Gold Inverse Parabola Bounce

MH2The Federal Reserve chairman recently talked about reducing QE.  The bond market was looking a little toppy before he spoke, but now it looks like a huge bear market may be startingThe technical indicators on this chart are showing major sell signals. This type of situation doesn’t happen very often, and if the technical continue to deteriorate, a bond market recovery may not occur unless the Fed actually increases QE.   The head & shoulders top formation is signaling a decline is coming, to the lower channel.  Note the head & shoulders top pattern.  The target is about 130.
An institutional loss of confidence in the world’s largest market appears to be gaining a lot of momentum.

The gold market is certainly washed out, and hopefully ready to move higher.  Price bounces from downward parabolic moves (inverse parabolas) tend to be dramatic.
Once gold breaks free from the grip of this powerful inverse parabola, I am projecting a violent move to the $1580 area[Read more...]

“James Bond’s Golden Gun” – Stewart Thomson

imagesSubmitted by Stewart Thomson

I refer to gold bullion as “Queen Gold”, and the US T-bond as her secret agent James T. Bond.  At some point, Sir James is going to outlive his usefulness to your queen, and a great bear market in bonds will unfold.

Specifically, I believe that the pressure put on all fiat currencies by the global tidal wave of QE, will make it appear that hyperinflation is a “done deal”.  I don’t think you are going to experience full hyperinflation in this crisis, but you’ll get something very close to it.

As that happens, central banks around the world will likely begin raising rates aggressively, to combat the severe institutional loss of confidence in all fiat currencies.  So, should you hold & buy gold now, or wait until 2015?  The answer is that you should buy now. [Read more...]