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cbwang888 (25.84)

Gold @ new high in euro (€1080)

Recs

5

May 23, 2011 – Comments (2) | RELATED TICKERS: GLD , UUP , GDX


Silver held up pretty well given the weakness across all base metals.

 

Dollar is short term overbought and commodities/energy are short term oversold. Speculations on China may hit the speed bump on their growth.

 

Gold miner stocks are looking very attractive here and I would buy GDX @ $54 ~ $55. I like ABX @ $45, oversold if you follow the chart.

 

I'm also looking to add more smaller players like BAA, RIC and JAG for long term at current price. The debt issues are not going to get resolved and soon all eyes will be on US debts when August debt limit raised or Treasury goes defaults.  

2 Comments – Post Your Own

#1) On May 23, 2011 at 1:48 PM, cbwang888 (25.84) wrote:

Even though China economy may be growing at slower pace, I believe the stockpiling of base metals will continue, though may at the slower pace to get a better buying price.

Inflation is the major concern in China and they have learnt that their savings in US Treasury Bonds are worth only 20% of the original value (when valued in gold).

The only way China can control inflation is to own huge stockpiles/reserves of durable commodities themselves. 

 

 

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#2) On May 23, 2011 at 2:09 PM, cbwang888 (25.84) wrote:

Headlines on slower China factory output

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