Dear readers, some of the Gold and Silver mining companies have reported their 2005 – Q4 results recently, I have made a few review posts about the major interesting stories. Amazingly the picture is very simple: as the price of gold goes higher the heavily hedged miners actually report declining profits. While Un hedged or little hedged companies report higher profits. See the reports here:
I did not see any news regarding the gold and silver market. I continue to see way too much disinformation and the usual terror, dollar, bird flu pseudo explanations. If you want to have at list a clue of how the gold market is working ignore all the usual professional analysts' explanation and concentrate on the price action.
It is very silly to think that a bunch of terrorists can control the price of gold.
Gold is currently trading just between the 61.8% and 50% Fibonacci retracement levels (the short lines - pink set). Silver action is exactly the same like gold.
Click on the chart below to enlarge