November 17, 2009
Featured Trades: (BAC), (GOLD)
2) Gold punched through to a new all time high today of $1,137/ounce. Occasionally I hit the nail on the head so precisely, it’s worth a replay. So here is my September 10, 2009 story, which turned out to be the day that it was off to the races for the barbaric relic. For the link, click here . Yes, I know that a broken clock is right twice a day, that if you fire buckshot long enough you will eventually hit a barn, and even a blind man finally pins the tail on the donkey, but look at the chart of the yellow metal’s move since then.
‘The precious metals markets were stunned with Barrick Gold’s (ABX) announcement that it will float a $3 billion public offering to retire its gold hedges in the futures markets. This means that the world’s largest producer is cashing in its downside protection and gearing itself for a ballistic move up in the price of the barbaric relic. The timing of the announcement, the day that the yellow metal broke $1,000 for the first time since February, couldn’t have been more auspicious. I have been a huge fan of Peter Munk’s ABX all year, cajoling readers into the stock at $27 in January before its 56% run (click here for report ) . South Africa’s largest gold miner, AngloGold Ashanti’s CEO, Mark Cutifani, says his company put its money where its mouth is, taking off its hedges some time ago. ‘People are doing what they have been doing for 5,000 years, and that is buying gold as the only hard currency,’ opines Cutifani. In the meantime, the Street Tracks gold ETF (GLD) announced that it has $34 billion of gold holdings, making it the largest ETF of all, and the fifth largest owner of gold in the world after four central banks. If you want to buy gold bullion or coins for the tightest spread over spot, check out Millennium Metals by clicking here.’
‘ The oil era will end in 30 years, as it is replaced by alternatives, offshore, and tar sands,’ said Ahmed Zaki Yamani, the former Saudi oil minister, who invited me on his private jet for a trip to the kingdom so I could conduct an exclusive interview during the seventies.