The latest edition of Sprott’s Thoughts explains why we’ve already had the technical confirmation signal that a new bull market in the precious metals is in play:
Is the gold and silver bull roaring back to life?
I believe the recent long decline to be but a reaction in the giant bull gold market…
Today is gold options expiry day on the COMEX. As expiry day approaches, gold has a tendency to trade sideways to lower.
The most successful investor now is the one who dials down their obsession with predicting the next price move, and simply pours themselves a glass of fine bull era infrastructure construction wine.
A major decline in oil prices that causes a collapse in global stock markets while Indian gold demand surges, is likely to entice those money managers to recommend gold stocks to their clients.
As the dollar has rallied, the price of silver has declined significantly, and the gold to silver ratio has soared to the 70 – 80 area.
What are the implications for silver, if there is a global stock markets crash caused by deflating oil prices?
Jay Taylor doesn’t beat around the bush—he believes the price of gold is being suppressed to support the U.S. dollar and underwrite American foreign policy. But the publisher and editor of J. Taylor’s Gold, Energy & Tech Stocks and host of the radio show “Turning Hard Times into Good Times” thinks that this suppression will fail, just as it did in the 1970s, when gold rose over 2,300%.
In this interview with The Gold Report, Taylor urges investors to stay as liquid as possible so they can invest in undervalued companies poised to explode when the value of gold is reasserted.
Get Ready for a Fall 2014 World Commodity Bull Market Breakout!
Cycle analysis indicates the third and final 7-year tidal wave of the 21 year Grand Tsunami Gold Bull Market cycle began this past July 2014; Gold has been consolidating in the 7th year of sabbatical rest within a Symmetric Triangle and one final push lower is still possible before a breakout arrives this fall 2014 that lead to World Commodity Bull Market Breakouts!
There remains a very probable possibility of a commodity inflationary price spike and should this inflationary spike occur, Gold would easily achieve $2000 by year end.
If no inflationary spike arrives in 2014 (as cycle analysis favors it will occur) expect Gold to still close the year closer to $2000 than $1300.
The 7-year Gold cycle dictates a THIRD Gold Bull Market breakout comes this fall 2014 and runs for the next 7-years into the year 2020-2021! This THIRD and final Bull Market cycle will be nothing like the prior two 7-year cycles. Do not expect either of the 2 prior 7-year cycle tops to match the THIRD. In the end, the THIRD cycle will once again add up to 7-years and all 3 cycles will add up to one grand 21-year tsunami as Gold hits $10,000+!
The final summer low in August 1, 2014 and ‘Buy-of-a- Lifetime’ has come and gone and the rise to $2000 Gold by year end & $10,000+ by year 2020/21 has begun!
On August 1, 2014 dropped an additional $12.50 into a FINAL Summer low of $1281.00 …
The 2014 Summer Gold Low is COMPLETE!
$1300 Gold is soon to be history with Gold Spiking into $2000 before year end when the third and final 7-year Gold cycle into 2020/21 and $10,000+ gets under way!
Has gold topped out, or is it beginning a new leg higher?
Take a look at the hourly bars gold chart below. A persuasive argument can be made that gold staged an upside breakout last night.
The range of $1305 – $1326 was decisively penetrated to the upside, and gold traded as high as $1335.
Monday’s close was critical, because it was not just the end of the month, but the end of the quarter.
Junior gold stocks staged a spectacular ending to the first half of the year, on massive volume.
The chart suggests the second half of 2014 will be even better!
Gold stocks have defied the odds to blast higher in the early summer doldrums. Investors have flocked back in recent weeks, their heavy buying driving record June-to-date gains.
If this newfound momentum continues, gold stocks have the potential to achieve a record summer.
On June 4, 2014 Gold made a Cycle bottom, turned up on June 5, 2014, exploded higher June 19 post-FOMC. June 27, 2014, Gold completes its Cycle Turn Date Top with a down Cycle into the summer low STARTING on July 1 – 2, 2014!
This June 2014 rally has been nothing more than a short squeeze & ‘False’ Breakout!
After a 3-Year Bear and a Final Summer corrective Low ahead, none but the Resolute Bulls will be left standing to experience a Moon Shot to $2000 by year end! …and ‘year end’ may not exactly mean the end of the year.
Cycle work allowed me to called then Silver $49 top, the $1900 Gold top, the June 28, 2013 Gold BOTTOM within 2-hours, the December 31, 2013 retest and higher low.
The coming summer low will be the FINAL ENTRY LOW and the Back-Up-The-Truck ‘Buy-of-a- Lifetime’ before a Moon Shot to $2000 by year end!
Legendary gold expert Jim Sinclair sent an email update to subscribers this weekend, detailing 30 reasons why the nearly 3 year bear phase in gold & silver ends this summer.
