Excellent Buying Opportunity

[Barron]

Greece, the tin pot tail of Europe appears to wagging the economic dog of Europe at will as their inability to appoint a pro-austerity government has failed. This situation is further exasperated by France, with its newly elected 'no austerity' leader, stating that he will spend more now and not less in an attempt to boost economic activity if France. The German Chancellor, Angela Merkel, is now toast after suffering a significant blow as voters in Germany's largest state rejected her austerity policies.

Europe is fragmenting at an alarming rate with confidence being rocked on a daily basis and the Euro taking a drubbing. The main beneficiary appears to be the US Dollar, for no other reason than it is an alternative position to take.

The fall out from all this uncertainty is also taking its toll on both gold and silver prices, along with the associated producers as we watch them drift ever lower. For those of us who own these assets its hard to stomach, but for those who have yet to enter this tiny market sector or who wish to increase their exposure to it, it appears that a fabulous buying opportunity lies ahead.

Taking a quick look at the chart we can see that the 50 day moving average (dma) didn't make the cross over of the 200dma, that we were hoping for and so the pressure remains on silver prices. The drop below $30.00 that we have alluded to has now happened. We see this as at or close to a possible buying opportunity, however it could go as low as $26.00, so it could be worth the wait for slightly better prices.

Also note that the RSI has dipped below the '30' level which is usually a sign that silver is oversold and that a bounce could be on the cards. This is not always the case and it cant be relied totally, but it does suggest that the selling is overdone at this point.

In terms of actionable data we are not too keen on the mining sector at the moment as they could well be sold off should there be a general sell off in the major market sectors, a case of the baby being thrown out with the bath water. However, if we do get to see lower silver prices then there should be an opportunity in the options arena for us to take advantage of, something that we are researching in an attempt to unearth some real value.

Stay tuned for further developments.

Bob Kirtley

[Barron]

Pecunix and C-Gold are completely gold backed currencies that can be bought and sold through exchangers with funds wired to your personal account or funded to a debit card for customers.

This buying opportunity for gold likely won't last long and any members interested in buying Gold may wish to contact some of the brokers in the digital folder and shop the buy rates,

http://www.talkgold.com/forum/f472-.html

Best Regards

[Barron]

Soros Quadruples His Investment In Gold


Everyone in the precious metals/mining stock sector is looking for anything to grab onto for optimism. Notwithstanding that this type of sentiment always demarcates a bottom, and notwithstanding the fact that the basic fundamentals underpinning the precious metals - like catastrophic Government deficit spending and disastrous Central Bank negative interest rate policies - get stronger by the day, here's an excellent harbinger of a potential bottom/upturn in the metals/miners: Soros has quadrupled his exposure to gold.

This sell-off in the miners has become silly. One particular stock AUMN (which acquired ECU Silver) is now selling at a little over 20 cents per old ECU-equivalent share. At one time in 2007, ECU was over $3.30/share. This valuation implies that AUMN's silver in ground is valued at 30 cents/ounce. That is retarded. A couple years ago silver miners were selling for $1/oz in the ground. The price of silver is higher now and margins have exploded.

I don't know when this sell-off in the sector will end and the next move up will commence, but I just got off the phone with a longtime friend in NYC who told me that he just spoke to a very plugged-in "insider" (i.e. politically connected) type who told my friend that a massive QE in Europe and in the U.S. is coming and that this is the flush in precious metals that you want to use to back up the dump truck and buy because there might not be another opportunity like this going forward.

Back to Soros, I've noticed over the years that he has had good success as a market-timer in gold and mining stocks. As a matter of fact, he was the largest shareholder at one point in the predecessor company (Apex Silver) that became Golden Minerals that took over ECU. He sold Apex almost at its apex. At any rate, it is my strong belief that he uses GLD to index the price of gold for trading purposes. He's smarter than me and must know the potential Enron-type legal structure that belies the GLD trust structure. I would also bet a lot of money that Soros, given that he is a Holocaust survivor and concentration camp escapee, has accumulated a massive personal holding of physical gold.

For what it's all worth...

[Barron]

(Kitco News) - The amount of gold and silver transferred between accounts of London Bullion Market Association members fell sharply in April on both a month-on-month and year-on-year basis, the organization reported Friday.

