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| Reference Material |
| Why Gold? (Part 2)
By Antonio Anciaco October 30, 2006 The spot price of gold broke through the downtrending resistance line at $601-$602 last night in New York Comex trading. The price reached an intra-day high of $611 and absorbed profit taking to close at $603-$604.You can refer to the charts of physical gold and the gold stock indices HUI and XAU in the link below: An important detail is that the HUI index of unhedged gold stocks has broken resistance earlier than the metal which is the customary event that heralds a new rally in the metal itself. What does one who is interested to ride the gold train do? 1) Be patient and see where the rally goes. I would expect he price to hit resistance at $640 and fall back. What is important is that the price does not fall below $600 again. 2) If gold holds above $600 and starts to rise again after the retreat from $640 or any price up there, that would be the virtual confirmation of a new longer-term upleg. If anyone wants to board the train, this would be the time. http://www.safehaven.com/article-6200.htm What does one do with gold coins or small ingots? That's not my expertise. Presumably he would want to bury it in his backyard and tell no one.***** |