Sinclair, who called the end of the last secular bull market in gold the day before the top was placed (and worked overnight selling his entire position) and also predicted the current secular bull at the bottom nearly 15 years ago, believes the next leg in the bull market in gold which will ultimately take gold to new all-time nominal highs (Sinclair believes possibly as high as $50,000/oz) begins THIS SUMMER.
Sinclair’s full MUST READ alert is below:
Jay Taylor understands why investors in gold and gold equities are consumed with caution. But the publisher and editor of J. Taylor’s Gold, Energy & Tech Stocks and host of the radio show “Turning Hard Times into Good Times” urges them not to lose sight of the big picture.
The big, bull-market picture. Gold juniors with cash and good projects are trading at tiny fractions of their worth. But not for long. In this interview with The Gold Report, Taylor argues that we are on the cusp of a bull market for the ages and suggests eight junior candidates for mind-blowing multiples.
The West is still a mover of the gold price, but no longer the prime mover. While interest rates and inflation numbers are still very important drivers of the gold price, the world has essentially entered a “gold bull era”.
This era is themed around gold jewellery demand that should grow relentlessly for decades. It could soon totally overwhelm mine and scrap supply.
Gold jewellery plays a highly significant role in Eastern culture and religion, and bank economists continue to underestimate the enormous monthly tonnage imports of Chindian (Chinese and Indian) gold dealers. One upside surprise seems to follow another.
Demand grows relentlessly, because Chindian industrialization grows relentlessly. It’s an enormous multi-decade process that involves more than two billion citizens, who are all potential gold buyers.
You scan the menu and notice that the prime rib and the hamburger are the same price. What do you order? The precious metals market isn’t so different, according to “Mexico Mike” Kachanovsky, consultant to hedge funds and mining companies and contributor to SmartInvestment.ca. The market has pulverized the price of top-notch mining stocks to the same level as the struggling names. So, which would you buy? In this interview, Kachanovsky reveals how to find the prime rib of the gold market.
Money manager Peter Schiff has a read on gold short sellers. Schiff says, “Of course the short sellers never had the gold to begin with! They’re selling gold they don’t have, and I think the shorts are getting a little bit nervous, but they are going to get a lot more nervous as we turn up the heat here. Gold is now above $1,300 (per ounce).
I think it’s going to be above $1,400 before they start to panic a little bit, and I think that’s great.” Schiff goes on to say, “I like the fact the market is moving up and nobody is buying it, nobody is paying attention to it. If they are, they are dismissing it. People think this is a head fake or a dead cat bounce. Instead, it’s the resumption of the (gold) bull market.”
On gold mining stocks, Schiff proclaims, “The valuations are phenomenal in the mining sector because everybody assumed that the price of gold was going to keep falling, and those false assumptions were built into these share prices.
Peter Schiff’s full thoughts on the coming tsunami of inflation, and the resumption of the gold (& silver) bull markets is below:
Late in the fall of 2013, I predicted that the Fed would begin to taper QE, and keep tapering until it was gone. I stunned a lot of investors, by suggesting that this “taper caper” would be bearish for the Dow, and bullish for gold and gold stocks.
During 2014, I expect Dr. Janet Yellen to continue (and possibly accelerate) the tapering process that Dr. Bernanke started, creating more selling in the Dow, and more buying in gold!
In this excellent market update, Tekoa da Silva discusses where to from here in gold and silver, and whether the metals will be taken further down with the general equities in the event of a fall 2013 market crash.
Tekoa points out the massively bearish sentiment currently permeating the precious metals market, and the fact that the bearish calls and forecasts always grow the loudest and largest near the ultimate bottom.
Lots of people are comparing today’s gold market to the 1970’s. Gold shot up to nearly $200 per ounce and crashed 9 months later to near $100 an ounce. Of course, gold had an historic rise to $85 per ounce after that wicked pull-back. Some, such as economist Nouriel Roubini, say “the gold rush is over,” and the seventies are not going to repeat. The debt of today is greater by orders of magnitude from the 1970’s, and there is no end in sight. That means gold has only one way to go (in the long term) and that’s up.
We had a national debt of less than $1 trillion when Jimmy Carter left office. Today, it is nearly $17 trillion, and the so-called debt ceiling is going to need to be raised–again. Debt in the U.S government is exploding. So is debt in the rest of the Western World, just look at Europe and Japan.
Derivatives were virtually nonexistent back the 1970’s. Today, the official total of these debt bets is around $700 trillion, and some say it’s more than twice that much. Pensions didn’t have funding problems back then. Today, they are at least $1 trillion dollars in the red. You can say the same thing for student debt—also $1 trillion in the hole.