Sunday, July 17, 2011

20110715 Weekend, 1764 "five figure gold"

Dow 12,479.73 +42.61
Nasdaq 2,789.80 +27.13
SP500 1,316.14 +7.27. Close of 1316+ is great for the bulls, though intraday strong open and weak close lifts the bear's spirits.
10-YrBond 2.91% -0.04

While some key stocks had been breaking down, headline indices have powered higher. Metals higher with gold (quietly) powering to a new high.
I had dinner with a couple who are worth $10M+. I mentioned how in 2007 I started accumulating bullion to prudently diversify. He said he has no physical precious metals. He had no interest in bullion and said he would stay in the stock market. When people like him start buying bullion, the last stage blast-off will will begin. This may be several years (or a big event) away.

Barron's Vito J. Racanelli timidly says the recent European bank stress tests were a fraud: "From a sector point of view, what's the value of a stress test that doesn't really stress the subject? For a test to be credible, it must be stressful. In the event there is a disorderly Greek debt default or even an orderly one, it's a good bet that these tests will prove less than indicative about the European banking system's overall ability to withstand the fallout."

Important numbers from Jim Sinclair's interview at King World News: "The key to all of this is $1,764 and you will go above that level, but what that does is lock in five figures on the price of gold. A move above $1,764 brings into focus prices as high as $12,000, so we are are approaching the most critical milestone in the entire gold bull market."

GLD 155.2 +0.66
SLV 38.24 +0.83
PTM 20.57 -0.05
XLE 76.86 +2.01
XLF 14.85 -0.03
VXX 23.16 -0.22

GBG 2.18 +0.04. Great Basin Gold Ltd. 52 week range 1.67 - 3.32.

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