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! [Read more...]
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. [Read more...]
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! [Read more...]
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. [Read more...]
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. [Read more...]
The propaganda has turned openly laughable. On the popular major financial news networks, the recent decline in the so-called Gold price has prompted quite the parade of clowns on the ship of fools to trumpet nonsense. The widely published and posted Gold price is dominated by futures contracts, and thus as corrupted as meaningless.
The entire global financial structure is crumbling before our eyes. The gang of central bankers has applied their monetary policy for four and a half years since the implosion of Lehman, Fannie Mae, and AIG. The first is dead, while the second has transformed into a sanctioned subprime lender again, and the latter is a sinkhole. The deceptive messages are shrill, acute, and motivated from desperation. The West cannot solve its problems, hardly properly described as a financial crisis anymore, under the current framework bound to the fiat paper currencies.
The global monetary war is heating up notably. The heavy liquidity has caused unfixable distortions in every conceivable bond market niche. The new and better debt devices have been exposed for their shams. The leading central bankers lost their credibility long ago. The weakness is as broad as it is deep, a reliance upon paper wealth and paper structures and paper contracts, during a time of zero bound interest rates and unfettered hyper monetary inflation to cover the debts. Almost no foreign USTreasury Bond buyers exist anymore.
The US has become Weimar Amerika, a fascist enclave. [Read more...]