Current Market Rates Per Ounce September 10, 2010 1:24:27 PM PST USD $  CAD $ Gold (AU): 1,246.00  1,289.86 Silver (AG): 19.83  20.53 Platinum (PT): 1,536.50  1,590.58 Palladium (PD): 516.25  534.42 USD-CAD Exchange Rate: 1.035 J&M Coin & Jewellery Ltd. 127 East Broadway Vancouver, BC, V5T 1W1, Canada Tel: (604) 876-7181 Toll Free Ordering: 1-888-244-9999 Fax: (604) 876-1518 e-Mail: jandm@jandm.com Web: www.jandm.com

Gold -- A Hard Look into 2010 By John Winston December 23, 2009 Gold bottoms with a November/December spike at the $700 area right when interest rates bottom, and takes off on a rally to $1007 in March. The gold chart displays the massive $540 rally that has transpired over the past 13 months. Not only has gold led all asset classes from the depths of the debt hole but has been the clear winner of the decade in mounting a rally from $251 to $1227 at the peak. So strong has the rally been that the 200-day moving average was only tested once, during the spring lows of April and May. Even the 50-day moving average went from September to December over 100 days without being revisited until the past few days. The lows for 2009 were the $865 to $870 area in gold. That pullback low was to exactly the same price as the peak of January 21, 1980, when gold touched $875. From that low in spring, gold rallied away from the 200-day average until it reached a point where price was $250 dollars above the average when it peaked at $1227. Outlook for Correction There are three probable places for a price low during this pullback. First is the 50-day moving average at the current price area of $1110. This is one potential price zone where a rally might re-establish itself. Should gold bottom in the $1080-$1090 area and solidly move above the 50-day average, gold would stage an assault on the upper trend line where a major channel in which price has bounced off the channel three times over the past 13 months. The second area is the horizontal channel line drawn off the 2007 and 2008 top. We can see how this area points to the price area where gold broke over $1000 to finally rally into higher triple digit prices. This pullback or test of the breakout area would give us a range of about $1020-$1040 in price. The final area is where the bottom channel line, the small blue downtrend line drawn off the March and June peaks and the 200-day moving average converge in price. That would put the price range at about the $950-$990 area and will be the most SOLID PRICE SUPPORT area for gold in which gold would still maintain its upward momentum within this channel. Closes below the $930-$950 area during 2010 would suggest that the current credit contraction cycle has the potential to bring down the house one more time like it did in 2008. We expect gold will bottom at one of these three areas between now and mid-January and a rally back up to test or exceed the upper trend channel should develop going into mid-winter. Depending on the strength of the next leg up will determine how long the rally is to last. Seasonal charts show that corrections usually develop in the mid-February to early-March timeframe on average. We suspect a spring peak will lead to what it usually does, a July/August low. Should gold next rally fail to make new highs and then turn lower under the 50-day average or below the low of this current pullback, the potential to test the lower levels we have listed above will be in play. Going into 2010, the gold market seems to have had only one nemesis, DEBT DEFAULT. The 2007 high at $1033 occurred right at the beginning of the Lehman default announcement. This most recent pullback began within a week from the Dubai announcement and the announcement itself had a $55 pullback day. It is an area that bears watching. We've seen the debt situation go from public, to institutional, to financial, and now with the most recent rumblings, NATIONAL. USA, UK, Spain, Greece, Iceland, Italy, and the list goes on, but you get the idea. There are those who feel the situation in China is not to be trusted either. The notion that the global economic recovery is not sustainable or at best in serious question is viable as the longer end of the interest rate curve as we saw on the TBT chart has not signaled a new higher trend rate as of yet. Should the recovery falter at a time of massive credit contraction the liquidation of assets both paper and hard cannot be dismissed. Paper will go and depending on the severity of the contraction will depend on how much gold might be affected. From Year to Year The markets will not be an easy navigating area in 2010. One of the key elements we need to be on guard for is whether the markets will do the opposite of this market, the USA dollar. There has been a potential trend change in the USA dollar and some believe will be the "surprise" trade of 2010. Whether that is a correct forecast or not will depend on many variables. This is where we come in. Over the course of 2010 we will be forever assessing the trends and looking for great chart set-ups to take opportunity by the hand and to brave the adversity coming. There is a great wisdom that is known by all the great traders and investors and it is this: "If you do not take advantage of the 4 or 5 good rallies that occur during the year and ride them, then the rest of the market will eventually nibble your profits and account balances away." Stop by my website [www.TechnicalCommodityTrader.com] for my Free Gold Trends Trading Analysis. Home | Products and Prices | Buying | Selling | FAQ | Articles | Forms | Top Website © Copyright J&M Coin & Jewellery Ltd. 2009. All rights reserved. Pricing index programming and site hosting by Sandrix Technologies Ltd. (AXD)