Gold & Long Term T-Bond Trends

Gold & the Dow Jones Industrial Average

Underground investor David Fessler, writing at Investment U, says the four best hedges against inflation are gold, inflation-adjusted Treasuries, energy stocks and commodities such as wheat, metals, cattle and fertilizer.

1) Gold

David recommends investors hold 5% of their portfolio in gold to hedge against a declining dollar and an inflationary economy. He says investors can easily buy gold through the SPDR Gold Trust ETF (NYSE:GLD). This tracks the price performance of gold bullion without the hassles of finding and storing the physical metal.

2) Inflation-Adjusted Treasuries

Also known as TIPS, these government bonds are actually guaranteed to beat inflation. That’s because the bond principal and the amount of interest paid increase in step with the Consumer price index. David says the easiest way to buy TIPS is through the iShares Barclays TIPS Bond Fund (AMEX:TIP). This year Treasuries have lost 3.9%. TIPS have returned 3.6%.

Full Story:  http://www.contrarianprofits.com

TORONTO (miningweekly.com) – Toronto-based gold-miner Kinross Gold has bought 2,19-million units – each comprising one share and one half of a purchase warrant – in exploration firm Millrock Resources.

Kinross bought the units in a private placement, for a total of C$350 000, Millrock reported.

The placement will give Kinross a 6,46% interest in the company.

Free Trend Analysis of *KGC* sent to your in-box

“Millrock will use these funds to carry out reconnaissance surveys and property acquisitions in a particular area of mutual interest in Alaska, a state in which Kinross is a premier gold producer and in which Millrock has substantial expertise in the discovery and exploration of gold deposits,” said CEO Gregory Beischer.

TSX Venture Exchange-listed Millrock is focused on exploring for gold deposits in Alaska and copper/gold porphyries in Arizona.

The price of GOLD is poised to break through $1,000 an ounce next week and could reach $1,300 before a price consolidation. If we break $1,000 we could run fast and furious! Gold is considered to be the universal currency and when people start to question the true buying power of paper currencies the shiny metal is where they like to go.

August gold closed sharply higher on Friday as it extends this month’s rally. Fears over inflation have lead to some investors moving cash into hard assets and precious metals as a hedge against inflation. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends the rally off April’s low, February’s high crossing at 1008.90 is the next upside target. Closes below the 20-day moving average crossing at 931.70 would confirm that a short-term top has been posted.
First resistance is today’s high crossing at 982.00. Second resistance is February’s high crossing at 1008.90. First support is the 10-day moving average crossing at 948.90. Second support is the 20-day moving average crossing at 931.70.

Today’s “Trade Triangles”