So if gold is indeed in a new bull market, then the current display of “bull market pessimism” should not get much worse, and we should see buying pressure start to take hold. If not, and gold not only breaks its early April lows but sentiment also gets worse, then the nascent bull market is in trouble.
There appears to be far more downside risk in the S&P than in silver. Silver has had three bad years while the S&P has had five good years. It is time for both markets to reverse. Examine the following graph of Silver versus the Silver to S&P ratio. It tells me the ratio has returned to levels seen in 2008 and that the ratio follows the price of silver.
I am not surprised that business in Dubai has increased substantially. From what I see and hear, people in this region have no interest in what analysts at the major banks have to say about gold nor do they pay any attention to what Western main stream media has to report on gold. They are also not interested in the fact that Hedge funds in the West have trimmed their net long positions in gold. What is important to them is ownership of physical gold.
In his latest letter, Charles Savoie, silver expert and author, explains with a recent example how he has attempted to inform society since December 2004 that the precious metals suppression is coming from the top down from one organization only, with a branch in London and a branch in Manhattan: The Pilgrims Society. Savoie describes and documents at great length (+500 pages) at SilverStealers.net how members of the organization have been seizing silver, stealing silver, devastating silver mining companies, shoving silver and gold out of the money system, and feeding off mining shareholders carcasses since its founding in 1902-1903.
The chart shows how the Hryvnia has been devalued significantly against the USD in 2008, from 0.22 to 0.12. It remained rather stable until this year, when the currency collapsed from 0.12 to 0.08. At the same time, the price of gold in Hryvnia went from 4,000 to 8,000 in 2008. Since the beginning of this year, Hryvnian gold exploded from 10,000 to 17,444 last week.
We must understand what money actually is… and why Gold is money. As J. P. Morgan famously stated, ‘Gold is money… everything else is credit’. To put it bluntly, bank notes, Dollar bills, all forms of Fiat currency are IOU’s; that is, credit (debt)… and circulating debt notes cannot extinguish debt, they simply shuffle debt around. Money and debt are polar opposites.
We see charts as the “improved mousetrap,” as it were, and superior as a tool for market timing over fundamentals, or any other similar undertaking, for relating to what and when to buy in the markets. Still, there are not that many converts who pay more attention to what the market is saying. The one thing we know for sure is, regardless of whatever one has in the form of expectations, they are always subordinate to the final arbiter over price, and that is the market itself. The best we can say about gold is that it may be transitioning from its protracted down trend. The signs that gold remains under pressure are still there, bearish spacing, lower swing highs, etc, and that means any buying has to be very select, or not at all, again, profit being the only objective.
Whichever option you choose, following the gold and silver price per ounce is an easy way to monitor your investment. With both precious metals looking to make a recovery this year, 2014 could be a great time to add silver to your portfolio.
Gold’s progress was characterized by a sudden steepening of the curve leading to a final blow off when the price had gotten ahead of itself. We now need to see a similar occurrence take place during a sell off. However, this sell off, as torrid as it has been lacks that final spike down which occurs when even the most ardent bulls have had a guts full and finally throw the towel in. Gold and silver’s inability to sustain a decent rally suggests that it could re-visit and test its old June lows. Should this support fail to hold we could then experience a rather disorderly sell off taking gold back to the $1000/oz level.
In the big picture of things, Morgan does not consider the $25 resistance level as THE most important fact. If silver goes to $100 an ounce, which is line with Morgan’s expectations, it will not make a difference whether you bought at $20 or $30. From that point of view, the grey metal is now in a bear cycle during a secular bull market. After gold and silver have gone up for 12 years in a row, it went lower the 13th year. There is nothing unusual about that, as all markets go up and down.
Richard Russell is almost 90 years old and has seen it all. He recently stated: “My advice, as it has been, is to move to the sidelines while holding large positions in physical silver and gold. Regardless of what the markets do, silver and gold represent eternal wealth, and the bid to sleep undisturbed at night. No amount of money is worth the loss of peace of mind. The power of gold opened the American West and populated Alaska. Men have spent their lives searching for gold. You can own gold by the simple action of swapping Federal Reserve notes for the yellow metal. I advise you to do it.” […]
In this report, the authors discuss options of investing in physical (bullions, numismatic coins and collectible items, junk coins, silverware and flatware, jewelry) and paper (trusts, investment through companies that buy/sell and store precious metals for you, deposit programs, bank gold/silver certificates) precious metals. Readers get to know all available options along with advice on how to buy and sell precious metals on Ebay, which can be very profitable if you follow our recommendations.
As indicated previously, both platinum and palladium have broken out of a long trading trange. The following chart shows how palladium is holding up very well above the support line (which once was very strong resistance), and is even building up strength. The law of supply and demand will kick soon kick in, taking the two grey metals higher. In particular, palladium could surprise many with much higher prices in the (near) future.
On the myth that it is not important how much is printed, Jim Rickards says that the Fed’s safety net of printing has holes in it. If the money printing could go on indefinitely then you would be right and I would agree with you but it cannot go on indefinitely. The Fed could legally print more than the $4 trillion they’ve already created — $8 trillion, $12 trillion, $16 trillion. Some people say that they can do that — legally they can but they will destroy confidence at some point.
Silver About To Move Higher and S&P Lower April 22
There appears to be far more downside risk in the S&P than in silver. Silver has had three bad years while the S&P has had five good years. It is time for both markets to reverse. Examine the following graph of Silver versus the Silver to S&P ratio. It tells me the ratio has returned to levels seen in 2008 and that the ratio follows the price of silver.
Gold Price In Ukraine 75% Higher In 2014 April 21
The chart shows how the Hryvnia has been devalued significantly against the USD in 2008, from 0.22 to 0.12. It remained rather stable until this year, when the currency collapsed from 0.12 to 0.08. At the same time, the price of gold in Hryvnia went from 4,000 to 8,000 in 2008. Since the beginning of this year, Hryvnian gold exploded from 10,000 to 17,444 last week.
Gold And Silver – Gann, Cardnial Grand Cross, Mousetrap, And Wrong Expectations April 19
We see charts as the “improved mousetrap,” as it were, and superior as a tool for market timing over fundamentals, or any other similar undertaking, for relating to what and when to buy in the markets. Still, there are not that many converts who pay more attention to what the market is saying. The one thing we know for sure is, regardless of whatever one has in the form of expectations, they are always subordinate to the final arbiter over price, and that is the market itself. The best we can say about gold is that it may be transitioning from its protracted down trend. The signs that gold remains under pressure are still there, bearish spacing, lower swing highs, etc, and that means any buying has to be very select, or not at all, again, profit being the only objective.
Hold physical precious metals outside the banking system to survive the coming financial winter.
