The gold bugs index (HUI) closed at 301.15 with gold just managing to stay above the $800/oz level on Friday. What an aberration! The HUI is down to a level last seen in 2006 when gold was trading just above the $500/oz level.

Since the start of 2006 gold has gained around 60% in value with the stocks lagging behind slightly until this year when they give back about 80% of that gain to register a mere 10% gain for the same period. Its true that the dollar has rallied and the oil price has tumbled which no doubt has thrown a wet blanket over the precious metals sector, but the sell off in the mining sector has been devastating (read more…)

When gold, or whatever sector one is invested in, takes a sharp drop it shakes every investor to core. But when drops like what we have seen recently in gold happen, it is crucial to keep the big picture in mind and view these drops as healthy corrections within a major bull market.

This concept is (read more…)

In these turbulence times, gold investors can be forgiven for questioning the integrity of the bull market, but in reality nothing has changed. We still believe gold will challenge its previous high and even make a new all time high before rising towards $2000, and it is during painful pullbacks such as this that one should be buying. (Hence our multiple BUY signals recently.)

We are not alone in our bullish on gold and in David Galland’s latest article for The Casey Report, he shares the reasons why gold is still a great buy and what factors are set to propel gold prices upwards (read more…)

Agnico-Eagle Mines Ltd (AEM) Kinross Gold Corporation (KGC) and Yamana Gold Incorporated (AUY) all have similar chart patterns in that the MACD has recently experienced a golden crossover.

If we look at the chart above of Agnico-Eagle we can see that (read more…)

We bought JAN 17, 2009 $ 60.000 CALL OPTIONS on AEM (Agnico Eagle Mines) today at $5.50, and we our hereby signalling a BUY on these contracts.

The options started trading at $5.20 and shot up to $5.70, before falling back to around $5.00 at the moment. This shows just how volatile the derivatives market can be and therefore one must be prepared for this before trading in options.

Gold is currently trading at $809, which we think will be looked back at as a rock bottom bargain price, so (read more…)

Last year we had the pleasure of attending the Silver Investment Summit at the Paddington Hilton, London, England.

It was both an enjoyable and valuable experience, which we would recommend for all precious metal investors. This year the organisers are also putting on a Gold Investment Summit in additional to the annual Silver Investment Summit, on the 4th and 5th of November 2008 (read more…)

Gold made a bottom at $651 on August 16th 2007 before rallying to over $1025 by March 2008. The anniversary of that low is less than a week away and we suspect history is going to repeat itself as gold prepares for anther tremendous rally (read more…)

We are hereby signalling a BUY on gold and gold call options, as we believe the yellow metal is oversold and poised for a tremendous rally in the coming months.

We have purchased a significant position in (read more…)

So far this summer we have managed to acquire a few more gold and silver mining stocks and a few call options as per our plan to deploy our ‘opportunity cash’.

We still have maybe two or three purchases to make but then we will be in position for what we anticipate as being an exciting rally from September through to around February 2009 (read more…)

On the 24th July 2008 we made a purchase of the JAN09 Call Options at a strike price of $12.50, paying $2.25 for the contracts in Yamana Gold Incorporated (AUY)

Yamana Gold Incorporated has seen its stock battered down from around $17.00 recently to about $12.50. In our humble opinion the sell off has gone too far with Yamana’s stock price trading well below its own 200dma and the technical indicators are languishing in the over sold zone (read more…)