Bear's Lair
Bear Markets always follow Bull markets and a severe stock market correction is long overdue. Bears Lair will spot, monitor and analyze the stock market correction as it develops.
A lot of thought and research takes place throughout each week and weekend in order to publish the best newsletter possible. Yesterday’s was no exception. We presented bullish and bearish thoughts on gold and those still stand.
Something big this way comes. Events will center upon the arch-nemesis of gold, the USTreasury Bond. Market interference is too huge, for bonds, for bank stocks, for the entire financial sector.
For the last two weeks, I've asked my readers to go to their local coin shop on Tuesday, September 2, at 2PM. In sum, for those who acted, they were alone. Most shops were out of silver, or nearly out.
The gold market analyses put out by the likes of Gold Fields Mineral Services (GFMS), the World Gold Council (WGC) and most major banks invariably concentrate on things like jewellery demand, new mine supply, and scrap supply.
“Sometimes I wonder whether the world is being run by smart people who are putting us on….or by imbeciles who really mean it.” – Mark Twain
The title refers to Aesop’s tale about the wolf that has lost his tail in a trap.
The highest functions of the financial system have finally broken to the point where smart and connected people are openly making comments.
I believe that it is time for us all to become (re)acquainted with Robert Triffin. Triffin was an economics professor at Yale University in 1960, when he exposed a gaping flaw in the Bretton-Woods monetary system:
Really, no hype, I found a way you can get physical silver practically for free.
Back in late 1979, the lineups to buy Gold looked more like the lineups to buy Stanley Cup Hockey tickets at the then famous Montreal Forum.
When we understand “what” is happening (the facts) then we might have a stab at “why” it is happening (the theories). In turn, this might throw some light on what we might expect to unfold in the foreseeable future.
We think the 80 week exponential moving average is valid to identify support for gold as 2004 identified that as a support pivot.
It is hard to find much positive regarding the gold trade lately. The attacks have been multi-faceted during the weak late summer season. So resort to something of value: THE TRUTH.
Yesterday, silver hit a low, and was down dramatically to as low as $14.08/oz. I'm sure the dip caused a lot of margin calls on people who owned silver futures contracts, who had to sell out.
If you take a stroll around the financial district of any big city such as London, New York or Tokyo, you will walk past countless well dressed and groomed men, in smart suits and ties with tidily coiffured hair and neatly clipped
Few of us holding gold related investments are happy about the recent performance of the gold price but, in this analyst’s view, the appropriate way of looking at this is: “thank goodness the fever is abating”.
Corrections are often confusing and difficult to analyse. The current action in the gold price is a case in point. As has been pointed out in the past, corrections can become extremely complex.
The path to the printing press is a long one. It is used at first to spread credit indiscriminantly in sustaining commerce and funding financial systems.
Gold/HUI ratio chart flashes 'BUY' for HUI
Relative HUI chart flashes 'BUY'
HUI approaching very strong support
The worst is over! We don’t need to raise any more money! Fannie and Freddie don’t need any more money, but give us a Blank Check anyway! Inflation is only 2.5%. It is pointless for me to go on.
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The first use of gold as money occurred around 700 B.C., when Lydian merchants (western Turkey) produced the first coins
