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...
Gold Editorials & Commentary
October 21, 2016
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...
The best performing precious metal for the week was gold, losing slightly less than a half of 1 percent, followed closely by silver with just a 0.78 percent decline. These metals largely stabilized following the prior week’s significant decline.
Our analysis indicated the immediate resumption of the rise in the precious metal stocks, regardless of the manipulation or other actions. Furthermore we are reminded that the big cycle wave is on the upward side of gold and silver, as we have discussed in our...
Wars and rumors of wars are now filling the headlines as listed below with the most immediate top-level rumors of war being created by Russia among its own citizens.
SPX -- as well as other major indexes -- is slowly succumbing to the pressure of bottoming cycles. It’s a mini-battle of the titans with the cycles’ increasingly relentless attack on the reinforced, concrete support-- which should continue into late November. It...
October 16, 2016
Stocks are exhibiting more choppiness and weaker action these days as we move back into earnings’ season. This motivated me to exit stocks. In accord with my chart analysis, I’m in an all cash position once again with not much on the horizon for a couple weeks.
It’s now clear that what governments did to counter the Great Recession may have delayed systemic collapse, but did not resurrect the old normal. Growth around the world is anemic – which is to say debt continues to increase faster than the productive capacity to...
Yes, 'tis another title of understatement, Gold having just completed its narrowest trading week of the year -- only 20 points between high and low -- a week ago having put in its widest, downside-biased week of the year of 79 points in range. Perhaps "Gold Stops...
The latest COT report shows that speculators continued to close out gold positions at an extremely fast pace. Despite the drop in gold, transparent gold holdings have actually increased over the past few weeks in contrast to what gold did during the 2013 drop. This...
The box in the BEV chart below contains the Dow Jones Index since the first week of September. With the presidential election so near, it’s not surprising the market hasn’t done much of anything as our “regulated” markets are being managed for the benefit of our...
October 15, 2016
Gold investors know that the metal has been under pressure due to expectations of a Fed rate hike in 2016. Many believe that an increase in the Fed Funds Rate would strengthen the dollar and send prices for precious metals lower. This has been a key driver of the...
Gold sector is on a major buy signal. Cycle is down, trend is down. Correction continues. COT data is now favorable for a recovery. 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...
