I agree that that is a very accurate explanation of the situation and with Au up even further overnight CTO does look one of the best undervalued gold plays going around.
By the way The Privateer wrote over the weekend that Gold has in fact hit new post 2000 bull market highs if measured against the "trade weighted" US Dollar index.
He goes on to write "we run a daily series of charts which show the ratio between the $US Gold price and the USDX. This ratio is derived simply by dividing the spot future Gold price close by the spot future close on the USXD and multiplying the result by 100.
Thus, on September 7, 2007 spot future Gold closed at $US 703.20 while the USDX closed at 79.91. Dividing the first number by the second gives a result of 8.79989. Multiplying this by 100 gives a ratio for our purposes of 879.99."
Thus this morning's effort can go on to be seen as further confirmation of THIS fact.
Hang in there indeed!
CTO Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
