THE PAINTED PIG THURSDAY MORNING THUNDER

THE PIG  SAYS....HAH !!!  "MARKETS" ......
WHO CAN FIGURE EM' OUT. BOTH GCR.V AND GAP.V CAME OUT WITH A STELLAR NEWS RELEASE ON WEDNESDAY MORNING. IN PHARMAGAP'S CASE, THE SECOND IN AS MANY WEEKS AND STILL A SELL OFF.......????....SOMETIMES THE WORLD MAKES NO SENSE.

WHO OF US OUT THERE CAN REALLY SAY THEY KNOW WHATS ON THE MIND OF THE RETAIL INVESTOR ? THE PIG LIKES TO USE THE TERM "LEMMING" FOR MOST OF THEM. A NARROW MINDED, SHORT SIGHTED, EASILY PANICED BEING THAT RUNS EN MASSE OVER THE CLIFF AT THE FIRST SIGN OF TROUBLE. CONFUSING TO SAY THE LEAST, BUT THE PIG WILL SOLDIER ON. A COUPLE OF PICKS TONIGHT, ONE NEW AND ONE PREVIOUS PICK, AND A COUPLE OF GOOD, CONTREVERSIAL ARTICLES TO STOKE THE FIRES OF YOUR MIND TODAY.

LETS HAVE A GREAT DAY, RUMOURS AROUND WE "MAY" SEE AN UP DAY TODAY.
DON'T TELL THE LEMMINGS.

ON WITH THE SHOW.........

GXM.V...PATIENCE OR PASSING. THIS PREVIOUS PIG PICK SCORED HIGH ON THE SCANNER TONIGHT. SINCE THE FIRST RECCO' IN APRIL ITS SEEN SOME IMPATIENT SELLERS AND HAS SINCE REBOUNDED. IS THERE SOMEHTING FINALLY ON THE HORIZON ? THE PIGS NOT SURE, BUT REACCUMULATION USUALLY MEANS A NEW CROP OF CASH INCOMING. SO THE QUESTION IS....WHY WOULD YOU PUT MONEY INTO A DEAD SITUATION ? MAYBE SOMEONE KNOWS SOMETHING WE DON'T.......

IAX.V...SECOND HIGH SCANNER ON THE NIGHT AND A REAL ODDITY. THE PIG LIKES GROUND FLOOR OPPORTUNITY, AND THIS SEEMS TO BE ONE. SOME BIGGER NUMBERS OUT ON THE MOVING AVERAGES CHANGEOVER SIDE AND SENTIMENT CHANGES. NO REAL STORY HERE ...."YET"....IT SEEMS....BUT WITH A NICE LOW FLOAT AND ADD IN SOME LIQUIDITY, THERE MAY BE A STORY. THE PIG LIKES A GOOD SUCCESS STORY...

James Turk Predicts
$1,800 to $2,000 Gold this Year
and $8,000 Gold by 2015

LONDON - In the closing keynote on the first full day of the 2010 World Mining Investment Conference in London yesterday, James Turk, founder of Gold Money, opened by reaffirming his prediction made at the end of last year that gold could reach $8,000 an ounce by 2015, based on past patterns of surges in the gold price. What may be even more encouraging for the general investor is that his forecast also suggests that the Dow Jones Index would rise to similar levels as the world finally pulls out of recession, with the gold price matching the Dow index number. When asked at the end of his talk where he felt the gold price would be at the end of the current year, he reckoned around $1,800 to $2,000 – and also predicted that the more volatile silver price would achieve a level of $30 this year.


Turk bases his forecasts very much on past performance – but even as the prediction may seem extreme, to some, the sting in the tail is that he does not see these levels in the gold price, or Dow, as suggesting real increases in wealth. Rather, such an increase would serve only as wealth preservation as the purchasing power of most currencies is devalued in a hyper-inflationary environment due to the huge volumes of fiat money being pumped into the market by governments in an attempt to stave off global recession. He affirmed that he felt it was folly for governments to think they could spend their way out of trouble.


Turk pointed out that over the past years gold has been rising at double digit percentage levels against all major currencies – or perhaps rather that all major currencies have been devaluing against gold which he feels represents the only real money. Silver too has risen on average against all the currencies in double digit annual percentage increases, but with rather more volatility, as proof of this Turk points out the sharp fall silver experienced in 2008 and its subsequent strong recovery in 2009.

