The major long-term driver of the gold price is confidence in the official money and in the institutions (governments, central banks and private banks) that create/promote/sponsor the official money. As far as long-term investors are concerned the gold story is ...
Gold Editorials & Commentary
March 20, 2018
Rising U.S. interest rates, usually bad news for gold, are instead feeding signs of financial stress among debt-laden consumers and helping drive demand for the metal as a haven.
It’s very important for gold, bond, and stock market investors to stay focused on the main fundamental price drivers and ignore what may feel exciting but is largely irrelevant to price discovery. Citizen demand from China/India and US central bank policy are the...
Rising inflation has hit the headlines, sparking some attention from journalists. What most mainstream investors don’t realize, though, is that history shows inflation can quickly get out of control, and not just in some mismanaged third-world country.
What is at stake is the reserve status of US dollar following: Loss of dependency on Saudi oil because of the US becoming an oil net importer as early as 2019 making the Petro-Dollar contract less of importance. The introduction of the Petro-Yuan-Gold contract...
March 19, 2018
I often remind investors to look past the negative and find the positive. Last week provided no shortage of big splashy headline stories, from yet another high-profile personnel shakeup at the White House to a nail-biter special election in Pennsylvania’s 18th...
Gary Cohn resigned as President Donald Trump’s Chief Economic Advisor on March 6th. He and Trump didn’t see eye to eye on the recently imposed tariffs and the President selected CNBC commentator Larry Kudlow to replace him Wednesday. Perhaps it was Kudlow’s...
To start, take a look at the chart I have posted below and tell me that is not a great-looking chart. It is the chart of the TSX Venture Exchange, the exchange that has financed a great many of the world’s biggest discoveries.
We will take another break from capital destruction, to treat a topic which has come up this week. On March 11, we said: “…central bankers do not think about gold.
The Bonds segment of NFTRH 491 took a turn to tin foil territory to allow the letter writer to expose newer subscribers to his ideological views and thus, bias. #491 also got pretty talky on the precious metals as it did a thorough review of the sector’s status,...
Regular readers will be familiar with the charts used in these reports. The fact that the gradients of all the trend lines used in the analysis are derived from the master line shown as M, nevertheless might not be fully appreciated.
Current Position of the Market: SPX: Long-term trend – The bull market is continuing with a top expected in the low 3000s. Intermediate trend – The intermediate correction from 2872 could nowcontinue until May-June.
March 18, 2018
According to the latest available data, foreigners owned 48% of all Treasury debt. Although it’s still high, the Wells Fargo economists note that it is down from 60% in 2008. Though following the implementation of trade tariffs it is very likely that this percentage...
You know the expression: "Get in, strap down, shut up, hang on!" For the agonizing narrow road upon which Gold has been slowly trudging these recent weeks is due to suddenly widen into a superhighway. And there's no week like this new week for it to happen. But here...
Since February 8th when the Dow Jones broke below its -10% BEV line in the chart below, it’s been building a pennant formation. I don’t know how significant it will be when the BEV plot breaks above or below the pennant, as technical analysis in today’s “regulated”...
March 17, 2018
IRELAND has a long and rich history of gold mining, dating back to the 1800s and continuing even today. The first Irish gold rush occurred from 1795 through to 1860 with around 300kg of the mineral hand-mined from deep within the Emerald Isle.
This week’s appointment of former Bear Stearns’ Chief Economist Larry Kudlow as head of the National Economic Council (“NEC”) will go down in history as one of the worst appointments in U.S. economic and political history.
Speculation is in bull market values. This is a massive bottoming pattern four years in the making. ABX – a major component in GDX, had a very high volume day early this month, and has marked a bottom so far. GLD is on short-term sell signal. GDX is on short-term...
March 16, 2018
In 1992 a book entitled “Bankruptcy 1995: The Coming Collapse of America and How to Stop It” hit the nation by storm. Written by Harry Figgie, a prominent businessman who had built a Fortune 500 company, and Gerald Swanson, an economics professor with expertise in...
Cycles, cycles everywhere. We’ve already discussed the current state of the U.S. business cycle, arguing that the expansion should last for a while, although it is more advanced than in Europe. However, business cycles aren’t the only creatures living in an economic...
Here are today's videos and charts.
The gold miners’ stocks remain deeply out of favor, trading at prices seen when gold was half or even a quarter of current levels. So many traders assume this small contrarian sector must be really struggling fundamentally. But nothing could be farther from the...
We have seen downgrade after downgrade on Barrick Gold (ABX) for years. Many keep looking lower and lower, with some even considering that this stalwart in the miners’ complex may even go out of business due to its debt load.
Hugo Salinas Price wrote an excellent article called 'Bad karma brings bad consequences for those who practice it’ on the unwanted consequences of the trade tariffs imposed by the US. He points out that the accumulation of US dollar reserves in the forex reserves of...
March 15, 2018
Gold is trading lower this morning and most media reports attribute the weakness to next week’s Federal Reserve Open Market Committee meeting. At that meeting, as we have heard endlessly, the Fed is scheduled to raise interest rates by a quarter of a point, and...
As our loyal readers know, at U.S. Global Investors we carefully monitor the price of gold. We pay close attention to the macro drivers moving the yellow metal, like government policy and cultural affinity spurring demand globally. We also monitor the micro drivers...
Where is the gold bull market that we predicted would begin about now? Here is our broad-based overview. The financial markets continue to expect an aggressive Fed going forward with four—even five—rate hikes this year and a continuing shrinkage of its balance sheet...
Our recent research shows that the current US markets are setting up for what could become a very interesting price range rotation as well as increased volatility. Our team of researchers at Technical Traders Ltd. have identified a number of key elements that...
If you’ve been following me for any length of time you know I’ve been a major bull when it comes to the stock markets. The last two years were some of the best years to be a bull in one of the greatest bull markets of all time and I don’t say that lightly.
March 14, 2018
Cheyenne, Wyoming - Sound money activists rejoiced as the Wyoming Legal Tender Act became law today. The bill restores constitutional, sound money in Wyoming.
