Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Today’s gold session traded another all-time high as the August futures contract traded $1607.90. This truly amazing considering on July 1st (JUST 17 DAYS AGO) we traded as low as $1478.30. That’s a $129.60 rally as the European chaos and the reluctance from U.S legislators to extend the debt ceiling have turned the global economy upside down. Unbelievable! The precious metals are rapidly becoming not only a safe haven; they are becoming the world’s currency of choice. Savvier traders and investors are aware that during times of economic stress both gold and silver have historically retained their value better than most other commodities. As I thought, the European Union is a long way from being stable; the recent bank stress tests in the Euro region show that the fragility is spreading and may worsen even further.
Silver, once left for dead a few months ago is regaining momentum and settled over $40.00 per ounce for the first time since May 3rd, as the September futures contract settled at $40.34.
We gold traders are very aware of the technically overbought status of the gold market. However, this has been the case for over 6 months in my opinion. As I always say “the market is always right” and in my opinion the gold market is the true reflection of the world’s economic fragility.
MY SWING NUMBERS FOR 7/19
AUGUST GOLD
RESISTANCE # 2…………..$1616.00
RESISTANCE # 1…………..$1609.00
PIVOT…………………………$1600.00
SUPPORT # 1………………$1592.00
SUPPORT # 2………………$1584.00
VOLUME……………………..112,000
SEPTEMBER SILVER
RESISTANCE # 2…………..$41.34
RESISTANCE # 1…………..$40.85
PIVOT…………………………$40.24
SUPPORT # 1………………$39.74
SUPPORT # 2………………$39.14
VOLUME …………………….63,000
Mike Daly / Gold Specialist
PFG BEST
There is a substantial risk of loss in trading futures and options. Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
