"The history of Eureka lies in its future." - Lambert Molinelli, 1878

DISCLOSURE

The author/editor of the Eureka Miner owns common shares of local mining stocks, McEwen Mining (MUX) and General Moly (GMO). Please do your own research, markets can turn on you faster than a feral cat.

Friday, May 22, 2009

The Colonel's New Gold Price Predictions




Morning Miners!

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%

Cheers,

Colonel Possum

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