He calls gold the ‘canary in the monetary coal mine’ and he agrees with GATA that governments and Central Banks have been trying to limit gold price increases over the years, in the same way that they try to control currency fluctuations. Turk illustrated his talk with charts and tables illustrating his key points and makes an impressive, but overall worrying, case for gold and silver given that despite the big increases he sees ahead, all he feels this will do is protect asset values, rather than increase them in real terms, which is really bad news for savers!  In other points during the presentation, Turk pointed out that there may be gains to be made in gold stocks as his charts show that the gold stock XAU index looks cheap, but cautions that gold mining stocks are not gold, but investments which brings both upside and downside risk into play in relation to the metal itself.


He also showed that over 60 years, the oil price which has risen sharply in all major currencies, has effectively been absolutely flat in terms of both gold and silver, apart from very minor short term fluctuations, as an indicator of the precious metals’ wealth preservation characteristics.


Gold bulls claim price could double to $3,000 in five years


Fears that American, British and other governments intend to inflate their way off the rocks of excessive debt prompted record inflows into gold this week.

By Ian Cowie

Published: 7:35AM BST 20 May 2010

Now some fund managers claim the price could more than double to $3,000 (£2,080) per ounce within five years. Heavily indebted governments throughout the developed world are struggling to fill deficits of black-hole dimensions in public finances by imposing spending cuts and tax rises. Both are expected in Britain's emergency Budget on June 22 and neither will be popular.


Investors buy gold, as fears of inflation rise


Gold price could hit $1,500But keeping interest rates lower than inflation and letting the currency take the strain is another way to reduce the real value of debt. You can see why politicians may feel that is the ''least worst'' option. Stealthily robbing savers by eroding the purchasing power of money is less likely to cause riots in the streets than spending cuts, because inflation tends to hit older people hardest while unemployment hits the young.  Governments can devalue their own currencies, but it is harder for them to make more gold. That fact helped prompt record inflows of $484m (£336m) into gold exchange-traded commodities this week, while gold trading volumes peaked at $2.1bn (£1.45bn). However, the precious metal is not a one-way bet and it slipped back below $1,200 (£830) on Thursday as some investors took profits amid anxiety about an unsustainable bubble in the gold price. Graham French, manager of the M & G Global Basics Fund, was undeterred. He said: "In a scenario of rising sovereign risk, where government finances are hugely overstretched and central banks have been systematically devaluing paper money, gold's value as a safe haven and a stable physical currency can only increase over the medium term. "Against this backdrop, the gold price could go much higher than these already elevated levels. It wouldn't be too far fetched to see it rising above $2,000, or even up to $3,000."


Mr French's strategy is based on the belief that things that emerging markets sell will fall in price over the next five years, while things that emerging markets buy will rise in price. The explanation is that demand from the heavily indebted developed world may remain subdued, while demand from largely debt-free consumers in emerging markets will rise. Rupert Robinson, chief executive of Schroders Private Bank, said: "Gold is setting record highs in almost every currency, despite headwinds including a strong dollar and monetary tightening in India and China, the main end markets for gold. Today's economic environment makes gold a must in any client portfolio. "Interest rates are at historically low levels; central banks are bailing out the system; we have seen a huge amount of quantitative easing; currencies being debased and governments around the world are short of money.


Nothing goes up in a straight line, indeed there are signs that gold may be becoming over-owned and too fashionable in the short term, but I think that over the long term gold is a good asset to hang on to. It could easily reach $2,000 per ounce within the next five years," Mr Robinson said. Richard Davis, of BlackRock's Natural Resources team, added: "Gold always does well in times of uncertainty, and this week is no exception. Lingering concerns over the Greek bail-out, uncertainty over global economic growth, and an inconclusive election result in Britain have all created nervousness in stock markets, and risk-averse investors are looking to gold as a store of value. The fact that gold bullion is a real asset, which does not depend for its value on any company or government, makes it compelling as a 'safe haven' investment. Gold bullion is particularly popular in Asia and the Middle East and investors in these regions have continued to pile money into the asset class.

"It is worth noting that, adjusted for inflation, gold is still some way off its all-time high of $850 per ounce in 1980, equivalent to more than $2,200 in today's terms." Adrian Ash, of BullionVault.com, said: "Inflation alone is not the driver. It's real interest rates that matter, because if cash is beating inflation, no one needs gold. Whereas when cash loses value, year after year – and if the major productive alternatives, such as bonds, shares and property, also fail investors as well – then gold really comes into its own.
"Cash is being actively devalued – and not just in Britain; the Eurozone crisis is only the latest prime mover. Underlying the decade-long upturn in gold is a repeated attack on the virtue of savings," Mr Ash said.
Gold's fundamental appeal remains that it is a store of value that is largely immune to government intervention.


Mr French observed: "The great Irish dramatist George Bernard Shaw said: 'You have to choose between trusting the natural stability of gold or the natural stability and intelligence of members of the government. And with due respect to these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.' I have to say, I'm with Bernard Shaw on this."