When analysts forecast future asset prices they typically choose valuations that make sense in the context of current valuations. We could, for instance, easily imagine that a $100/share stock can trade up to $120/share. But when somebody comes out and says that...
Gold Editorials & Commentary
July 9, 2014
This statement may seem rather extreme. But to understand our meaning, you first have to assess the purpose of the capital markets.
I think that the Metals and Miners Bull Market has just began and we are very close to the point of recognition of a new bull market which should give us an idea of what to expect going forward. As we have already seen in the past the first phase of a bull market is...
July 8, 2014
We all know the S&P 500 Index has been on a 5+ year rally to all-time highs – thanks to ultra-low interest rates and the levitating wonder of “printing money” via QE – Quantitative Easing. Examine the following chart of the S&P for the past 20 years.
The London bullion market is an over-the-counter unregulated market and has had this status since the mid-1980s. The disadvantage of an OTC market being unregulated is that change often ends up being driven by a cartel of members promoting their own vested interests...
Not even the richest man in the world Warren Buffett could compete with GOLD & SILVER. And I perceive no reason why this relative performance will not continue in the future...especially with all major countries printing money like there is no tomorrow. Global...
Recent liquidity flows on the COMEX suggest the gold market may need to retrace some of the recent gains, before moving higher.
In the end game, truth is found only at the margins. In a credit-money system, over time the constant infusion of increasing amounts of credit will inevitably lead to higher and higher rates of inflation. Because common knowledge of this fact is not in the best...
July 7, 2014
Happy Independence Day America! Your markets are bullish… and over bought, over loved and running on increasing momentum.
If you did not know what a parabolic uptrend looks like, you now do.
World's richest man (Warren Buffett) is building and hoarding cash. Warren Buffett's Berkshire Hathaway’s cash hoard has surged 30% to nearly $50 billion since the end of 2011. One must ask WHY the World's richest man is piling up the cash hoard if all is hunky-...
July 6, 2014
Another minor top appears to be forming, preceding a correction which should exceed the former one in depth; but limited and very short-term (not lasting more than a few days). After this correction is over, another attempt at making a new high should occur.
We had a nice relatively quiet but solid week for markets and stocks for the most part, which is nice to see. You just never really know what a holiday week will bring but this one was good. We didn’t see a lot of large moves but leading stocks did hold up very well...
Until recently, the world has forgotten about gold and gold futures prices it would seem. A few years ago, all we heard about was gold and silver futures making new highs on the back of the Federal Reserve's constant money printing schemes. However, after a dramatic...
July 5, 2014
Long term – on major sell signal since Mar 2012. Short term – on buy signals. Gold sector cycle – up as of 6/20 This week’s COT data not available at time of update, last week’s COT data was already at levels of previous tops, therefore upside is limited and risk...
Pick your poison for knowing what news is impacting gold and silver these days. Both have been in year-long TRs, [Trading Range], within a broader down trend context. That may be in the process of changing, but change takes time to turn a trend.
July 4, 2014
Chart Analysis Gold Saucer Bottom, Silver RSI, Bad Assets, GDX Stress Test & GDXJ 20-dma Points the Way Charts Analysis via videos.
The precious metals complex, both mining shares and bullion, appears to be in the process of completing a major bottom extending back to mid-2013. The chart below depicts this action quite clearly in the form of what technical analysts refer to as a reverse or...
The most amusing question asked of the Jackass by clients and other people is when the system is going to break down. My usual answer is 2008, which causes a strange reaction, since a past date. Then they are given a tactful tongue lashing that they have failed to...
July 3, 2014
The Timmins gold district is by far the most productive within Canada’s prolific Abitibi greenstone belt. It has produced in the neighborhood of 70m ounces of gold, and operations are still going strong. Namesake mining company Timmins Gold is forecasting 2014...
As equities continued to rise during the advance into the 2007 top, I screamed from the roof tops that it was a bear market advance and that the efforts to prop the markets up only served to make matters worse. That certainly proved to be the case as those efforts...
The breathtaking rush into the perceived safety and stability of the Bomb er Bond markets which began at the depths of the 2008 Global financial crisis are in blow off mode. A recent Bank of international settlements annual report has been ignored due to its...
July 1, 2014
Has gold topped out, or is it beginning a new leg higher? A persuasive argument can be made that gold staged an upside breakout last night.
Gold prices remain well above the important support level of $1300 an ounce as geopolitical tensions in Ukraine and Iraq continue to spur demand. Also, despite the printing of trillions of dollars, the U.S economy tanked in the first quarter putting pressure on the...
Governments, such as the United States, United Kingdom, Europe, and Japan, spend their paper currencies as if tomorrow will never come. They act as if they believe debts can increase forever, more money will always be available, and debts can be rolled over forever...
This week I want to share with you a very important trading tip and strategy that can be applied to trading anything (stocks, commodity, currency, and index). Understanding how price moves is critical as a trader and investor if you want to be successful. So let me...
A few notes first off...the US Dollar Index has broken below 80.0, but for this to mean anything, the US Dollar must close below 79.40 on a weekly basis. The critical levels of upper support and resistance are so tight right now, that the volatility we have seen has...
Americans report feeling anxious and depressed about the lives they are living today. What they are actually feeling is ‘hyperinflation’ defined as a large increase in the money supply not supported by gross domestic product (GDP) growth. The results are an...
June 30, 2014
Let’s talk about Gold… Many analysts believe that the precious metal is DEAD due to its having fallen from a record high of $1900 per ounce to roughly $1200 per ounce today (a 36% drop).
In this Weekend Report I’d like to show you some charts on the different US stock markets and some so the stronger sectors within the US markets. It seems like no one believes this rally taking place in the US stock markets and many stock markets abroad. The mantra...
