American equities have been a good place to invest during the current bull market, now in its eighth year. Since the November election, the S&P 500 Index has surged close to 16 percent. But this means that valuations continue to creep up, and political risk...
Gold Editorials & Commentary
July 20, 2017
Let’s start with the CRB index which built out a one year bearish rising wedge formation that broke to the downside in March of this year. The price action has been chopping to the downside and has gotten a bounce to the upside in late June. Normally the price...
The DXY Index, which is widely cited in the financial press as the "Dollar" or "US Dollar," has seen a correction that began in January of this year after topping at the 103.82 level, and has continued into this week's (Tues July 18) low, which came in at 94.48....
July 19, 2017
“Russia and China are well-positioned to execute the greatest gold short squeeze in history. Of course, they have no interest in doing so right now because both are still buyers who favor low prices. At some point, they will flip to hoarders who favor high prices,...
Very few investors caught on to it, but a few weeks ago the Fed made its single largest announcement in eight years. First let me provide some context. For eight years now, the Fed has propped up the stock market. In terms of formal monetary policy the Fed has:
James Rickards, geopolitical and monetary analyst and best-selling author of ‘Currency Wars’, ‘The Death of Money’ and ‘The New Case for Gold’ wrote yesterday in the Daily Reckoning that the “time to position in gold is right now.”
Many investors pigeon-hole themselves as “inflationists” or “deflationists”, where an inflationist is someone who expects more inflation over the years ahead and a deflationist is someone who expects deflation. I am grudgingly in the inflation camp, because the...
July 18, 2017
It´s been a couple of tough days when silver experienced a flash crash and gold moved below its 200MA at 1,235 USD. But the incredible pessimism among basically all precious metals investors and analysts was a great contrarian signal.
Over the past week or so, gold and associated assets have rallied quite nicely. Gold feels quite solid here. The five and ten day moving averages have turned up. The 14,7,7 Stochastics oscillator is also flashing a buy signal and moving higher.
Short-term we have started a new Trading or Daily Cycle. The much bigger question is have we also found a 5-6 month Intermediate Cycle Low? That is still an open question. I have Gold on day 4 and GDX on day 5 of their new Trading/Daily Cycles.
July 17, 2017
Over the last few days, there have been a number of articles on the internet suggesting that the Trump Administration may be getting close to imposing tarriffs on imported steel.
Platinum is one of the rarest elements in the world, much rarer than gold. This is why historically the white metal has been more valuable – just think of platinum credit cards which offer greater privileges and prestige than the gold ones. However, the ‘little...
Gold got a boost Friday on weaker-than-expected inflation and retail sales figures, casting doubt on the Federal Reserve’s ability to continue normalizing interest rates this year.
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...
Stockholm Syndrome is defined as “…a condition that causes hostages to develop a psychological alliance with their captors as a survival strategy during captivity.” While observers would expect kidnapping victims to fear and loathe the gang who imprison and threaten...
The credit cycle is turning for the worse. Delinquency rates are creeping up in the consumer loan and commercial/industrial loan space. This is a clear signal that both the consumer and the corporate sectors of the economy are beginning to run out of steam.
We’ve had to wait 18 months for an opportunity as big as the one we saw late in 2015 to appear again in the Precious Metals sector. “Wait a minute”, I hear you say, “prices were generally lower back then at that low than they are now, so how can it be as big an...
Wealth Research Group published an important update on the precious metals sector, which is trading in an unusual pattern, and how the bottom for junior mining shares is likely to play itself out in six to eight months.
Stark warnings have been issued by the Bank of England and its regulatory arm, the Prudential Regulation Authority (PRA). In less than one week the two bodies issued papers and speeches to warn industry members that many banks are showing signs of making the same...
“There is some evidence – which will need to be confirmed next week – that SPX is getting ready to start the final wave of its terminal pattern, and that this could take it to about 2500 before we can start the long-awaited intermediate correction.”
July 16, 2017
Welcome to the 400th consecutive Saturday penning of The Gold Update, double the number we'd intended to write until you cherished readers reversed our intent for "Gold 2000 or 200 missives, whichever comes first" to "second."
Not unexpected, the Dow Jones Index made new all-time highs on the last three trading days of the week. The number of BEV Zeros the Dow has made since the November election increases weekly. Since the elections, there have been 169 NYSE trading sessions, of which...
July 15, 2017
Long-term – on major buy signal. Short-term – on sell signals. Gold sector cycle is down. A major consolidation is in progress and now near completion. Speculative positions according to COT data are a multi-year low.
July 14, 2017
Stocks are often considered the sure-fire investment for the long term thanks to their historic record. But few investments have the historic relevance of gold—or a history that goes as far back. That’s why so many investors flock to Gold IRAs in order to ensure...
Here are today's videos and charts.
Analytically, we continue to see a number of signs that give strong evidence that an important bottom is in the process of forming on both Gold and the Gold Stocks. Fundamentally, we believe the Trump Administration is very close to imposing trade tariffs on Chinese...
One of the primary keys to success in investment and speculation is picking the right stocks to trade. That’s no mean feat, as it takes great effort, expertise, and time to winnow the whole field down to the likely winners with the best fundamentals. Although deeply...
Within the US borders, the population remains largely ignorant of the true significance of the global currency reserve concept. It is of paramount importance, yet almost never discussed in the financial press. The public within the United States simply assumes the...
This “amateur cyclist’s” chart (I am anything but a cycles analyst) of the S&P 500 shows that the 12 month marker (C12) meant exactly nothing as the market remained firmly on trend, after brief pokes down in April and May.
After striking a bottom on June 6th in what I had been counting as a smaller degree ending diagonal this week, the XIV has continued to push higher, trading 12% higher from last week’s low into the close on July 13th. We are now once again within striking distance...
