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Gold Editorials & Commentary

April 8, 2014

The Miners Index has made a perfect Domed House and Three Peaks Chart Pattern. This pattern, discovered by a stock market analyst, George Lindsay, can be found in multiple timeframes. On the following charts you can see the model of the Lindsay’s Domed House and...

April 7, 2014

Recently I visited the breathtaking city of Hong Kong to speak at the seventh-annual Mines and Money conference, Asia-Pacific’s premier event for mining investment deal-making and capital-raising. During my time in Asia I had the additional privilege of addressing...

I have been revisiting estimates of the quantities of gold being absorbed by China, and yet again I have had to revise them upwards. Analysis of the detail discovered in historic information in the context of China's gold strategy has allowed me for the first time...

Think you could make it in business with a trillion dollar subsidy? That’s a very conservative estimate of what banks can borrow each year at almost no cost, courtesy of Fed easing. Returning the favor, the banks plow the funny money into Treasury paper, stocks and...

Gold's drop last month was, in part, thanks to comments from Yellen that the FOMC would look at raising interest rates by 2015, due to the economic recovery. The poor jobs data on Friday seemed to put this into question and sent gold for its biggest one day jump in...

We’re going to do something a little different for the Weekend Report this week. I would like to give the spotlight to Sir Plunger for his most excellent work on the Phase 3 for the PM stocks bear market. It deserves to be read by the members of Rambus Chartology...

April 6, 2014

On Friday, SPX tried to move through the top of its consolidation pattern and failed! This brought about a wave of selling which, by the end of the day, had created a key reversal. This type of pattern often signals the end of a trend and the beginning of a...

QE-3 began in September 2012 with the Federal Reserve committing itself to the purchase of $85 billion dollars a month of US Treasury bonds and illiquid mortgages from its favorite financial institutions – the big NY banks. And why not? They own the Federal...

April 5, 2014

Markets remained weak and choppy as we build out a base. we really only saw very quick opportunities or no more than 3 days of trend. It’s not an easy market, or one for the feint of heart and that’s why we’ve been in cash for weeks now as we wait for the easy...

Being successful in trading has a lot to do with finding the developing “story” behind the price structure of a market. We had good results in February because we keyed into some very important pieces of market information that would lead to a likely result for the...

Long term – on major sell signal since Mar 2012. Short term – on sell signals. Gold sector cycle – down as of 3/21, ending the up cycle since 12/27.

Historically the month of March is not very ‘gold-friendly’. April and May are more conducive to providing a rally.

April 4, 2014

Chart Analysis Gold Fibonacci, Silver, GDX & GDXJ via videos.

It’s been a while since we looked at Gold in a vacuum. We’ve focused on the gold stocks as they have led the sector. We covered Silver last week. Gold is more interesting because in its current state its more difficult to draw a strong conclusion. One could look at...

Gold stocks have lapsed back to despised status after late March’s sharp selloff. Thanks to their strong 2014 rally before that, traders were slightly warming to this abandoned sector. But despite the rekindled extreme bearishness, gold stocks remain the greatest...

A recent 60 Minutes television show interview revealed the long established electronic trading mechanism used to front run and carry out price mana

In recent years a good part of the monetary debate has become a simple war of words, with much of the conflict focused on the definition for the word "inflation." Whereas economists up until the 1960's or 1970's mostly defined inflation as an expansion of the money...

The shocks will be many as the USDollar struggles and falls off the global financial stage in full view. The desperate maneuvers like in Syria and Ukraine should be seen as last ditch efforts to save a dying system. For two decades the USDollar has been defended by...

Stocks kick started the second quarter with a bang but were the first few days the start of another rally or just an oversold bounce?

April 3, 2014

Day after day, gold trading has been, and continues to be, dominated by institutional trading in the “dark pools” where over-the-counter dealer and interbank activity goes largely unseen. Don’t under-estimate the influence of trading in the dark pools where “...

I don't follow tech stocks much but a recent look at valuations for some of the big ones gives anyone with common sense pause. I remember the last time internet-based companies with no earning had 30 billion plus market values. It didn't end well. I'm not a gloom...

So what is money? Money they say has three purposes – a medium of exchange, a store of value and a unit of account. Money is used to purchase goods and services, to pay debts and to pay taxes. At one time all people did was barter. They even used cows or sheep. The...

You may have heard the old adage: “What is worse than being lost? Not knowing you are lost.” In that same vein: What is worse than being at risk? You guessed it! Not knowing you’re at risk.

Zero Hedge has run an excellent article explaining the use of commodities, beginning with copper, to work around the Chinese government’s imposed capital control. Capital controls are intended to prevent arbitrage between the dollar interest rate and the yuan...

Recently the gold price hit a new seven-week low and hence posted its first monthly drop of 2014. Bullion is out of favour at the moment thanks to riskier assets such as equities gaining popularity. A rally in equities markets, in both 2013 and into 2014 has seen...

April 2, 2014

So far, 2014 has been a paradoxical year for gold. Many investors aren't even aware that it has rallied almost 8%.

Warren Buffett once noted, Gold doesn’t do anything “but look at you.” It doesn’t pay a dividend or produce cash flow. However, the fact of the matter is that Gold has dramatically outperformed the stock market for the better part of 40 years.

The gold sector is peopled by a high concentration of contrary indicators because it is a relatively (to the vast world of equities and bonds) small market that offers refuge from some of the damaging aspects of the spectrum of investment products that are supported...

Briefly: In our opinion short speculative positions in gold (half), silver (half) and mining stocks (full) are justified from the risk/reward perspective.

With April Fools’ Day behind us, it’s time to get serious about investing. Don’t be fooled by this week’s non-farm payroll report; nor by the assertion that the U.S. may have the cleanest of the dirty shirts. And certainly don’t be fooled into thinking the market...

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