh 55 - April 26th, 2011
Good Afternoon,

Been busy, have not sent out anything recently.  Sorry about not notifying for the Gold Precious Metals (PM) volatility yesterday and today; because it is options expiry for the month again.  Therefore sit tight with your positioning, the PM will recover.  Silver has touched $50USD and then drops 10%.  Gold reaches new heights and then drops 1%.  Comex has decreed new margin requirements:  http://www.zerohedge.com/article/cme-hikes-silver-initial-and-maintenance-margins-9; but it is to no avail, as there is still strong buying coming in with each decline.  Check the strength in the daily moves up, even as the day starts negative, in the chart following of Goldcorp.
My sense, is that there are further gains in PM ahead still and the May factor is not here yet.  Look at the trend of the GLD being supported by the SPY, so as regular markets move up, so will the precious metals.  See the following chart of GLD compared with the SPY.

What about the Gold miners, you ask?  Well, I just bought GG.ws Goldcorp warrants, as I think only the strongest of the strong leaders, they will still move up.  As for the others, such as GBG, I believe the moves will only come after strong production reports, and that is only likely this fall.  This time here is for accumulating the Great Basins and Silvermexes of this world.

As previously mentioned, I have bought DAG, the double bull agriculture ETF because there will be a wheat and corn shortage this summer.  This will serve as my cash holding until the fall metals runs start, later this summer.

Until next time,
Marco G.

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