***8220;The level of trading fell to its lowest point since the start of 2011, reflecting a number of factors which generated uncertainty in the market during April,***8221; the LBMA said. ***8220;Hedge funds reacted negatively to mixed messages about prospects for the U.S. economy by liquidating their positions during April. Demand was also affected by European counterparties reducing their risk profile as a result of the continued eurozone crisis. Confidence in the market was also weakened by general market apprehension ahead of new regulations, in particular the implementation of the Dodd Frank Act.***8221;

The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred, which essentially provides a snapshot of the trading activity.

The amount of gold transferred fell by 11.2% from March to April to a daily average of 17.9 million ounces.

Total gold transfers fell by 25% to a daily average of 2,223. The average value of the transfers declined by 12.4% to $29.6 billion.

The year-on-year statistics for gold ounces traded were even more negative, falling 20.1%. However, there was an increase of 14.3% in the number of trades, which suggested that clearers were settling significantly smaller value deals than they were this time last year, the LBMA said.

Silver ounces transferred fell by 10.2% from March to April to a daily average of 141.1 million.

The number of transfers in April decreased 22.9% to 715 per day. The value of the transfers fell to $4.45 billion.

The year-on-year data for silver show that ounces transferred daily fell by 21.3%, while the number of transfers slid 10.6%. This, combined with the fall in the price of silver from 12 months ago, combined to reduce the value of silver transferred by 40%.

[Barron]

* Investors brace for Wednesday's EU summit

* Selling accelerates as euro weakens

* Platinum prices fall even after strike news

By Josephine Mason

NEW YORK, May 22 (Reuters) - Gold traded near intraday lows o n T uesday afternoon with selling accelerating on low volumes as the euro lost further ground ahead of a much-anticipated European summit.

The pressure started on Monday after bullion failed to break through key resistance at $1,600 per ounce, sending prices below near-term technical support levels.

That selling snowballed on Tuesday afternoon in New York, sending prices below $1,570 an ounce as the euro weakened with investors betting Wednesday's meeting of European leaders would do little to tackle the region's debt crisis.

"The euro continued to sag. It's not going to make a decisive move until the EU summit," said James Steel, chief commodity analyst at HSBC.

Weaker oil prices on news of a potential deal between Iran and the U.N. nuclear watchdog also weighed on the market, still reeling from last week's sell-off to December lows.

Spot gold was down 1.44 percent at $1,569.26 an ounce at 3:30 p.m. EDT (1930 GMT). U.S. gold futures for June delivery settled 0.76 percent lower at $1,576.6, off an intraday low of $1,568 per oz.

While prices are up from the December lows revisited last week, bullion remained on a weak technical footing, trading below its 14-day moving average.

Some U.S. investors were already focusing on the long Memorial Day holiday weekend, but most were bracing for a possible recovery in the euro if the European summit in Brussels on Wednesday agrees on a pan-European bond issue aimed at raising much-needed cash to bolster Greece's banking system.

"If it (any agreement from the summit) is seen as a solution and strengthens the euro, it will be positive for gold," Steel said.

France's new president, Francois Hollande, said he wanted all options on the table to stimulate growth in Europe when the EU leaders meet.

Gold tends to trade together with the euro, so any weakness in the single currency can lead investors to cash in their bullion positions to realize a higher profit in their local currency.

The weakness in the single currency resulting from the euro zone debt crisis is for now outweighing any positive safe-haven demand.

OPTIONS DRAW

Looking at the likely course of gold prices this week, options on June COMEX futures that expire on Thursday show investors are divided on gold's chances of breaking and staying above $1,600 an ounce.

Most near-the-money open interest, positions in options contracts with strike prices close to the current futures price, is split almost evenly between calls and puts. A call contract gives the owner the right, but not the obligation, to buy the underlying commodity at a pre-determined price by a set date, and a put confers the right without obligation to sell.

OPTIONS DRAW

Looking at the likely course of gold prices this week, options on June COMEX futures that expire on Thursday show investors are divided on gold's chances of breaking and staying above $1,600 an ounce.

Most near-the-money open interest, positions in options contracts with strike prices close to the current futures price, is split almost evenly between calls and puts. A call contract gives the owner the right, but not the obligation, to buy the underlying commodity at a pre-determined price by a set date, and a put confers the right without obligation to sell.