John Reade Quotes (28 Quotes)

Base and precious metals are considerably above what we consider to be fair value - based on fundamental supply and demand factors - but events of the past two years have demonstrated that investment and speculative flows are very capable of lifting prices well beyond fundamental fair value.

The release of the COTR report tonight is likely to be the final piece of information we need to decide to sell gold,

We had a period of needed consolidation in gold ... with rallying base metals, strong silver prices and improving momentum, we can probably go higher.

Silver is benefiting from pre-positioning ahead of the expected launch of an exchange-traded fund in silver.

Gold has started 2006 in a positive manner and we suspect that this strength will continue in the near term.

Silver's recent rally appears to have been driven by intensifying speculation that the proposed ETF will soon gain approval from the SEC, although we have seen no indications on the possible timing.

We believe that gold is attempting to find a range with the recent extremes of 535 and 555 likely to confine the metal for a while.

Both platinum and rhodium remain at or near the highs for this rally and are benefiting from broader metals interest and, in the case of rhodium, apparent genuine shortages.

In an environment where mine supply is broadly static, central bank sales effectively constrained and scrap supply declining, strong physical demand is genuinely important.

I do believe that the recent run up in gold has been almost entirely driven by speculative and investment demand as jewelry demand has fallen sharply.

Gold is in search of a fresh catalyst to return it to recent highs.

I would say that when buying gold shares, additional risk is taken on compared to buying the metal or a derivative thereon.

After the rapid rally in gold over the past few months a correction is almost inevitable at some point and this could be it.

Silver has moved to the fore following the ETF news of the past week and the metal looks set to trade above 10oz in the near term.

Although we view this as a done deal, the lack of finality in the approval may be holding some investors back. We continue to believe that silver will trade higher from here.

We expect that funds held 17-18 million ounces of gross long positions as of Tuesday. If the net long position is more than this then we will become even more bearish only a release that shows that the net long positions declined from the 15 million ounces reported last week would make us positive about the short-term outlook for gold.

It seems extremely unlikely that gold doesn't trade 600 an ounce in the spot market at some time either today or this week.

We believe that investors are likely to interpret this ... as being positive for the gold market as it will raise speculation that China will increase its gold holdings.

People have realized that the dollar is important for gold but it's not the only factor and you cannot slavishly trade gold just simply because of what's happening to the dollar.

We believe the strength of the physical market is vitally important for 2006 even though gold is rising on speculative and investment buying, at some point there will be a reversal of this trend and gold will correct.

Gold and the other precious metals appear to have found support after the recent sell-off, however, we believe it is too soon to turn bullish on gold specifically.

We do not believe that this correction is over and suspect that gold will now consolidate between recent extremes of 545 and 568, with a break of 575 needed to bring back bullish sentiment.

We suspect that technical buying of gold and silver on COMEX (New York) will be triggered by a positive announcement of the silver ETF.

The outlook for most of the major gold mining companies is for static to lower production for 2006. With the new project pipeline in gold relatively empty and few major discoveries of gold made in the past decade, we do not expect this picture to change.

Gold looks set to be supported and set to move higher as we approach the anniversary of the 911 attack on the U. S. and the expectations of an attack on Iraq intensify.

The level at which physical demand emerges to support the metal will then form a base for gold to make fresh gains.

We need to find the level at which underlying physical demand will support gold. Until then, I wouldn't be comfortable with gold up here, because it's all investment and speculative money at the moment.

Of course, gold can go higher on investment and speculative demand, but there seems no clear motivation for new money to be committed to gold at this time.