Many public readers have asked what my current prognosis is for the gold market.
Gold Market Analysis
Technical analysis to forecast and predict the future price trends of gold and other precious metals, as well as the US Dollar and the Euro.
Gold and the stock market continue to trade within a tight range this week. While the long term trend for both stocks and metals are up, and the charts look bullish I am not buying at this level because the market is over bought.
I wish I could talk about the recent CFTC hearings in regards to position limits on metals in a more favourable light, but it seems all the build-up was for naught.
In the current phase of relative peace and stability we now enjoy, many are questioning when the next major war may occur and speculation is rampant as to major participants involved.
Among all commodities stocks, no group is as alluring and dangerous as junior gold stocks. The vast majority of these small companies are explorers, having never made a single dollar in sales.
I think many of you will find this article interesting as I show several different indicators which point to an imminent correction for stocks and precious metals.
The USEconomy is bifurcated, with price inflation advancing on the cost side while price deflation harms on the asset side, to produce a nasty storm that is unlikely to abate.
Mr. Bevan, could you explain what a person is to do with gold and silver coins in the future, when the dollar becomes worthless, outside of taking them to a coin dealer?
"There is no means of avoiding the final collapse of a boom brought about by credit expansion.
Am I being paranoid? Was the spike in the Dow Jones Industrial Index - which took it to a new high thereby resulting in a Dow Theory buy signal - contrived?
Last week was nothing special as stock market continued to drift higher on light volume and the Volatility Index (VIX) reaching a new multi year low.
The dollar succeeded in confounding many experts late last week with a sudden strong rally.
WHAT PROPS UP THE DOLLAR
Gold has much further to run in the years to come and silver even more-so. There is no other possible outcome as world fiat currencies continue to be devalued. It is that simple.
Gold stocks continue to face a stiff psychological headwind. As measured by their flagship HUI index, they were ripped to shreds in late 2008's brutal stock panic.
Earlier this week I noticed a pattern in the market throughout an entire trading session that has inspired me to write a short piece on sector rotation.
"We are spending more money than we have ever spent before, and it does not work. After eight years, we have just as much unemployment as when we started and an enormous debt to boot."
Last weeks price action unfolded just as we expected. Money poured into stocks with the focus being on small cap, banks and technology stocks.
We are finally starting to see some retaliation against those “too big to fail” institutions who are basically criminals who have robbed the middle class of their wealth and livelihood over time. Let’s hope
The US Mint's popular American Eagle gold and silver coins remain in high demand by US investors.
So far this week has been pretty slow. Large cap stocks continue to lag the market which can be observed by looking at the Dow Jones Industrial Average which still has room to move higher before breaking the January high.
To be sure, almost without debate, all the financial world has turned to crisis mode. One can safely describe the norm to be crisis proliferation.