Monday, May 09, 2005

Gold Shares

Last week most the better gold and silver shares closed up for the week. A good sign. Even on Friday with gold significantly down, many shares were up or just not phased a bit by gold's drop. A similar thing happened with many silver shares. Markets are not efficient since all information is not available to all market players. While there may be tons of information out there that is free, some is private property, the most valuable usually. This most valuable private information that the masses do not have could be why the shares did well last week. It may be that some of the most valuable information is being used to buy gold and silver shares by a very small group of people.

Yes, gold is at the bottom of its 6 week price range and the US Treasury and Fed bank seem to be particularly desparate. Maybe they can get gold below where it is now. If so, it is going to be awfully hard for them to do it.

By the way, I take the below as an indication of a bubble in the US real estate market. Treasure bonds and notes broke their uptrend lines last week. Therefor rising interest rates could scare the equity and real estate markets this week.

May 5 – AP: “It’s only on the drawing boards, but a developer is proposing to build the world's tallest condominium tower in downtown Miami. Leon Cohen bought the property Monday for $31.7 million and is preparing to submit plans for a 110-story tower that would be 1,200 feet tall. A companion tower of the same height would be a combination hotel-apartment building.”

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