The amount of gold mined in a year is only about 1.5% of the total existing stock of gold, which is why changes in gold production have almost no effect on the gold price. It is also why changes in the cost of mining gold do not affect the gold price. In fact, cause...
Gold Editorials & Commentary
February 14, 2018
If you have a problem then you have a solution, otherwise you’re just fussing about the situation. Well, that may be true in most cases, but when we are discussing rigged markets and crony capitalism the solutions can sometimes be evasive. They do exist, it’s just a...
Failing that, ask its pension fund for a few index-linked Gilts... The BANK of ENGLAND announced its latest policy decision in London on Thursday, writes Adrian Ash at BullionVault.
February 13, 2018
There are eleven indisputable signs on Wall Street that US Stocks have formed the Mother Of All Bubbles! Only the financially naïve will not see these historic signs…as they are blinded by unbridled greed. Would that all intelligent investors who have gained profits...
Gold has staged a superb rebound from the $1310 support zone, but that was overshadowed by the truly spectacular reversals taking place in most of the Western world’s gold stocks!
“Don’t panic, buy the dip, who cares?” or “These are rumblings of an earthquake, people will be hurt like in 1929” - which one is it? I would call it a wake-up call. Let me explain:
In new research, entitled ‘The rising attractiveness of alternative asset classes for Sovereign Wealth Funds‘ PwC explain how gold is viewed as an important diversifier by sovereign wealth funds, as both an important hedge and for long term returns.
Yesterday we shared with you Part I – big picture analysis “math” Behind the recent sell-off. Today, we want to show you the what the math is pointing to in the short term and what to expect next.
February 12, 2018
The best performing metal this week was gold, down 1.26 percent. China’s demand for gold jewelry rose 10 percent last year to around 700 metric tons due to increasing wealth of residents. China is the largest market for gold in the world.
U.S. equities got a free ride on the Trump train after his election, even as Federal Reserve officials hiked interest rates. That ride may have ended last week.
The markets have changed and many are going to get “taken to the cleaners.” Last year, 2017, was a not a normal year for stocks. Stocks as an asset class are not meant to go straight up without even a 1% pullback. But that is precisely what happened for nearly an...
We continue our hiatus from capital destruction to look further at interest rates. Last week, our Report was almost prescient. We said: The first thing we must say about this is that people should pick one: (A) rising stock market or (B) rising interest rates. They...
Volatility has now returned to the stock market after a hibernation of several years. An explosion of volatility normally is indicative of a change of trend. The recent signals transmitted by this market have been classic and has been telling us that we have entered...
SPX is engaged in the first intermediate correction since the one which bottomed in January 2016, at 1810. Although it found strong initial support at 2533 on Friday and rallied over a hundred points, it is too early to declare that the correction is over. At the...
February 11, 2018
Consider the hypothesis that, all things being equal, a price will maintain its ruling trend indefinitely. This is irrespective whether the trend is up or down or sideways, or steep or shallow. Since we know prices changes are determined by the ratio of supply to...
First, let’s start off this weekend’s update remembering that gold is the ultimate cycle driver across the broader PM complex. Friday’s late afternoon post shows you this and how volatility in the Stock Market can impact silver and the miners.
Such a fun month is February! One strives to regain liquidity following December's holidays and January's quarterly tax payments. And who doesn't love Valentine's Day? Financially, February is not a month over which there is much fuss. For gold, February is...
“We inspect the price volatility before, during, and after financial asset bubbles in order to uncover possible commonalities and check empirically whether volatility might be used as an indicator or an early warning signal of an unsustainable price increase and the...
Two Friday’s ago, (January 26th) the Dow Jones made its latest BEV Zero, new all-time high. Nine trading days later (Thursday Feb 8th) it broke below its BEV -10% line in a very dramatic fashion.
February 10, 2018
We will update global markets as well as the macro situation in NFTRH 486, but for this article I’d like to focus on the US stock market.
To public readers of our updates, our cycle indicator is one of the most effective timing tool for traders and investors. It is not perfect, because periodically the market can be more volatile and can result in short term whipsaws. But overall, the cycle indicator...
In an almost prophetic blog post from John Hussman last week, we are warned about the bubble waiting to collapse in the US equity market and the hard lesson investors are about to learn. Drawing on both his own experience and the work of the much revered Didier...
30% to 45% assuming consumers remain rational and assuming commercial banks are able to cope with a possible increase in their levels of non-performing loans.
February 9, 2018
It is my privilege now to welcome in Axel Merk, President and Chief Investment Officer of Merk Investments and author of the book Sustainable Wealth. Axel is a highly sought-after guest at financial conferences and on news outlets throughout the world, and it's...
As we have noted here before, we believe that financial markets have generated the biggest bubble in history. There are many supporting facts for this view, from extreme measures of market sentiment to prolonged record low volatility, unprecedented low interest ...
Here are today's videos and charts.
The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders...
We’ve received many comments and questions from our members over the past few days regarding the recent US market crisis asking what to expect next. Is this the start of something bigger? Deeper? What should I do with my open long positions? What should I do to...
Long ago in a distant galaxy called “2017,” stock prices rose every day. And the people were happy. With paper profits in hand they maxed out their credit cards and bank lines to buy flat-screen TVs and cars and cover their student loans.
February 8, 2018
Before we look at tonight's chart I would like to reiterate once more that we have traded one of the best bull markets runs in history. There was hardly a time over the last year or so that the stock markets were down more than 2 or 3 days in a row. It seemed like...
