Now the real ‘fun’ begins. Last night Britons voted to leave the European Union, sending shock waves around the world -- though not directly or immediately threatening the concept of European integration.
Gold Editorials & Commentary
June 24, 2016
Regardless of the extent to which global fear mongers are right about the economic catastrophe that will hit every shore of the world after the Brexit, the most significant fact of the Brexit will be that the UK was the first nation to start the inevitable break-up...
The collective decision of the British electorate is to reject the recommendation of its government, excepting those of its few dissenting ministers, that Britain should remain in Europe. It is a signal failure of government policy. Above all, it is a failure that...
There has been record online sales on the GoldCore website for this time of day and the phones are ringing off the hook. We have had more sales than during the Lehman crisis and at the height of the Eurozone debt crisis. It is nearly all buying with a preference for...
With the half-year end just 5 trading days away, we suddenly have a small black gosling on the radar coming in to land. The question whether it will in fact land is perhaps not as important as to how large it will by the time it does so. As I write this on Friday...
June 23, 2016
It appeared the gap between the S&P500 and the Bloomberg Commodity Index was finally beginning to close, when we first published this chart. However, it was apparently just a flash crash for the S&P500 as the index continues to climb, while commodities in...
With each passing day, systemic risks in the financial system become greater. Smart money insiders and billionaire investors are taking note – and taking defensive actions.
Since its recent low at $1,200 on May 30th gold posted a massive rally reaching $1,315 last Thursday. Since then gold has started to retrace back towards the February highs at $1,262. So far everything is within a normal pullback. But the probability for a larger...
Franklin once said: “So convenient a thing is it is to be a reasonable creature, since it enables one to find or to make a reason for everything one has a mind to do.”
BREXIT Day and the UK EU referendum is upon us today and investors are expecting continued choppy trading in financial markets in the coming hours. The City of London is bracing itself for potentially the most volatile night since the sterling devaluation on Black...
June 22, 2016
The middle window is the TICK/TRIN ratio with a 5-period moving average. This ratio hasn’t said much this year. However, it has now reached oversold levels suggesting there is support here at least short-term. This indicator suggests the Gap near 210 on the (NYSE:...
We live in a world where the main driving force behind this illusory economic recovery is hot money and data manipulation. According to Government stats, inflation is nonexistent. However, anyone with a grain of grey matter understands that this is not the real...
With the UK’s referendum coming up on June 23 2016, the possibility of the UK leaving the Eurozone is becoming a probability, according to polls in the UK. While global financial markets have been tensioning up ahead of the votes and the discussion has targeted the...
Gold stocks need very specific conditions in order to perform well. The last time most of these conditions were present was during the Great Depression. However, conditions are currently shaping up to be even more ideal.
Examine the 30+ year graph of the gold to silver ratio. This is the Big Picture perspective. The ratio moves from low to high and back to low in long-term patterns. I have shown the large scale moves with red (up) and green (down) arrows.
The US dollar is still the world’s dominant reserve currency for global trades. The question is: will the petrodollar system continue to hold? The short answer is: yes in the near future, as there are no viable alternative at present. In our separate article, we...
This past week saw some very exciting movement in the metals. There was something for the bulls and the bears alike. But, for now, the bulls still have the edge, at least in my humble opinion. Yet, the price action and sentiment have many looking much lower now,...
July 5th keeps coming back as an important cycle low for the stock market. The recent daily Bollinger Bands on the SPX shows increasing constriction, which in the past pointed to a possible melt down, similar to what we saw from August 18-24, 2015.
I think we can safely assume the Brexit vote is going to fail. This should be bullish for stocks and bearish for the dollar. A falling dollar should be good for gold. However, with stocks and oil moving higher it’s likely to take some focus off gold.
Gold fell again today to its lowest in a week despite continuing uncertainty about the outcome of the Brexit referendum. This is contributing to very significant high net worth and institutional demand in recent days, particularly in the UK, which is leading to “...
June 21, 2016
During my most recent webcast a couple of weeks ago, I had the pleasure of being joined by the CEO of the World Gold Council (WGC), Aram Shishmanian. As expected of someone of his stature, Aram brought another level of insight and expertise to our discussion of gold...
This year’s presidential election is getting lots of attention, and many are wondering how the outcome might impact the gold and silver markets. How will a Donald Trump victory affect gold prices -- and what will be the impact of a Hillary Clinton presidency?
Gold moved lower, as we expected, in the overnight session, and we reached 1272.00, at the time that this Post was being written. We still expect that our current correction is going to continue, no matter which option this market is ultimately going to follow.
The economics world is all a-chatter about how central banks and their member banks have moved interest rates beyond the zero bound to charging negative interest rates. There is just as much brainless talk about why this is accomplishing nothing. No one seems to...
Gold is the ultimate safe haven. Therefore, when global financial risks rise or fall substantially, enormous institutional liquidity can flow into gold…or out of it.
Gold fell again today despite very robust physical demand in western markets and especially the UK. Gold fell to a ten-day low as the recent global share rally showed signs of exhaustion.
I see traders everywhere worrying about how the Brexit vote will effect gold. Folks, forget about the Brexit. By this time next week the Brexit will already be fading into memory. Consequently, the market will go back to doing what it was doing before the vote.
With both gold and silver ETFs trading in heavy volumes last week, it suggests liquidation is occurring, and the upcoming Brexit vote could impact the US dollar.
With Friday's Commitment of Traders Report, the ridiculous has just metastasized into the sublime as the Commercial Cretins have just gone "over the top" and added another 5.4M "ounces" to their synthetic gold short position. They are now carrying the largest short...
June 20, 2016
A lot of good economic theory boils down to the acronym TANSTAAFL, which stands for “There Ain’t No Such Thing As A Free Lunch”. TANSTAAFL is an unavoidable law of economics, because everything must be paid for one way or another. Furthermore, attempts by...
