To answer the question “what drives the prices of gold” we have to determine the nature of gold. Its complexity makes it difficult to understand, even for Ben Bernanke, the former chairman of the U.S. central bank.
Gold Editorials & Commentary
July 10, 2015
The precious metals sector is enduring losses for the third straight week. The gold miners and silver have led the way down, though silver has rallied over the past two sessions. Gold has also rallied yet remains dangerously close to making a new weekly low for the...
- Governments move toward ever greater financial repression. - Repression includes suppression of rates, capital controls, outlawing of cash and bail-ins. - Finance ministers discuss cashless society, giving banks total control over public’s money. - Bail-in...
July 9, 2015
On Wednesday July 8th, the NYSE halted trading for several hours citing a “technical glitch” as the culprit with stocks finally resuming trading one by one later in the day. While on the same day United Airlines grounded planes as they resolved “a network...
Forget about Greece, they didn't matter yesterday as the NYSE shut down for nearly four hours. Greece does matter and certainly will matter in the weeks to come. Before getting to yesterday's very peculiar "glitch", I do want to mention something quite humorous...
Federal Reserve chair Janet Yellen may have missed her window of opportunity to raise interest rates. The economic data no longer paint a picture of even a tepid recovery.
Scary. That is the word that kept coming up over and over as the news came in this week. Greece technically defaulted. The Shanghai Composite index dropped some 30%. And then a computer glitch caused the NYSE to be down for three hours. Are these headlines just...
What do we know about how central banks respond to stock market crashes? Typically they lower interest rates and ease monetary conditions in liberal fashion and worry about the inflationary consequences later.
It’s a shame more Chinese investors didn’t get to read our timely warning of an impending mega-smash in the Chinese stockmarket – it would have been worth the cost of a subscription TO AVOID LOSING THEIR LIFE’S SAVINGS.
The world it seems can no longer escape Greece. The newspapers and the internet are abuzz with comments and analysis about Greece. Greece appears poised to continue to dominate the headlines for at least the foreseeable future.
Chinese markets bounced last night following drastic intervention by the state when it banned large players from selling their shares in listed companies – arresting the over 30% decline of the past four weeks.
Tonight I would like to update you on some precious metals charts we’ve been following very closely to shed some light on where we’re at and where we may be heading. When investing in the markets we need to have a game plan to follow so that we know when the game...
July 8, 2015
Did you know? Today, companies no longer utilize G.A.A.P. accounting principles (Generally Accepted Accounting Principles) when writing their Annual Reports concerning their company’s income and assets!
Somebody big is sitting on the gold price and a relief rally when the Fed raises interest rates is ‘a distinct possibility’, Ross Norman, CEO of Sharps Pixley and London Bullion Market Association’s top forecaster of the past 15 years, told ArabianMoney today.
An insolvent Greece has defaulted. On June 30th, officials missed repayment of billions in lMF loans and declared a banking holiday. Predictably, many Greek citizens responded to the crisis and bought gold coins (as well as all sorts of survival goods). So did a lot...
China’s stock markets continued their decline overnight with the Shanghai SE Composite falling another 4.64% and down of 32% since June 12. Markets have begun seizing up as sellers overwhelm the system.
“Gold is what will save you. Gold will protect you from financial calamity.” And on and on. As Greece burned, and as Puerto Rico runs into “issues,” we hear the same drivel from the same culprits week after week, month after month, and year after year. And, I...
July 7, 2015
Gold failed to rally above the 1174.00 area and it seems likely now that we are probably going to revisit the 1162.00 area again. It is still possible that we are going to drop back to the 1155.80 also.
The pressure on the US stock market continues to grow. Note my red annotations on this key S&P500 earnings chart. With QE gone, rate hikes on the horizon, wage pressures growing, and the business cycle peaking, it’s a “no brainer” that US corporate earnings are...
Consider this 25 year graph of the ratio of gold to S&P 500 Index. Unless you believe, AS I DON’T, that the Fed can levitate the S&P for many more years while squashing gold even further, this 25 year chart shows that gold is currently very low compared to...
Hyperinflation is commonly defined as rapidly rising prices which get out of control. For example, the Wikipedia entry begins, “In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, rapidly eroding the...
We are getting a test of the low from the big decline last Monday which is to be expected as many times it takes multiple tests before support really sticks. This is now the moment of truth as this low needs to hold support or a bigger decline can be expected.
“Wake up, people of the world and investors! Greece will come to your neighbourhood very soon, maybe not this year but next year or whenever…because the world is over-indebted and defaults will follow or they’ll have to create very high inflation rates”.
July 6, 2015
The final high to the Dow’s bull market was put in on the 20th May 2015 at 18351. This was outlined in client analysis the following day titled Dow Final High. For those following the continuous intraday charts, there was a clear bearish double top around 18350. It...
Early in the week gold and silver rose in tandem as Greece closed its banks and imposed capital controls. However, the bounce faced rising opposition as the week progressed towards the employment report out on Thursday, which equity bulls were talking up as the...
The Greek people have voted overwhelmingly against using austerity as a tool to somehow normalise their economy in a world where normality no longer applies, on any level, to economic policy.
The past four years or so have been extremely frustrating for investors like me who have structured their portfolios around the belief that the current experiments in central bank stimulus, the anti-business drift in Washington, and America's mediocre economy and...
Two weeks ago I expected only a minor setback in Gold. That was obviously wrong. Gold came all the way down to US$1,155.80 during last Thursday. But at least we saw a bounce from the lows which left a bull-hammer on the chart. With the Greeks clearly rejecting the...
We cannot remember having seen so many markets at critical points simultaneously. It is truly astonishing. Scary movie or turning points? We do not know for sure, but let’s review the strategic assets in order to get an understanding of the likely scenarios going...
While the short-term will be affected by today’s Greek referendum, unless SPX and other indices show some real strength if they continue to rally, more downward pressure appears to be in the cards and could last until October.
