THE VALUE VIEW GOLD REPORT
Ned W. Schmidt,CFA,CEBS
First, a note about next weekend. I am going to be with Older Daughter in Wisconsin. On Saturday, we plan on being at Lake Geneva or some other such location. This time will be the first full week we have had alone together in a long, long time. For that reason, no letter next weekend. If some earth shaking event develops, I will make an attempt to
send an email.
Another exciting week in the markets.
Over the past few weeks market
strategists and taxi cab drivers have
decided that all the FOMC needs to do is
raise rates 25 basis points at the end of
the month and inflation will be dead
forever. In short, that thinking is cow
droppings, as talked about in the June
letter which will be out Monday. As an
added bonus, the dollar will be saved.
However, ignored in all the discussion
was 7.9935 Chinese renminbi to the
dollar. Last week the Chinese currency
broke to a new important high. Sorry
dollar bulls, the trend is still down.
Basic Trend: $Gold Up. Investors
should focus on Buy signals. Strategy:
Positive, per Investment Policy of Oct
2004. Investment Policy: Looking for
buy signals, and holding long-term core
position.
Friday was an interesting day to watch.
The equity markets had just staged a
two-day bear market rally, with Thursday
up big time. On Friday about 9:30am
Gold sold off as equity markets opened,
and then stabilized. In the last hour of the
day on Friday selling came into Gold
again, sending it down about $7 before it
found traction and moved back up. No
one in their right mind would sell into the
Gold market on Friday afternoon near the
end of trading. That has to be the most
illiquid period of the whole week. Only
someone that HAD to sell would do so.
As is written in the June letter, the impact
of leverage funds has just about run its
course. That Gold moved back up on
Friday after that late selling suggests that
real demand is there and may soon again
dominate. Leveraged fund impact is
about done.
Have put in a down trend line in short-term
Gold chart. Gold will attempt to
walk through that line. In doing so it will
give us the first indication of the bottom
of the trading range. The worst of the
fund related selling is past, and the
summer pattern should now dominate.
Basic Trend: $Silver: Up Investors
should focus on Buy signals. Strategy:
Positive, Per Investment Policy of
October 2004 Investment Policy:
Emphasize Buys
Silver deeply over sold. With the
consolidation taking $5 off the price,
much of it is done. From these levels
Silver should start building that lateral
pattern that will ultimately be the base
for higher prices in fall.
Recommendations: Hold existing Gold
and Silver positions for higher prices, and
further profits! Add to positions on buy
signals.
Ned W. Schmidt, CFA,CEBS
Click to email me: nwschmidt@earthlink.net
June 18, 2006
Ned W. Schmidt,CFA,CEBS is publisher of THE VALUE VIEW GOLD REPORT. That report now
includes a weekly message, TRADING THOUGHTS, to help investors identify timely points for buying
Gold and Silver. You can join him for the Gold Super Cycle at
http://home.att.net/~nwschmidt/Order_Gold_EMonthlyTT.html His monumental report, "$1,265
GOLD", which has now been read in 12 countries, has 255 pages and 98 graphs, is available at
www.amazon.com or from the author. Ned welcomes your comments and questions. His mission in life is
to rescue investors from the abyss of financial assets and the coming collapse of the U.S. dollar. He can
be contacted at nwschmidt@earthlink.net.
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