Gold Buying
Opportunity
Special
Alert Tuesday July 6, 2004 2PM EDT
Peter Grandich
July 7, 2004
U.S. gold investors
returned from holidays only to find another "stealth-like"
attack on the Comex. While the press will always get somebody
to give some sort of explanation, yours truly saw no fundamental
reason for gold to suddenly sell-off. Because the ISM
data was released shortly before gold decided to fall off the
cliff, the natural tendency is to think it had something to do
with the decline.
Trust me, it didn't!
Gold has been completing an intermediate bottom in its secular
bull rise that began a couple of years ago. The environment for
it hasn't been this good for over 20 years. Geopolitical events
now have a lasting and supportive effect. People are realizing
that the western world has not faced an enemy like it does now.
Past enemies wanted to defeat us, but they didn't want the world
to blow up in exchange for their victory. The enemy now not only
doesn't care about the present world, but also actually thinks
its god will reward them for destroying it.
And while the supply versus demand scenario is more attractive
for base metals, the lack of aggressive gold exploration for
years, combined with the market's ability now to absorb central
bank selling (and the threat of it), gives gold a strong fundamental
argument. I especially like the way the Euro is trading and believe
it can break above 125, a level I think can accelerate U.S. dollar
selling overall and benefit the metals.
Throw in oil simply correcting recent gains and likely heading
to $50, and we have all the makings of a run to $500 on gold.
Today's retreat is strictly a buying opportunity.
July 6, 2004
Peter Grandich
Grandich
Publications
P.O. Box 243
Perrineville, NJ 08535
phone: 732-642-3992
email: Peter@Grandich.com
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