Our proprietary cycle indicator is DOWN. Gold sector is on major buy signal since early 2016. We alerted our members to a potential bottom in last week’s update, and this week, a pivot low is confirmed. What does this have to do with gold stocks?
Gold Editorials & Commentary
June 30, 2018
June 29, 2018
It is my privilege now to welcome in Frank Holmes, CEO and Chief Investment Officer at U.S. Global Investors. Mr. Holmes has received various honors over the years, including being named America's Best Fund Manager for 2016 by the Mining Journal. He is also the co-...
In the latest edition of the Market Overview, we have analyzed the risk related to the rising U.S. public debt and private leverage. This month, we will adopt a more global perspective. Until recently, thanks to the synchronized worldwide growth, it was easy to lose...
Here are today's videos and charts.
June 28, 2018
The GDX/COPX ratio has broken above the 50 & 200 day moving averages and is still going, despite gold’s ignominious state at the moment.
The economy has hit a wall and is now sliding down it. I don’t care what bullish propaganda may or may not be bubbling up in the headlines from the financial media and Wall Street, the hard numbers I look at everyday show accelerating economic weakness. The fact...
The recent Alchemist includes an interesting article about hedging. Should mining companies hedge their gold production? Or should we use gold as hedge? Of course, we should. But against what? The WGC argues that the yellow metal is a hedge against emerging market...
Since December 2017, Russia has cut its holdings of U.S. foreign debt by more than half. Instead, it’s been increasing the share of gold in its international reserves. That’s understandable behavior for a country that has to deal with an unpredictable U.S. sanctions...
June 27, 2018
For the reasons we've discussed over the past several years, the U.S. yield curve continues to flatten, with Wednesday seeing new, 11-year low spreads. As you know by now, this has significant long-term implications.
A gold bond is debt obligation that is denominated in gold, with interest and principal paid in gold. As I will explain below, it’s a way for the issuer to pay off its debt in full, and there are other advantages.
It is generally agreed that in a Gold Bull Market, the gold producers lead the way, by outperforming gold bullion. To examine this trend we visit Stockcharts.com and pull up a chart that compares mining stocks (GDX) to gold bullion (GLD).
In yesterday’s intraday Alert, we explained why the short-term outlook for the precious metals changed from bearish to neutral and we took profits from our short positions. It was not just the fact that the price targets were reached for gold and silver.
– London house prices down 1.9 per cent in Q2 (yoy). – London house prices still 50% above 2007 bubble peak (see chart). – Brexit and weak consumer confidence to blame say experts. – Little sign that U.K. property “weakness” is likely to change. – London property...
We do not focus too much on the US dollar because in the big picture Gold usually leads movements in the dollar. As it pertains to the present, Gold’s failure to breakout (while the dollar made two new lows since the summer 2016 peak in Gold) implies that the the...
June 26, 2018
I don’t like to spend a lot of time in the grocery store, but I love the price sales…and gold’s superb seasonal price sale continues in orderly fashion. Astute investors are now calmly booking fabulous gold and silver Put Option profits, and filling their “grocery...
Do you have enough of constant fluctuations, changes in the short-term trends? Are you tired of checking the gold prices all the time? Good, so let’s rest from the daily hustle and bustle and focus today on what will be in thirty years.
As U.S. gold exports to Hong Kong and China fell 25% in the first four months of the year, London picked up the slack. According to the USGS, U.S. gold exports to London more than doubled from January to April, compared to the same period last year (see chart).
In a nutshell, what we have in place now for the precious metals is a perfect storm of oversold technicals, compelling fundamentals, geopolitical drivers, and absolutely abysmal sentiment going into the month of July, which typically marks the onset of the positive...
The cyclical nature of commodities and equities goes back at least until the 1970’s. When commodities are doing well, equities are performing poorly. Then the cycle flips and investors pile into equities, eventually making them expensive and commodities like gold...
June 25, 2018
We’re about nine years into the economic recovery following the Great Recession. It’s been an extraordinarily profitable period for the stock market—one of the best in U.S. history—and I hope you’ve participated.
Before being defeated today by Uruguay at the 2018 FIFA World Cup, Russia surprised experts and fans alike. Expectations were low at best. Because of recent setbacks, including a disastrous performance at the 2016 UEFA European Championship and injuries sustained by...
The sound money movement reemerged on the national political scene a decade ago. In 2008, the financial crisis brought in a fresh wave of U.S. gold and silver investors.
For many years, now, perhaps the main theme in my writing has been the inequity visited on working US households by the newfangled CPI introduced during the first Clinton administration. This change meant wage and salary increases would lag the real increases in the...
The best performing metal this week was silver, down 0.68 percent. According to the National Association of Realtors, sales of previously owned U.S. homes fell in May for a second month due to a lack of inventory and higher asking prices. Data shows that the median...
Last week, we discussed Social Security, a Ponzi scheme that is inevitably approaching its default. That leads us to another point in our broader discussion of capital destruction. Let’s illustrate with an example.
Gold’s failure to take off like a rocket when conditions become this favorable has been a puzzle for its fans. One explanation that has gained a lot of, ahem, currency is that it’s been replaced of late as the world’s safe haven asset by cryptocurrencies, bitcoin in...
As a former spot currency trader for a major international bank, I have had first-hand experience of central banks directly intervening in currency markets in massive size, repeatedly.
This weekend I would like to review the main features characterizing the markets which I have chronicled over the past 6 months. Often times “less is more” so I will keep my remarks condensed and focus on the overall stock market and the precious metals.
For those that follow me regularly, you will know that I have been tracking a set-up for the SPDR Gold Trust ETF (NYSEARCA:GLD), which I analyze as a proxy for the gold market. I also believe that gold can outperform the general equity market once we confirm a long-...
Next week, the bulls will have their best opportunity yet since the consolidation began to turn the trend in their favor. Last Tuesday, SPX had a sharp decline of about 30 points, immediately bounced off a good support level in the low 2740’s, closed in the upper...
