Gold as a “Go To” Asset Class

From an HRA SD Alert to former Gold Mining Stock Report subscribers
by David Coffin

We believe there is room for more gold price gain, near term.   A “true” gold market in which the yellow metal is being treated as an asset class in its own right is building around the uncertainties in other markets.  That is different from recent warehousing cycles when gold moved most strongly during the final up stage of a resource/economic cycle.  This time around gold is being treated as a market and currency hedge, not as a goody bag being handed out at the end of a party. …

World’s Best Investors Bet Big on “Utter Nonsense”

“Maybe [gold] will reach $1,100 or so but $1,500 or $2,000 is nonsense.”

That’s what Nouriel Roubini said a few days ago at the Inside Commodities Conference in New York.

The comments from the economist credited with foreseeing the banking crisis were aimed squarely at investing legend Jim Rogers. According to reports, Roubini specifically referred to Rogers’ call for $2000 gold as “utter nonsense.”

Since then, gold has continued to set new highs and is attracting a lot more attention from some of the best investors in the world.

The Day Gold’s Fate was Sealed

Back in March, when the S&P was sliding…

Two Forces Pushing Gold Higher

When gold broke out of a triangle formation in early September, a technical buying signal was generated. I discussed this bullish signal in my Money and Markets column and told readers that a move to new all-time highs had probably begun. Hence, I strongly recommended gold.

A few weeks later gold gave another buying signal. This one was even more important than the first, because gold had entered new high ground.

As you can see on the weekly chart below, gold broke out of a huge consolidation pattern that lasted from March 2008 until October 2009. This signal was telling us that the…

Commodity Companies Index (CCI) Up 214% YTD!

Up until now investors, analysts and newsletter writers have relied on the price performance of the commodities themselves (such as gold, silver, crude oil, etc.), the Reuters CRB Commodity Index or the HUI, XAU, GDM or CDNX indices to determine the health, performance and trends in commodities.

Fortunately, for all concerned, a new index has been introduced that provides a much more all-encompassing mix of companies associated with a wide variety of commodity-related products. It is called the Commodity Companies Index (CCI).

Unlike the large-cap centric HUI, XAU and GDM indices and the nano-cap centric and less commodity-oriented CDNX index, the CCI…

Volumetrics

From the November 2009 HRA Journal
David Coffin & Eric Coffin, HRA Advisories

India’s central bank taking 200 tonnes (6.4 million oz) of gold from the IMF in an off market trade has certainly lit a fire under the yellow metal.  While a trade of that nature was anticipated, India, which is about the savviest of commercial gold players, was not atop the expected buyers’ list.  Given the greenback was steady and that gold’s chart went near vertical when the overnight rumor became official, it is likely that the big long position that came into the market forced some covering on the short…