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Friday, June 08, 2007

Charts for Friday

Long-term bond yields in the U.S. finally moved above 5% with the 30-year bond now yielding close to 5.30% yesterday. This has broken some major trend lines, and sowed panic among invetors yesterday. Many of them moved out of speculative investments (gold), and you can't really fault that outlook, because if you can get 5.3% on a T-bill, you might be tempted to park your money and go fishing. Better yet, you can go park your money in the New Zealand dollar, which now yields 8%.

But ah ... the things driving that yield -- fears of inflation and a weaker US dollar -- tend to drive gold and silver higher over time. I think this is the wrong time to get out of gold. Indeed, I think it's a good time to get in.

That said, let's look at some weekly charts ...

And now time for a scary chart -- a daily chart of the Uranium Participation Corp., which is a Uranium ETF (sort of) ...
I don't know what this is telling us, but I'll be very interested to see the results of the next uranium auction.

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