Donald Trump’s trade policy is likely to spark higher consumer price inflation, and that has ramifications for gold and silver prices. Regardless of where investors stand regarding the president’s plan to make Mexico “pay” for the border wall, if he is successful in...
Gold Editorials & Commentary
January 30, 2017
2017 could be the year that the euro collapses according to Joseph Stiglitz writing in Fortune magazine and these concerns were echoed over the weekend by former Bundesbank vice-president and senior European Central Bank official, Jürgen Stark, when he said that the...
Throughout 2016, we stated we did not expect much from gold, and we stuck to this forecast, even though many experts went out of their way to report that gold was ready to soar to the Moon or even to the next Galaxy. In fact, since 2011, we have continuously said...
After many false promises and one false start, it is becoming evident that 2017 will be the year the Federal Reserve finally begins down the road towards interest rate normalization. Therefore, it is likely that Ms. Yellen will cause bond yields to rise this year on...
Week one of the Trump Presidency and already it is mired in controversy. From “fake news” to “alternative facts” we are quickly learning there is an “alternative universe” that apparently the leader of the “free world” is occupying. Speaking of “free world” we...
The Trump Doctrine wants to fix the trade imbalances which America runs with many of its trading counterparts (like China, Mexico, India, etc.). But this is nearly impossible without a return to a settlement mechanism like a gold standard or a gold exchange standard...
January 29, 2017
SPX has filled the P&F count which was established last February, at the 1810 low. It would now be normal for the upside momentum derived from last week’s run-up to 2300 to dissipate, as a distribution top is being created. This, could take a couple of weeks...
How to read gold’s price chart? That is an interesting topic which is subject to a lot of controversy. That is because gold is driven by a multitude of factors. Looking carefully at gold’s chart, there are quite some insights to derive. We look at 10 key insights...
The latest Commitment of Traders (COT) report showed a drop in both speculative longs and shorts for the week as gold meandered to end the COT week (Tuesday to Tuesday) essentially unchanged. The increase in speculative "spreading" positions but drop in both long...
You know the stars are brilliantly aligned when the Dow Jones Industrial Average, (aka "that index at which our parents look"), finally satiates the FinMedia's suspense by crossing the 20k level at practically the same time the so-called Doomsday Clock is nudged...
Stocks continued to show nice strength as we get deeper into earnings season. They just look, and act great! We have a healthy sized group of top callers every day, which is what we need. It’s when everybody says we will go higher that I’ll get worried.
Well, they finally did it! This week the bulls took the Dow Jones Index up to, and then closed above its 20K line on Wednesday, Thursday and Friday. Bravo Zulu to our horned brethren in the market.
January 28, 2017
Gold sector is on a major buy signal and short-term is on buy signal. Cycle is up. Waiting for trendline support and set ups. Silver is on a long-term buy signal. Short-term is on buy signal. Silver is more volatile than gold, manage your risk.
January 27, 2017
The new US Administration has taken over with the conviction that they will “make America great again”. I really wish they will succeed because a strong US would be good for the world. Sadly, the odds of achieving that admirable objective are totally stacked against...
Here are today's videos and charts.
As everyone already knows, the Fed has finally hiked its interest rates for the second time in a decade and for the first time since December 2015, when it ended the zero interest rate policy. The chart below shows the current level of the effective federal funds ...
In case you’ve been hiding under a rock, the Dow Jones Industrial Average reached 20,000 earlier this week for the first time in its 132 year history to much media fanfare.
January 26, 2017
One of the immutable pillars of strength of any nation is its currency. Indeed the currency is the life blood of any economy. Unfortunately, the Euro has been suffering since 2008 to date. Moreover, its value recently weakened to a 14-year low…and projects a gloomy...
Switzerland’s gold bullion exports to China saw a huge jump in December, climbing to 158 tons versus a much lower 30.6 tons in November…a jump of 416%.
We see the forensic "finger prints" all over the economic and financial data that the Federal Reserve through a proxy likely Citadel Capital (or the Fed's CBOE Volume Options Agreement) has highly likely been buying the US equity market since its QE 3 "TAPER" ended...
I would like to update the Basic Materials sector as this area now looks like it’s ready to resume its bull market. Also with the stock markets breaking out today, especially the INDU, this adds another layer of confirmation that the breakout is the real deal. As we...
Commodity investors have had to endure a dry spell for a while now, but those days are starting to look as if they might be behind us. We see encouraging signs that a bottom has been reached and a new commodities super-cycle has begun, as global manufacturing...
Sound money principles can serve to help grow the economy and restrain government. The political class, however, doesn’t particularly want to restrain itself. Washington, D.C. is addicted to the easy money policies that have enabled $20 trillion in national debt...
According to historical official records, the price of gold should be 20 times higher than the current market price. While many precious metals investors have heard about the revaluation of gold to back the outstanding fiat currency, my analysis focuses on monetary...
January 25, 2017
The price of gold fell from $ 1,876 to $ 1,138 an ounce (31,103 grams) or -40%. Is the price of gold in the trough?
Bulls and bears in this complex probably need a Xanax by now. This market has swung so dramatically over the last several years that many are probably so whipsawed that they don’t know which way is up. But, for now, the market is setting up in a manner to take us...
Fiat currency debasement and failure is why gold has survived and thrived for thousands of years and indeed in recent years. It is why bitcoin is becoming more popular, with its growing market cap and ever-expanding ecosystem.
January 24, 2017
Let’s start by looking at a weekly chart for TLT, 20 year bond ETF, which shows it built out an H&S top last summer. That H&S top is a reversal pattern that showed up at the end of its bull market which has been ongoing for many years. There is a big brown...
Forget about NAFTA or OPEC or TPP or crowd size or hand size or any other acronym or stat or concept that obsesses the financial press these days. Only two numbers actually matter. The first is $20 trillion, which is the level the US federal debt will exceed...
Gold and silver are off to a good start in 2017, advancing again last week into Donald Trump’s inauguration. If recent history is a guide, this year could bring some nice gains in precious metals. Bloomberg reports there have been gains in the gold market in the...
