We can assert the trend is down because of lower lows and lower highs. What can be seen, at this point, is a very small range, so far, following a small range in May that closed poorly. What we know for certain is that the downtrend has not yet changed, so lower prices can be expected. We may hold an opinion that gold will ultimately be considerably higher in value, but there is no confirmation that price has begun to rally.
Author Archive: TDV Golden Trader
Looking at the gold chart below, we can see that gold has been correcting over the last two weeks. When applying some technical analysis to the gold chart, we can clearly see that there would have been overhead resistance at $1800 since most of the year gold has traded between $1550 and $1800. A few weeks ago, we also noticed a big build in the short position on the Comex’s Commitment of Traders report COT by the commercial and bullion banks. The effort to stop gold’s advance at a key resistance level was successful in part because of the huge increase in the short position at that level, which is [...]
Over the past summer we suggested that we would see more money become available to quality mining projects from banks sitting on tons of cash ready to loan out on credit worthy projects in their ever increasing need for higher yield. In our September 11th, 2012 blog post we stated that “Project funding will become available via bank loans on favourable projects; we can expect alot of money coming into the resource space and new projects will move towards production”. Here is an exerpt from the TDV Golden Trader newsletter sent out to subscribers on July 23, 2012: I suspect alot of that money will come into the commodities market and especially into the [...]
The gold bull market is alive and well as the summer doldrums come to a close and gold accumulation and trading starts to heat up going into the fall. As the gold bull market matures and it draws more attention from investors all around the world, it does open up the doors for fraud. By now we have heard many stories and accusations about manipulations by central planners, bullion banks, short-sellers and futures traders. The regulators in the West have largely ignored these accusations and have looked the other way when it comes to oversight and creating a fair and legal market place for precious metals. Financial Fraud in the [...]
General Outlook for Gold and the Miners It is our firm belief that the precious metals sector has bottomed out and the downside is very limited from here on out. While there doesn’t seem to be an immediate rush back into the sector, now is a great time to be acquiring physical metals, but more importantly producers with growth profiles. That’s where we really see the value and upside potential. Now would be a good time to start adding and scaling into any new positions you plan on taking. If we would have to make a speculative/educated guess/evaluation, by looking at the charts and fundamentals for precious metals and the [...]
July 25, 2012 should go down in history as the date the Federal Reserve may become fully accountable to the US government. A motion to pass the bill as amended was unanimously approved by the house to require a full audit of the boards of governors of the Federal Reserve System and banks. This will be done by the Comptroller General of the US before the end of 2012 and they are required to issue their report within 12 months of enactment. The votes in the House in the bill’s passing this was 326 yea votes to 99 nay votes with 7 non votes. Interestingly enough it was the Republicans [...]
It is currently estimated that the largest 110 central banks have 16% of their reserves as gold. Anyone who follows the gold market knows that many central banks have become net buyers of gold in the last few years, and the pace of accumulation seems to be growing. While central banks continue to accumulate gold, the misinformed mainstream media are still chanting the “gold is in a bubble” mantra. What they are not acknowledging is the clear evidence that the highest level of bankers and regulators are proposing that gold become a Tier 1 asset class with zero risk, which can also be used for collateral in financial transactions. Recently, [...]