“Gold has been the tell for the bear market and my work leads me to believe the bottom is ahead and not behind us”
Article with great gold charts…
http://www.safehaven.com/article/35874/golds-volatility-and-other-things-to-watch?utm_source=mcverryreport.com
daily higher highs and lows, weekly the same, bullish until the other for now. Hard not to find a commentator on either bull or bear. Price is everything, jmho
I hope you guys are right about this. I’ve got a chunk of cash ready to drop on some undervalued gold mining stock. However, the fact that I’m waiting for this drop may indicate that the bottom is in. I’m usually not fortunate enough to get in near the bottom. I have some AUY stock that I bought at a seven handle, it now has a four handle. I’m hoping to buy more when it has a two handle, but we’ll see if that happens. The gold stocks were recently hammered below where they were when gold was under $700 so It’s difficult to see them going too much farther.
Hello Neil
welcome to the discussion
I still have Brex Certificstes
🙂
lol. On that note, maybe I should just put that cash on the blackjack tables instead.
I agree with Jordan that the bottom might not be in yet, but also that gold is in a long term bull market. Yes, I think monetary policy is affect inflation in the long run. And yes, I think the Dow/gold ratio will return to near 1. I personally think that the Dow and gold will meet much higher than people believe. That bullish chart that Rambus showed recently of the equity markets looks bullish because of monetary policy, not economic fundamentals or company balance sheets. Yes, equities will likely continue to rise, but when gold and the miners finally begin to rise along with equities, the former will outpace the latter tenfold. When will this occur? When the collective mind of the financial world realize that the Fed’s easy money policy is permanent. When that happens, they will prefer commodities and PMs over equities. Then prices of basic consumer staples will rise and even the average Joe will start looking for an alternative to the dollar for keeping his earnings. Could this shift be a year or two or three away? Certainly. But it will happen when it is time to happen. The laws of nature do not always manifest themselves immediately. When an earthquake occurs 20 miles off the coast of an island, the tide actually goes out farther than usual before the tsunami arrives. How can market watchers look at Fed policy and not think that the tide is out right now in anticipation of a tsunami? When that tsunami hit, I think gold will be the life boat that saves you. Then again, maybe the central bank has finally figured out the path to prosperity, at least relative prosperity, for mankind by using the permanent ZIRP panacea boosted by a quantitative easing turbo button when needed. Who would have thought saving the world as we know it was so simple? The equity markets continue to rise relentlessly, making new all time high after new all time high, and the policy makers, in light of this, believe that continuing ZIRP is the right policy meeting after meeting. People have forgotten the powerful forces that the fed funds rate exerts on markets because it no longer fluctuates. It is stuck at zero, and come December 17 of 2014 it will have been stuck at zero for six years and counting. When the inflation from this long standing policy combined with the various quantitative easing campaigns is manifest, it will be too late to reverse, as mass psychology will have already shifted into a new state of consciousness. This shift will require much time and extreme actions to reverse. Avoiding hyperinflation will be difficult at that point, if not impossible. The charts are bearish until one day they start looking bullish, and then we will realize that the psychology of the big smart money has shifted to protecting themselves from easy monetary policy. I think it might begin this coming summer. Who knows? But the world cannot live by the printing press forever without consequences.