As the year 2013 comes to a close, the Western super-crisis has entered a lull period, and an Asian citizen gold demand era begins. It could be said that your “Queen Gold” jockey is changing horses in 2014. She’s moving from a Western racehorse… to an Asian Clydesdale. In the biggest picture, I think this means that Western precious metals investors are going to have their golden cake, and eat it too!
If gold and silver are transitioning from a Western-centric bull market to an Asian-centric bull era, then super-sized chart patterns should appear in these markets, and this appears to be the case with silver.
The ratio chart shows a gigantic head and shoulders bottom pattern in play, and it suggests that in 2014 silver should begin to outperform the T-bond for many years, and potentially for decades. [Read more...]
Rick Rule: “Every Billionaire I Know Took Bets Contrary To Conventional Wisdom At The Time That Were Highly Risky”
Eric Sprott is making a bet that we’ve reached the capitulation point in precious metals and that the precious metals will pivot sharply higher in the next 12 to 18 months. He rightly points out that by putting sort of $50 million into this bet…he might lose 50% of $50 million or $25 million…or if he is right about the timing of the move in precious metals and the quantum of the move of precious metals, he could easily turn that $50 million into $500 million. A bet where you have one chance of losing half your money and another chance of making 10 times your money to the extent that you can afford to make that bet—that’s how you build businesses like Sprott.
I’ve had the good fortune in my life to know 12, 15, 20 self-made billionaires and what segregates the billionaires, what segregates the people who get that last digit—is guts. You have to take risks…Every billionaire I know has been willing to take bets that were contrary to conventional wisdom at the time that were highly risky. You have to see a situation that you think has outsized possibility of reward and you have to really, really, really swing for the fence.” [Read more...]
The move in gold can be very quick. I’ll give an example; We hit lows in July of this year and then in the month of August, metal prices turned around. The price of gold was going up but the mining stocks just took off. There were gains of 25%, 75%, 100% in the sector in the space of less than 20 days.
It illustrates how we can move from a market that’s operating basically on a no-bid basis where no one wants to buy, to suddenly getting into a space where no one is offering any stock and prices are forced up as a result of that. I’m quite convinced we’re going to see that again in the not too distant future, and that’s what makes it exciting in this space.” [Read more...]
Already beleaguered, gold suffered another sharp drop this week. When the minutes from the Federal Reserve’s latest policy meeting implied it might slow its QE3 bond-buying campaign “in coming months”, futures speculators responded with heavy selling. But their extreme gold bearishness is highly irrational, they are missing the forest for the trees. Taper or not, quantitative easing remains super-bullish for gold. [Read more...]
“If you really have conviction for this sector, Then you have to review—have the fundamentals changed? And if the fundamentals haven’t changed, that’s a good reason to stay. Another reason to stay, is that the best time to buy is when nobody wants it. We’re certainly in the case right now in the mining shares, where really—nobody wants them. So that’s a great time.
In all [bull] markets…there gets to be an acceleration point, where it becomes the ‘got to have’ investment…and once that happens you get an acceleration in price to the upside, and I really expect that to happen in the metals. It’s not here, it’s not now—but I’m very confident it will take place.” [Read more...]
Rick Rule: “Eric Sprott…is as aggressive as I have seen him since the year 2000…he is as is his style, the style that has made him a billionaire, very aggressively going into the marginal junior producers…companies that barely make money at $1400, but would be making $800 or $900 an ounce if the gold price went higher….
Eric believes that gold within 12 months will certainly be above $2000…[and] that this is the year where his portfolio will see ten to fifteen–10 to 20 baggers.” [Read more...]
Even Dennis Gartman, not known to be a Gold Partisan, can recognize Investment-Significant Market Realities when he sees them:
1) Gold is now launching into a Bull Trend, but a
2) “material seller” has been “stopping its advances each day”
While he has not been so candid in identifying that “Material Seller” as The Cartel as Deepcaster and others have long ago, he does usefully make the point that:
3) Gold, even though launching into a Bull Trend is still vulnerable to Take-down by that “Material Seller”
But the Takeaway Market Reality from all this is that it provides an Opportunity – we know Gold is going higher, so use the Take-downs as a Buying Opportunity. [Read more...]
Core gold positions should never be sold, regardless of your price targets or fundamental scenarios.
Gold is arguably the ultimate asset, so it probably can be viewed as wealth, rather than a tool to get wealth. Key core positions that are accumulated on severe price weakness should be held with an iron hand.
In contrast, trading positions could be “offloaded” at $1411, $1440, $1471, $1523, and $1577.
I have no idea if gold and silver have made an “ultimate bottom” or not, and I really don’t think any wealth is built by getting overly-obsessed with that question.
If gold has bottomed, that’s great news. If it hasn’t, investors can use profits booked now to buy lower prices, with some degree of comfort, rather than selling in terror.
What started out as a quiet and sideways week in the metals and miners, finished off explosively!
Technical gold trader Gary Savage noted in weekend commentary that Friday’s explosive finish in gold confirms yet another trading cycle, which may assault the 200 day moving average at $1500 oz. within the next two weeks. He further added that as a result of the strength of this close, he also expects a 10%-15% move in the miners this week!
We are witnessing A Historic Moment (and launchpad) For The Metals & Miners! [Read more...]