Stocks were flat and mixed again Friday, October 22nd. The sideways move with a slightly down bias since early August with overlapping oscillating moves almost daily is characteristic of a typical wave b, d, or 4 Elliott Wave. This is helpful in identifying the...
Gold Editorials & Commentary
October 23, 2016
From Friday a week ago (14 October) through settling out the week yesterday (Friday) at 1267, Gold has continued to firm following its early October flushing to as low as 1243: over the past six trading days, price has risen out of the 1240s, through the 1250s,...
Stocks are exhibiting choppier and weaker action these days as we move back into earnings season. This caused me to exit stocks. Consequently, I’m in an all cash position once again with not much on the horizon for a couple weeks from what the charts are telling me...
October 22, 2016
As we've been monitoring all year, the total amount of gold allegedly "delivered" through the COMEX has soared in 2016. This is simply another anecdotal data point of gold demand but the trend is certainly noteworthy, particularly when you see the numbers thus far...
Gold and gold stocks have stabilized after forming a short-term low and even held up well while the US$ Index pushed to an 8-month high. Conventional wisdom would tell us with the US$ Index nearing a major breakout, Gold and gold stocks would be vulnerable to...
The one factor gold bulls have had going in their favor during the recent selloff that occurred in gold and the gold mining shares in this month of October, has been the stellar performance of the reported holdings in the gigantic gold ETF, GLD. It has held rock...
Silver is on a long-term buy signal. Short-term is on sell signal. Correction continues but can end soon. Silver is more volatile than gold, manage your risk.
October 21, 2016
Gold & Silver Bullion Video Analysis
The big decline in the precious metals appears to already be underway (even though we are in a short-term corrective upswing) and it seems that gold will move much lower in the coming months even though it’s likely to move higher in the coming days. The big decline...
There are a lot of people who are concerned about the performance of gold and the fact that the price after four years of correction is still so far from the high. The mistake that most people make is to measure gold in US dollars. We are seeing currently very...
Gold’s early-October plunge on futures speculators’ stop losses being run has naturally left this metal mired in battered technicals and bearish sentiment. But that sharp selloff has already accomplished its rebalancing mission. The excessive gold-futures trading...
The 2016 election year is bringing out the worst among some elements of society. From vandalism to physical assaults to large scale race riots to terrorist bombings and mall stabbings, social disorder has become a more prominent feature of life in a polarized...
October 20, 2016
Money market funds are regarded as the safest, most conservative investment. It’s where cash in most checking, savings and brokerage accounts resides. The invested amounts are readily converted into cash when we need to settle transactions and make payments.
One of the more striking developments in the bizarre world of gold and silver trading has to be the recent settlement between Deutsche Bank (DB) and a class-action group that alleged bullion banks (DB, Scotia and HSBC) were manipulating the physical and COMEX silver...
As the final presidential debate is over, one wonders if we will hear anything of substance or be subjected to a continuous barrage of ‘soap opera’ style chit chat. Hilary Clinton’s lead is increasing according to the bookies with the latest odds at 1/5 and Donald...
It is time to revisit the Fiat Money Quantity (FMQ), which totals US dollar money deposited in the banking system, the commercial banks’ money on deposit at the Fed and physical cash. Besides alerting us to how the expansion of fiat money is progressing, an...
The Federal Reserve is, at last, acknowledging at top levels that its economists are completely baffled, its recovery is failing, that the Fed cannot raise interest and may even have to heat up its stimulants … or we may end up with a permanently scarred and...
Cash is the new “barbarous relic” according to many central banks and regulators. Moreover, some economists believe there is a strong, concerted push for a ‘cashless society’.
October 19, 2016
Gold is not just an inert metal, it is also an indifferent metal. It doesn’t care who wins the election. It is apolitical. One might even call it politically agnostic. In the end, it will respond to the macro-economic situation globally as it unfolds no matter who...
The Central Banks are going to go absolutely nuclear within the next 18 months. In the last few weeks we’ve seen the Bank of Japan, the Bank of England, the European Central and the US Federal Reserve all push for fiscal stimulus instead of monetary stimulus.
We have many analysts and commenters posting many different perspectives on the metals for years. Some view them as a terrible investment and others view it as the only reasonable investment. I am not going to discuss the merits or fallacies contained in both of...
Phase One began in January 2016…and slowed down from July until early October. (Charts in this commentary are courtesy Stockcharts.com, unless indicated). The first sign of a turnaround can be seen in this chart:
HSBC’s respected chief precious metals analyst James Steel has written a note pointing out that the global trade slowdown will likely lead to “higher gold prices” as reported by Bloomberg.
Metals investors wonder what this presidential election will mean for gold and silver markets. Since Nixon closed the gold window in 1971 and the years of price inflation that followed, presidents have largely ignored gold, the Federal Reserve, and other issues...
Despite my many warnings against inappropriately using these leveraged vehicles, many investors still view them as an “investment.” Too many people will place their money into these triple leveraged funds expecting that they are going to supercharge their returns....
October 18, 2016
The SPDR fund tonnage increased again yesterday, and now sits at 967 tons. This is obviously good news for all higher gold price enthusiasts. Gold is attempting to stage a nice upside breakout from a small symmetrical triangle pattern.
All else remaining equal, an increase in the supply of money will lead to a decrease in the purchasing-power (price) of money. Furthermore, this is the only effect of monetary inflation that the average economist or central banker cares about. Increases in the money...
The “Euro will collapse as it is a house of cards” warned Otmar Issing, the founder and creator of the euro in an extraordinary interview on Monday.
October 17, 2016
Just as April showers bring May flowers, plentiful monsoon rains in India tend to drive up demand for gold jewelry among rural, income-flush farmers, who make up a third of the country’s consumption of the yellow metal.
It is finally going to be a make or break earnings season for stocks. This is because the justification for record high stock prices that have been perched atop extremely stretched valuation metrics has been the following false assumptions: the hope that the Federal...
