“The world in which we live has an increasing number of feedback loops, causing events to be the cause of more events (say, people buy a book because other people bought it), thus generating snowballs and arbitrary and unpredictable planet-wide winner-take-all...
Gold Editorials & Commentary
July 23, 2017
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Gold bullion is currently trading at $1,234.77 per ounce, up 0.67% or $8.17 (July 17, 2017). The precious metal slipped from $1,272.80 per ounce on 14 June, on the back of weakness in US...
For those of you fond of the fortnight, gold just finished its fourteenth of the year, with its third-best bi-weekly gain (+3.6%) of 2017; and this most recent week's gain (+2.2%) ranks fourth of the 28 year-to-date, price settling yesterday (Friday) at 1255 ......
I think we need to focus on what is happening to the dollar. The intermediate cycle is now 63 weeks long. Clearly that isn’t normal. I’ve maintained for several years that the end game was going to play out in the currency markets. There has to be consequences to...
July 22, 2017
Our proprietary cycle indicator is down. Gold sector is on major buy signal since early 2016. Speculation is now at a multi-year low.
Precious metals continue to rise and are accelerating now past resistance levels nicely. Consequently, I remain much more focused on leading stocks, which are breaking out, but not those coming out of corrections as the miners are.
July 21, 2017
Palladium is another element with great importance to the modern economy, but it’s often overshadowed by the other more famous and expensive precious metals. As the chart below shows, palladium has been generally cheaper than platinum – its more expensive substitute...
Conventional “Wisdom:” Markets move up and down, but the stock market always comes back. The DOW is frothy and needs a correction, but the stock markets are healthy and big gains lie ahead.
It’s the elephant in the room; the guest no one wants to talk to—debt! Total global debt is estimated to be about $217 trillion and some believe it could be as high as $230 trillion. In 2008, when the global financial system almost collapsed global debt stood at...
Here are today's videos and charts.
The gold-futures and silver-futures short positions held by speculators have rocketed up to extremes in recent weeks. These elite traders are aggressively betting for further weakness in gold and silver prices. But history has proven extreme shorts are a powerful...
A noteworthy event happened during an otherwise pedestrian period earlier this month. The Dow Jones Transportation Average (DJTA) rose to new highs for the year, exceeding the performance of the Dow Industrials (DJIA). This development certainly excited the Dow...
Central Bankers are absolutely terrified. In the last month, both Fed President Janet Yellen and ECB President Mario Draghi have issued somewhat hawkish statements, only to turn around within 48 hours and walk back their comments. Again, two of the most powerful...
Remember when you were taught about the inflation of the Weimar Republic in Germany at school? More recently I was taught about the inflation of Zimbabwe. In both instances we were given examples of how much the staple food of people cost – the humble loaf of bread...
July 20, 2017
Are the Chinese getting close to announcing a new gold-backed currency? Well, if the record amount of Australian gold exports into China is an indicator, it may be close at hand. While the Chinese have been importing a lot of gold from Australia, it reached a new...
Typically, US Presidents are wary of claiming stock market performance as a referendum on their success. Most have seemed to understand that taking credit also means accepting blame, and no one would want to make the tortured argument that the positive moves reflect...
American equities have been a good place to invest during the current bull market, now in its eighth year. Since the November election, the S&P 500 Index has surged close to 16 percent. But this means that valuations continue to creep up, and political risk...
Let’s start with the CRB index which built out a one year bearish rising wedge formation that broke to the downside in March of this year. The price action has been chopping to the downside and has gotten a bounce to the upside in late June. Normally the price...
The DXY Index, which is widely cited in the financial press as the "Dollar" or "US Dollar," has seen a correction that began in January of this year after topping at the 103.82 level, and has continued into this week's (Tues July 18) low, which came in at 94.48....
July 19, 2017
“Russia and China are well-positioned to execute the greatest gold short squeeze in history. Of course, they have no interest in doing so right now because both are still buyers who favor low prices. At some point, they will flip to hoarders who favor high prices,...
Very few investors caught on to it, but a few weeks ago the Fed made its single largest announcement in eight years. First let me provide some context. For eight years now, the Fed has propped up the stock market. In terms of formal monetary policy the Fed has:
James Rickards, geopolitical and monetary analyst and best-selling author of ‘Currency Wars’, ‘The Death of Money’ and ‘The New Case for Gold’ wrote yesterday in the Daily Reckoning that the “time to position in gold is right now.”
Many investors pigeon-hole themselves as “inflationists” or “deflationists”, where an inflationist is someone who expects more inflation over the years ahead and a deflationist is someone who expects deflation. I am grudgingly in the inflation camp, because the...
July 18, 2017
It´s been a couple of tough days when silver experienced a flash crash and gold moved below its 200MA at 1,235 USD. But the incredible pessimism among basically all precious metals investors and analysts was a great contrarian signal.
Over the past week or so, gold and associated assets have rallied quite nicely. Gold feels quite solid here. The five and ten day moving averages have turned up. The 14,7,7 Stochastics oscillator is also flashing a buy signal and moving higher.
Short-term we have started a new Trading or Daily Cycle. The much bigger question is have we also found a 5-6 month Intermediate Cycle Low? That is still an open question. I have Gold on day 4 and GDX on day 5 of their new Trading/Daily Cycles.
July 17, 2017
Over the last few days, there have been a number of articles on the internet suggesting that the Trump Administration may be getting close to imposing tarriffs on imported steel.
Platinum is one of the rarest elements in the world, much rarer than gold. This is why historically the white metal has been more valuable – just think of platinum credit cards which offer greater privileges and prestige than the gold ones. However, the ‘little...
Gold got a boost Friday on weaker-than-expected inflation and retail sales figures, casting doubt on the Federal Reserve’s ability to continue normalizing interest rates this year.
It is my privilege now to welcome in Axel Merk, President and Chief Investment Officer of Merk Investments and author of the book, Sustainable Wealth. Axel is a highly sought-after guest at financial conferences and on news outlets throughout the world, and it's...
