Friday, May 22, 2009
The Colonel's New Gold Price Predictions
It is 5:31 AM and my Chihuahua, Loquita, just chased a deer out of the yard. I guess that proves attitude trumps size, pardner! The ole Colonel has just added a new feature to the Report. If you look below the "Miner's Corner" to your right you will find "Reader's Tips - Hot Links." Eric sent in the coolest link to the construction progress on the I-580 connecting Reno and Carson City. There are four live Web cams and I just finished watching the sun rise on the I-580 bridge over Galena (south cam). Talk about government accountability; if you see someone dogging the job, give a holler!
OK, I promised some predictions on the future price of gold today. Such things are folly but there's no fool like an old fool. This prediction business is tricky at best and I must admit that I owe the reader a beer on oil prices. If you checkout the Colonel's Beer Derby to the right (below the copper price chart), you'll see my bet that oil would see $52 before $62 on or before 5/30/09. Wednesday, the intraday trading on the July contract hit $62.26 before falling back. It happened so fast, the Colonel didn't catch it until last night. Twenty six cents blew my winning streak (4 for 5, 1 open) and I still believe we're headed south from here.
Enough whining, here are my new gold predictions:
Gold breaks $973 before the Fourth of July, 2009
Gold breaks $1050 before Christmas, 2009
Now did I just pull these numbers from where the sun don't shine? Heck no buckaroos, we've been chewing on this topic since April:
Where Does Gold Go Next? (5/18/2009)
Lower Propane Bills and More Gold in China (4/27/2009)
Who’s Got the Gold? (4/17/2009)
A Fool’s Errand (4/15/2009)
What’s up (or down) with Gold? (4/13/2009)
Gold Takes another Leg down (4/6/2009)
Of course, my bet might be worth just so much Fool's Gold!
Enough talk, let's walk the walk:
Oil is up $0.71 at $61.76 (July contract). Gold is up $5.0 to $956.2 (June contract); Silver closes on $15 at $14.710; Copper is up 0.0615 to $2.1125 (July contract); Molybdenum holds at $10.25.
The DOW is down 25 points to 8266.57; the S&P 500, down 3.44 points to 884.89. The miners are happy on a down day:
Barrick (ABX) $37.46 up 1.55%
Newmont (NEM) $46.87 up 0.54%
General Moly (Eureka Moly, LLC) (GMO) $1.73 up 2.36%
Freeport McMoran (FCX) $49.62 up 1.99% (a bellwether mining stock spanning gold, copper & molybdenum)
Steel stocks are recovering (a "tell" for General Moly):
Nucor (NUE) $39.75 up 1.30% - domestic steel manufacturing
ArcelorMittal (MT) $29.38 up 1.70% - global steel producer
POSCO (PKX) $80.92 up 0.30%- South Korean integrated steel producer
The Eureka Miner's Grubstake Portfolio is up 1.03%