The Gold Economy

Silver had a big move this week as did gold, but after taking a look more closely I have some doubts as to whether it can maintain it’s gains. If you look at a daily chart these indicators are really not in an area where a big move starts or even continues from.

• MACD is under it’s signal line
• ADX has peaked and is declining
• ATR is at it’s highs

The chart below (click to enlarge) shows it’s fast move to previous highs. That sometimes is not such a good thing if the move is too fast. We’ll know by

Gold and silver forge on to new highs and all is looking well for the next up leg in this multi-year bull market. Yet all was not looking so sure some months back when the crash of the credit crunch was still echoing in people’s ears, talk of a double dip recession was rife and the tower of bail-out debt threatened to tumble down on many a government.

Yet, amidst all this fear, one technical indicator issued a long term buy signal for precious metals back in February 2010. It is an indicator based on the

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Question-and-Answer Session

Operator

Absolutely. Thank you. (Operator Instructions) And our first question comes from the line of John Bridges with JP Morgan. Please go ahead.

John Bridges – JP Morgan

Good morning, Aaron, Jamie, everybody. So, it sounds as if we’ve go to just of our old financial model from four or five years ago when we had a similar system to the IFRS, I guess. And quickly on the Veladero, what sort of production profile should we expect with that one going forward, it seems to be quite volatile?

Peter Kinver

Maybe I can answer that, John. Veladero has had a very good year