In his latest video update, Tekoa da Silva discusses gold and whether trying to time/capture the bottom perfectly is advised in the wake of a 2+ year correction, and re-examines the fundamentals, which are only growing stronger with every passing month.
Tekoa da Silva’s full update is below: [Read more...]
Charts Of Interest: 2nd Largest Month Ever For Chinese HK Gold Imports, West/East Drawdown Continues…
As hedge funds reduce gold bets to 2007 levels, and Barrick Gold prepares to forward-sell future gold production (halted in 2009 for nearly $6B charge), one might think that all the world’s gold is going “back on the shelf” in terms of both lower prices and greater supply availability. But as widely circulated within the ‘church’ of gold this year, is the story of lower prices and deafening Eastward march of physical inventories.
Here are two updated key charts representing the movement. [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...]
Bill Gross: “Investors Are All Playing The Same Dangerous Game—That Depends On Perpetual Cheap Financing”
Investors are all playing the same dangerous game that depends on a near perpetual policy of cheap financing and artificially low interest rates in a desperate gamble to promote growth. The Fed, the BOJ (certainly), the ECB and the BOE are setting the example for global markets, basically telling investors that they have no alternative than to invest in riskier assets or to lever high quality assets. [Read more...]
Gold Mining Executive: “You Have To Be Able To Survive The Lows In Order To Reap The Benefit Of The Highs”
When we’re in an up-cycle, people can never see a reason why it’s going to go down but it always does. When we’re in a down-cycle, people can never see a reason why it will go up, but it [always] does.
This has been a good cycle. 2013 is the first year in a while that we’ve had a down-cycle in the gold price and of course, people are ready to bail out. So we’ve had a pretty good run but I don’t think it’s over yet.”
In order to operate successfully as a miner, ”You have to be able to survive the lows in order to reap the benefit of the highs.” [Read more...]
“I think the tapering talk will continue, but I’m skeptical that we’re going to see any tapering other than perhaps one token attempt to still their critics by making some small cutback…
The money printing that’s been done, and the levels of irregulation that’s being imposed on the economy, on businesses and entrepreneurs is such that the inflationary potential is there and it will assert itself. -Don Coxe [Read more...]
Indian Gold Dealer: “Gold Demand Cannot Go Down; By End Of December, All Jewelers Will Need To Replenish Stock”
When asked his thoughts on reports of Indian consumers switching to silver in response to high gold premiums, the head of operations at one of Inda’s top bullion dealers, Vishal Vyas concluded that,
Whenever there are gold shipments available…say half a ton or 300-400 kilos, the premium comes down…but otherwise again, the premium will go higher…because there is not a constant supply. There are tight supplies.
I personally feel that silver has become the poor man’s gold for investment, for short-term investment especially…& people have shifted to silver up to a certain extent, but gold is gold. Overall demand cannot come down. Now is the festive season where people will start buying gold in the form of jewelry. So by the end of December, all jewelers will need gold to replenish their original stock and get new jewelry manufactured, because there will be huge sales happening in this wedding season.” [Read more...]
Marc Faber: “We Have A Lot Of Bearish Commentaries About Gold, But The Fact Is…It’s Bottoming-Out Here”
In a recent interview with Barron’s Roundtable, Marc Faber noted that: “We have a lot of bearish sentiment, [and] a lot of bearish commentaries about gold, but the fact is that some countries are actually accumulating gold, notably China.
They will buy this year at a rate of something like 2600 tons, which is more than the annual production of gold. So I think that prices are probably in the process of bottoming out here, and that we will see again higher prices in the future, and I think gold shares are also not terribly expensive at this point.” [Read more...]
Shared by Nick Laird at Sharelynx.com, is an updated chart illustrating the long-term decline of the US dollar’s purchasing power when compared to gold.
Over this nearly 300 year period, $1,000, which initially purchased nearly 52 oz.’s of gold—finished the period with a purchasing power rate of 0.76 ounces, or roughly 23 grams of gold: [Read more...]
For those of you trading this bounce out of the daily cycle low in gold I would suggest continuing to hold positions for now, but I would sell ahead of next week’s FOMC meeting. Any large heavy volume sell off at this point, especially in miners, I would immediately take as a sign that the manipulation is ready to resume and the dollar ready to rally. Any kind of reversal similar to what happened on August 27 would be a strong signal to exit immediately.
For those of you sitting on the sidelines, and I am one of them, there’s no need to fret about missing this particular daily cycle rally. If the bubble phase in gold has begun and June 28 does turn out to be the final bottom, there will be months and months of time to make money. Missing one small little chunk at the beginning while we wait for confirmation that the decline is indeed over will be meaningless in the long run. [Read more...]
ECB Head Mario Draghi On Gold & Banking; Admits “Central Bankers Are Powerful—They Are Also Not Elected”
When asked by Tekoa da Silva his thoughts on gold as a reserve asset, the European Central Bank’s Mario Draghi responded:
“Well you’re asking this to the former Governor of the Bank of Italy, and the Bank of Italy is the fourth largest owner of gold reserves in the world, which is out of all proportion to the size of the country. But I never thought it wise to sell it, because for central banks this is a reserve of safety, it’s viewed by the country as such. In the case of non-dollar countries it gives you a value-protection against fluctuations against the dollar, so there are several reasons, risk diversification and so on. So that’s why central banks which have started a program for selling gold a few years ago, substantially I think stopped…most of the experiences of central banks that have leased or sold the stock of gold about ten years ago, were not considered to be terribly successful from a purely money viewpoint.” [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...]
In a release issued today by the Board of Governors of The Federal Reserve System, were details on the Federal Open Market Committee (FOMC) statement following the September 17th-18th meeting.
Within the notes a few key statements on inflation were made, which may provide clues as to the directional “bias” of commodity and share markets this winter & spring.
Bernanke’s Fed indicated that inflation rates are simply not high enough, in that, “Mortgage rates have risen further and fiscal policy is restraining economic growth. Apart from fluctuations due to changes in energy prices, inflation has been running below the Committee’s longer-run objective, but longer-term inflation expectations have remained stable.” [Read more...]
Gold has gone from $250 to $1900 and they’ve been printing willy-nilly the whole time. So gold is irrelevant to the central banks. But it is in a bull market, a secular bull market because of that printing.
But in terms of the manipulation–as far as I can tell, all the corrections up until about 2013 looked normal to me for a regular bull market with periodic profit-taking events. It all looks normal. Sure, you get some short term manipulation around options expiration but nothing really looked out of the ordinary to me until we got to the QE 4 announcement in December, when basically everything in the world started going up as it should when the world has been flooded with liquidity- except for gold. [Read more...]