Is Gold Really About to Break Out?

Perennial gold bull Citi analyst Tom Fitzpatrick reportedly told King World News this past week:

We see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980. The longer gold consolidates, the more we believe it sets up the platform, like 2006/2007, for the move higher. Certainly if we start to get a move up through $1,640 to $1,650, it looks to us like the upside move is finally starting, particularly if we can push through that $1,790 level.

When the move kicks in, we think it will be a very quick move to the topside....

Follow up:

Econintersect has published recently the reason we believe gold has been in the doldrums - a falling demand. However, this is a rear view look at gold dynamics. Trends in play (such as declining demand) remain in play until another dynamic intervenes. Gold bugs generally misinterpret economic data believing that a fiat currency has the same dynamics as a backed currency.

However, markets are not predictable - and two major players with generally good track records of making money (even though they have been unlucky with precious metals) are buying. Here an excerpt from Nigam Arora at Forbes.

On August 14th, I had just sent a bulletin out to subscribers stating that our rating for gold and silver for the short-term was neutral with a negative bias. The bulletin stated that subscribers who were bullion dealers may consider maintaining less than neutral inventory and less than normal long positions. Minutes later, 13Fs started hitting. The two that generated headlines in the media were from billionaire managers John Paulson and George Soros.

Paulson purchased 4.53 million shares of the SPDR Gold Trust (GLD). Paulson also added to his holdings of NovaGold Resources (NG), maintained his position in Barrick Gold (ABX) and reduced his holdings in Gold Fields (GFI).

Soros increased his position in GLD to 884,400 shares from 319,550 shares.

Read More on the lead Quote from King World News:

The Gold Market May Stun Participants With A Move To $6,300Today Tom Fitzpatrick told King World News, “We see no reason why this gold trend cannot perform as well as the last bull market in gold between 1970 and 1980.” Fitzpatrick also stated that a replication of that move, “... will take gold to $6,300.”


More News on Precious Metals;

South African mining has some very tough questions to ask itself as to what exactly its platinum sector is going to look like when the fallout from the current violence subsides.
Global Collapse Now Accelerating As Central Banks Buy GoldKing World News has contacts all over the world that send information to the network directly from the front lines of the global economy. These are the types of things you won’t hear in the mainstream media. Today we wanted to share a couple of these important communications. Below is the first one:“I have spent 35 years working in U...

Gold & Continued Loss Of Confidence In The Financial SystemWith the recent surge in gold, silver, and the mining shares, today King World News interviewed 25 year veteran Caesar Bryan over at Gabelli & Company, which has over $31 billion under management. Here is what Ceasar had to say regarding a continued loss of confidence in the financial system: “Yesterday marked the 41st anniversary of the US coming off the gold standard, thus severing the ties of the US dollar to gold...

Investors pulled back from South African assets as deadly clashes at a platinum mine forced them to reassess the risks facing the continent's largest economy.
Lonmin dives to nine-year low as death toll spiralsShares in platinum producer Lonmin tumbled to a nine-year low today, as a dramatic escalation of the week-long wave of violence at its Marikana mine in South Africa left 36 workers dead.

In the second part of a two part series Julian Phillips looks at the risks and challenges facing gold and silver miners and how they can make themselves more attractive to investors.
A high grade gold intercept sends Balmoral shares up 20-odd percent and adds to high grade zones beyond the West zone, where a resource estimate is in the works.
Sebi is of the view that a 'safety net' provision in the IPOs could help in the government's efforts to channelise the household savings into the equity market, rather than turning into 'idle money' by going to assets like gold.
The massacre at Lonmin's Marikana platinum mine has huge implications for the country's struggling platinum mining sector. Could it spread to the gold mines too?
Michael Fowler* expects gold to finally break through the $2,000/ounce barrier into 2013 and how this should affect mining stocks. Gold Report interview.
Ben Davies - This Could Ignite The Gold Market On MondayToday Ben Davies spoke with King World News about what he believes could light a fire under the gold market on Monday. Here is what the rising star had to say: “We’re trend ready, Eric. I think this is a prescient time to be coming on the show. The market has been acquiescing over the summer months, which has been good because it gave us all a chance to enjoy the Olympics...

Expect Major Silver Price Spike As COMEX Inventories DeclineToday Greg Weldon told King World News, “The silver inventories are declining in the exchange warehouse. This is deliverable silver from futures contracts.” Weldon, Head of Weldon Financial, also warned “... changes in warehouse inventories have been a good indicator of changes in price.” Weldon has a global following of some of the wealthiest investors in the world including individuals, institutions and financial firms...


Steven Hansen

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