I've stopped believing Trump when he talks about China/trade. Mexico cut its interest rate. Europe nearing its bazooka round of cuts and more. Gold has been acting as a safe-haven. I think the interest rate scare is a big part of this move in gold..
Trend for gold and silver is bullish. Better than expected US retail sale numbers did not result in correction. Some section of traders are expecting an interest rate cut next month. China will retaliate against US trade tariff. I am not writing big lines. Positive economic news has not resulted in correction in gold prices. Momentum is very bullish. Look for signs of small $15-$20 correction in gold. Full Story
August 15th marks the 48th year anniversary since the end of gold backing the U.S. Dollar for international trade. Here is President Nixon announcing this dramatic monetary and other economic policies on August 15, 1971.. Full Story
In closing, you must understand where all of this is headed in 2019 and 2020. The central bankers are finally being revealed to be shallow, mindless charlatans as their yield curve and negative interest rates plot against them. As their schemes of the past decade spiral to their inevitable failure, the time to act is now.
Only physical gold and silver can protect you from the coming calamity. And acquiring real, physical gold and silver is easy. It can be held at a trusted gold bullion storage company or in your own, personal safe. You can hold it in gold bullion coins or silver bullion bars. Take your pick. Just be sure you acquire some at a reasonable price... while you still can. Full Story
Trump and his delay of additional trade tariff will not have any impact on gold and silver. Yesterday’s fall was just an excuse to book some profit. Long term bullish factors such as de-dollarization, central bank buying and interest rate cut trend is here to stay. Even corrections up to $1370 (if any) will be a part of the bullish trend. Full Story
Make no mistake, even if by chance of a miracle a “trade agreement” is reached between China and the U.S., the underlying economic fundamentals globally have already deteriorated into a recession. And it’s getting worse. It has nothing to do with tariffs. For the primary cause, research the amount of debt outstanding now vs. 2008…
Moreover, the randomness of unforeseen news events causing sudden market sell-offs and precious metals rallies is starting to occur with greater frequency. This is driving the flight-to-safety move into the precious metals. The mining stocks have lagged relative to the risk-adjusted percentage move since early June in gold and silver. I do not expect that to last for long… Full Story
The charts posted immediately below tell one of the quiet, but perhaps most important stories unfolding in the world of high international finance. Gold has appreciated sharply in the currencies of all of the world’s top economies. In five of the top eight economies – the United Kingdom, Japan, Canada, Australia, and India – it is priced at all-time highs. In short, as currencies race for the bottom, gold is racing to the top. Investors everywhere are moving to insulate their portfolios against the combined threats of recession, plummeting yields, currency depreciation, and stock market instability. An over-arching nemesis not likely to relinquish its place any time soon has unleashed those four horsemen – the burgeoning trade and currency war.
Gold is up 25% in sterling; 22% in the yuan; 21.5% in euros; 19.7% in Australian dollars; 18% in rupee; 13% in Canadian dollars and 12% in Japanese yen. It is up sharply against a long list of emerging country currencies as well. By way of perspective, gold is up 16% in U.S. dollars thus far in 2019... Full Story
This is not the time to be placing aggressive bets on Gold or the senior gold stocks. If there is a sector correction, those areas figure to be hit harder than Silver or junior mining stocks which are not as extended.
If you missed the recent run then it is best to be patient, buy value and wait for weakness in anything that is strong but too extended. New opportunities will emerge. Full Story
However, we are finally seeing some GOOD INTEREST now taking place in the precious metals, and I believe that will continue over the next several years as the global economic and financial system continue to disintegrate under the strain of excessive leverage, debt and yes, negative interest rates. Full Story
The best performing metal this week was silver, up 4.78 percent. Silver had been somewhat detached from gold’s price changes, but now with recession odds rising, silver is catching its bid. Gold traders and analysts were bullish on their outlook for the yellow metal this week as it set a new six-year high above $1,500 per ounce. The metal saw a second straight weekly gain, fueled by uncertainty surrounding global trade tensions and monetary policy. Investors have taken notice of the rally with ETFs backed by gold growing holdings for nine straight days. Bloomberg reports that total gold held by ETFs rose 8.5 percent this year to 77.1 million ounces, the highest level in at least 12 months. SPDR Gold Shares, or the GLD, saw five straight days of inflows this week totaling a whopping $1 billion. Full Story
The Fed. The China trade deal. The House of Representatives impeachment proceedings. The Iranian aggression. North Korea firing missiles. Slowing growth in the world economy. As you can see, there are many issues worrying investors today. And, as the market moves up and down through these large gyrations these last two weeks, one excuse is paraded out after another.
When the market drops, it is supposedly because of “fears about the trade deal.” When the market rallies, I see headlines stating “the market rallies on lowered trade fears.” Sadly, this is the best the media and pundits can do. They really have no clue what is happening to the market. Full Story
But the bullish surprise in gold came in the Producer/Merchant and Swap/Dealer categories, as the former category [read JPMorgan] only increased their net short position by 4,739 contracts -- and the latter did the real work, as they increased their net short position by 31,619 contracts. The sum of those two numbers equals the commercial net short position, which they must do, because these two categories are the commercial traders.
The commercial net short position in gold is now up to 32.43 million troy ounces...which is very bearish.
Although the COT Report in gold is hugely bearish on its face, the fact that it appears that JPMorgan was almost a no-show during the past reporting week, has Ted sniffing a double cross in this precious metal -- and even the Bank Participation Report shows that something out of the ordinary is going on.
Could 'da boyz' smash gold and silver lower at any time, you ask? Sure, in a New York minute, as both are overbought and in bearish territory from a COT perspective. But I expect any attempt at that to be short-lived, but potentially violent. Full Story
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