Goldtent TA Paradise

GLD Gold Holdings at an 86 Month Low !

That would be seven years and two months!

Once again, this ETF has proven to be a most excellent indicator of Western-based investment demand for the yellow metal.

It is probably no coincidence that the Dow Jones/UBS commodity index is sitting at a thirteen year low!

Copper is at a fresh six year low…

Platinum is at a seven year low…

What is incredible to me is that there still exists a contingent of those who actually continue to spout the nonsense that the reason gold is so low is on account of manipulation!

With the Dollar not far off from a 12 1/2 year high, what do they expect gold to be doing, soaring higher???

The simple fact is that the strong Dollar combined with a slow growth global economic environment, has completely undercut any reason to tie up precious investment capital in a metal that pays no yield whatsoever. That is the reason gold is performing so poorly, not because of some cockamamie price manipulation scheme.

I have said it many times now, if anything, the Fed wants a HIGHER gold price, not a lower one. They are attempting to stave off deflation not inflation. That is where their battle is focused. A falling gold price is the exact opposite of what they want to see.

I know I run the risk of repeating myself too often but I think it continue to merit saying that while the Fed views falling commodity prices in general as a positive, at some point the fall in commodity prices drops too low for their comfort. The reason is that such an environment is deleterious to those industries that are involved in the production, distribution, manufacture, handling, etc., of those commodities. That results in lost jobs ( just think about the oil patch and everything that is tied to that sector – exploration companies, equipment companies, small town restaurants, hotels, etc., ) which outweighs the benefit to consumers and end users of those commodities. I am not sure if we are at those levels yet for certain commodities but I think it is safe to say that we are rapidly reaching a price point at which the fall in crude oil, if it continues, is going to be of big concern to the Fed. The pain in the oil industry is perhaps as bad as I can ever recall seeing it.

In this sort of environment, one in which a major commodity index is sitting at a 13 year low, why in the world would the Fed be employing the so-called “evil bullion bank cartel” to pressure the gold price even lower? The entire theory requires the adherent to suspend all rational thought process and market analysis. Then again, it is a lot easier for the various gold gurus to keep espousing this nonsense and continue duping their groupies rather than simply admit that they have been totally and completely wrong. Alas, humility is the single most important virtue that is lacking from so many in the gold cult. They would rather lose huge sums of money than actually try to learn what went wrong with their analysis and understanding of the markets. Blame it on the manipulators and console themselves with the idea that they are to be commended for “standing strong when others gave up”.

Maybe we can carve those words on their financial tombstones.

The reason I am so disgusted with this is because I have seen firsthand what these people have done to the lives of the many victims they have utterly deceived. We are talking about a trail of human wreckage, one involving crushed dreams of retirement, college educations, financial and even psychological well being and marriages in some cases.

Gold, to these people, has become nothing but a curse, especially the gold mining shares which have financially obliterated them. Had they simply stopped listening to their gold cult leaders and instead heeded the voice of the market, they would have lost some money, but not been ruined as so many of them now have been.

So many have forgotten that the last time gold entered a bear market, the downturn in price last TWENTY YEARS before it reversed. That may be fine for some who are still young but some are advanced in age and quite frankly, they do not have another twenty years on this planet in which to try to recoup their losses.

This is the number one thing to learn for all of you who are attempting to learn the art of successful trading/investing. There are only two sides of a market – the WRONG one and the RIGHT one. The only way one can be on the RIGHT SIDE is to check their opinion against the opinion of the market to see whether or not it is the correct one. And how does one discern the opinion of the market? Answer – understanding the price chart and learning to hear what it is saying.

Master this art and you are well on your way to being a success, needing no one to hold your hand and quickly learning to avoid the fraudsters and egoists that infest the world of markets.