As a general rule of thumb, we all know that fundamentals are not always reflected in the charts. It mostly takes some time until the price follows fundamentals. For palladium in particular, there is a very high probability that its chart starts reflecting the strong supply/demand fundamentals.
There is something going on in the gold and silver market, and it is difficult to ascertain exactly what it is. Perhaps it can best be described as a change in market behavior that may be defining a potential change in trend. 2014 is now THE year for the “big breakout.” It has to be presented as such because calling 2013 the big year will no longer work.
From where will the gold ETF source their gold once the ETF demand turns higher again? It is clear that a supply shortage is a very likely outcome of renewed interest in gold ETF’s. We know that newly mined gold is limited compared to the existing above the ground gold, so it cannot meet Chinese and Western demand. In fact, above the ground gold IS the supply. So what happens if the appetite for gold in Asia remains strong, if those existing gold owners do not supply their gold to the market, and Western demand increases again?
It is critical not to fall in one of the gold scam traps. Peter Schiff, founder of Euro Pacific Precious Metals, has released a free anti gold scam report. He observes that the majority of investors are currently playing the US markets and shunning gold, just like they did in 2007 and 2008, right before the financial collapse. For gold investors who are serious about investing safely, we has updated and re-released the Classic Gold Scams report. In it, he provides four tips.
The chart shows the trend in a range based on a 95% prediction band. The stand-out feature on the chart is how gold remained within the range for the past 10 year for most of the time. The two exceptions were gold’s peak in the summer of 2011 and the collapse in 2013. Gold is close to entering the long term trendline.
People should not think that the role of gold is only to move from one central bank to another (say from the US to the Chinese). That is gold’s use for currencies by the central bankers. YOUR use of gold is to preserve the purchasing power of yourself and your family through a variety of circumstances in some mechanism other than fiat currency.
In the last few weeks, we had “warned” several times how the price of platinum and palladium were at major resistance on their long term daily charts. As of today there is no doubt anymore. Both metals have broken out strongly on big volume. All conditions are met for a long term break out.
Every investor understand the principle buy low and sell high. When prices are low, nobody wants to buy. When I compare gold shares and the price of gold to the S&P 500, the S&P is up substantially since 2011 and gold is down. So if you compare the performance of gold shares to the S&P, I think it’s been a disaster for gold shares. When I look around, I think the price of gold is one of the few assets that are relatively inexpensive.
The arrogance, elitism, and condescension of bankers towards the common citizen are starkly revealed. These brilliant criminals have created the Ponzi scheme of all Ponzi schemes and so far, protected it from any form of criminal prosecution. However, that might be about to change. Awareness of their criminality is growing throughout the world at a rapid pace but never doubt that this group will fight tenaciously and be willing to go to any extremes to protect their centuries’ old scam. We predict there will undoubtedly be more strange banker deaths ahead of us in the ensuing weeks, months, and years.
A reasonable projection for the equilibrium gold price (a “fair” price for gold) in 2017 is $2,400 – $2,900. Remembering that market prices can spike significantly above or crash below the EGP for many months, we could see a spike high above $3,500 or $4,000 in 2017. Extraordinary events such as a global war or dollar melt-down could push prices higher and sooner.
There is little doubt that the 2nd Daily Cycle has topped, so we need to be patient with the decline. The timing for a top is acceptable, and the oscillators have clearly turned and are headed lower. The upward Cycle trend-line has been broken and Gold closed below the 10dma. At this point, we should assume that we have 2-7 sessions lower, with an target of between $1,290-$1,300.
While the London Fix price manipulation was already known for years (for instance by research from Dimitri Speck documented on several sites including ours), it is the COMEX futures dominant positions of JP Morgan that is an even bigger act of price manipulation. As usual, the mainstream media are running behind the truth and are not able to report on the most relevant facts.
In his weekly market review, Frank Holmes of the USFunds.com nicely summarizes for gold investors this week’s strengths, weaknesses, opportunities and threats in the gold market. The price of the yellow metal went lower after two consecutive weeks of gains. Gold closed the week at $1,326.44, up $2.16 per ounce (0.16%). The NYSE Arca Gold Miners Index fell 2.62% on the week.
For now, let’s continue to support the notion that a further move higher is coming. But at the same time, let’s acknowledge that a close below $1,322 would be Daily Swing High, a trend-line break, and a 10dma break. The next couple of days will be telling, because gold hitting that trifecta of events would certainly confirm a Daily Cycle headed towards the next Cycle Low.
Palladium Near Its Highest Level in Almost a Year
As a general rule of thumb, we all know that fundamentals are not always reflected in the charts. It mostly takes some time until the price follows fundamentals. For palladium in particular, there is a very high probability that its chart starts reflecting the strong supply/demand fundamentals.
Gold and Silver Market Activity Will Always Trump News and Fundamentals
There is something going on in the gold and silver market, and it is difficult to ascertain exactly what it is. Perhaps it can best be described as a change in market behavior that may be defining a potential change in trend. 2014 is now THE year for the “big breakout.” It has to be presented as such because calling 2013 the big year will no longer work.
Gold Almost Back In Long Term Trendline
The chart shows the trend in a range based on a 95% prediction band. The stand-out feature on the chart is how gold remained within the range for the past 10 year for most of the time. The two exceptions were gold’s peak in the summer of 2011 and the collapse in 2013. Gold is close to entering the long term trendline.
Hold physical precious metals outside the banking system to survive the coming financial winter.
