The news is out, and the news is good; the IMF has decided to include the yuan in its SDR virtual currency basket. Donald Trump and other “protectionists” have argued that the yuan is undervalued against the dollar. In contrast, I’ve argued that it is overvalued,...
Gold Editorials & Commentary
December 1, 2015
The International Monetary Fund has officially designated the Chinese Renminbi/yuan a global reserve currency. What does it imply for the gold market?
Black Friday was the worst day for gold prices in three years with a dip to $1,052 an ounce. That’s almost exactly the bottom in prices that many chartists have been saying has to occur before a price rebound.
“The U.S. Mint’s sales of American Eagle coins surged in November, with gold nearly tripling month-over-month and silver already reaching a new annual record as bullion prices fell to multi-year lows” reported Reuters.
Last week it was speculated that with three major markets, with the dollar as their common factor, resting on significant long term support, there could be a change in trend – a change that could perhaps be the long-awaited bottom in the bear market in the precious...
November 30, 2015
The U.S. Mint has sold out of its 2015 one-ounce American Eagle gold coins, according to Bloomberg. In an email statement this week, the Mint confirmed that inventories have been depleted and no additional 2015-dated coins will be produced.
European Central Bank President, Mario Draghi, has been trying to lower the value of the euro by promising to pursue inflation with a vengeance. His inflation rhetoric was stepped up during a speech he gave to Germany on November 20th of this year. In that speech Mr...
While gold prices continue to languish in the doldrums and are on course for their worst month since 2013, global demand and especially Chinese retail, investor and official demand continues to remain very robust. Indeed, China looks likely to see a new record...
On Friday, the Shanghai Composite Index dropped 5.5 percent. What does it mean for the gold market? China's stock market had been rising steadily since the end of August, but it plunged suddenly on Nov. 27.
It has been said "truth" is a funny concept. What is truth to one may not be to another because opinions vary from one person to another. "Truth" in this context consists of one's opinion or point of view. By this definition truth can be altered, changed or even...
The battle lines are drawn and the fight for supremacy is drawn out along two lines. The first is the 100 line on the US Dollar Index. Since the 13th November, the dollar has meandered between 99 and 100 trying to push higher.
November 29, 2015
Ben Franklin used to say that “pain instructs.” But, based upon the continued unjustified faith by investors in what has been published these last 4 years as “analysis,” I am not so certain this maxim has application within the metals world.
SPX is in a short, sideways trend from which it could emerge in either direction. The daily indicators give it a bullish bias, but the hourly suggest that there could be a little more consolidation/correction. In any case, the 2085 level is the critical support...
Over the centuries the markets have provided some outstanding observations. One of the great bubbles blew out in 1873 and in classic fashion crashed in the fall. At the worst of the crash, The Economist wrote: "While the panic may be over, the results of the panic...
Three weeks ago I warned my subscribers that a Mars aspect on November 12th (Mars conjunct Venus in Libra) was indicating an explosive situation ahead, including possible terrorist activity. That very same week on November 13th, the Paris attacks occurred.
Save for Monday (November 30), we've 11 months of 2015 now in the books. And upon digging into our toolbox of "phamous phrases", there are two which come to mind in reflecting on the year-to-date: 1) "Change is an illusion, whereas Price is the truth", and 2) "The...
The year 2015 is coming to an end and we’ve seen a lot this year. Not only did we see a much stronger dollar, the gold price also weakened despite the dire economic situation in, well, everywhere in the world, terrorist attacks and additional tensions between a NATO...
Black Friday is a big and usually good trading day for the retail sector; however, for gold prices it was a punch on the nose. Gold suffered a loss of $14.30 to close at $1056.10/oz, its lowest level since early 2010.
A great week for markets and leading stocks, which are set to breakout higher and finish off 2015 strongly. There is easy money out there, just not in the metals which continue to be battered as we near the major support areas I’ve taken so much flak for talking...
November 28, 2015
Gold sector is on major sell signal. Cycle is down. We could see a bounce or counter trend rally in coming days, but a tradable bottom is not in sight yet.Silver is on a long-term sell signal and investors should be in cash or short. Short-term is oversold and a...
The Key Principle of this market analysing discipline we call Chartology : What makes the markets go up and down and sideways is investor’s and trader’s emotions.
If the end is not near, it is certainly nearer. We are not calling for an end, for that is up to the market. All we, or anyone can do is observe developing market activity and make a determination as to when a trend is changing.
November 27, 2015
Technical analysis via videos.
For six years, the world has operated based on faith and hope that Central Banks somehow fixed the issues that caused the 2008 Crisis. All of the arguments supporting this defied common sense. A 5th grader knows that you cannot solve a debt problem by issuing more...
The prevailing valuations in the lofty US stock markets are increasingly becoming a bone of contention. Wall Street calmly asserts stocks are reasonably valued, since it has a huge vested interest in keeping people fully-invested. But with valuations soaring...
If you listen to the top central bankers of the world talk for long enough you will come away with the impression that central banks are attempting to give us “price inflation”, as if rising prices were beneficial. However, nobody wants to pay more for stuff. In...
First I would like to thank Haywood Securities for the gracious reception last evening. Right around the turn of the century (sounds like a long time ago) I toured the South African countryside on behalf of GATA. It was in early 2001 ahead of GATA's conference in...
Christine Lagarde and the IMF Executive Board recently announced their intention to include the Chinese renminbi (RMB) in the Special Drawing Rights’ (SDR) valuation formula. This would bring the Chinese currency into an exclusive group – alongside the US dollar,...
“I can prove anything by statistics except the truth” – George Canning. Canning’s aphorism is as valid today as when he was Britain’s Prime Minister in 1817. Unfortunately, his wisdom is ignored completely by mainstream economists. Nowhere is this error more...
Fed officials have recently given several speeches. What can we learn from them? This was a busy month for U.S. central bankers as they tried to telegraph their intention to hike interest rates in December.
