Given the position for gold, near its lows, the likelihood of support holding above a 50% retracement, the 1219-1220 area, is not in keeping with the character of a down trending market. For sure, buying rallies, expecting yet a higher rally has not worked in gold, to which we can attest from a few trades some time back. Time is on the side of longs who are best served being on the sidelines, for now.
Tag: physical gold and silver
The interesting observation is that most months of the first half of this year, silver coins were more popular than gold. January 2014 was the only significant exception. One should note that this chart shows the dollar value of gold vs silver coins. As silver is about 60 times less expensive than gold, it means that the number of coins sold were many times higher than the number of gold coins sold.
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.
For every valid reason that so many others are advocating the purchase of physical gold and silver, demand, shortages, Chinese buying, exchange disappearing physical, etc, etc, we echo those sentiments and suggest/advise to keep on buying, but hold it personally. However, for more salient reasons, such as discussed in our last several commentaries, as well as this one, there are far more important reasons to buy and hold gold and silver: They are money.
The delusions regarding the value of paper currency, usefulness of the Fed, government entitlements, the welfare and warfare state, and continual growth are weakening. The ultimate reckoning may be sudden or slow, but it will not be pretty for the unprepared. Gold and silver will remain valuable and a store of value over the next 60 years.
Here I am, directly and consistently accusing two of the world’s most important financial institutions of market manipulation (making sure I send each all my accusations) and I have received no complaint from either. I don’t think that has ever occurred previously. Now I am taking it one step further; presenting a guide for how and why JPMorgan and the CME should be sued for their manipulation of gold, silver, and copper.
There are just 2-3 anonymous investments to avoid being robbed by NWO socialists: physical precious metals, cash, Bitcoin (with reservations). Each of the 3 has advantages & disadvantages, foreign currency accounts potentially being planned as an escape. Of course, the big drawback of gold is the nasty performance.
In this interview with Claudio Grass, our friends at SGTReport talk through several fundamental points related to free markets (Austrian economics), the concept of money and the precious metals markets. Claudio Grass is the Managing Director of Global Gold, a bullion company specialized in storage of physical precious metals outside the banking system in safe jurisdictions like Switzerland. We have chosen four underexposed insights related to gold.
In this article, author GE Christenson compares the timely character of gold and silver. They have served humanity as a store of value and wealth for over 3,000 years. This is in sharp contrast to the values an habits associated with the (economic and political) establishment. In that respect, think of paper money, unfunded liabilities, pension plans, exponentially increasing debt, massive budget deficits, “too-big-to-fail” banks.
Do not play Russian roulette with the timing of your purchases, anymore. In fact, the Russians, [and the Chinese, and the Indians, and the Turks, and the Arabs] have been the willing beneficiaries of this blatantly stupid move by Western central bankers to scare people away from owning physical precious metals.
Bron Suchecki admits not being sure how to read current market behaviour. On the one hand, weak investor sentiment could be signaling a bottom. On the other hand, it could also signal a sell off in gold and silver prices if the large seller(s) which caused the mid-April crash will test the strength of the market. Regulators did not show too much interest to investigate this anomaly, so why should the seller(s) not repeat it.
In current times, when governments can confiscate your savings, or impose ridiculous taxes while depreciating the value of your money, it is essential to accumulate physical gold and silver as a long-term insurance against further currency depreciation.
You have to realize how crazy-anomalous 2013 has been. Melting-up stock markets breeding euphoria are very rare, only seen at the ends of major bull markets. Stock euphoria diverting capital away from all other asset classes is equally as rare. But if you’d told me how 2013 would play out in the stock markets, GLD, and gold, but said SLV would ignore the carnage, I would have thought that was utterly impossible.
As there is no significant yield elsewhere, equities and US dollar could have a long way to go before they correct. Hence, gold and silver could see a long way down, before they reverse. Gold and silver investors should think about the reasons why they are holding the metal. If it is for monetary protection, then they should be able to ignore short to mid-term price action, even if the price will go lower. There are too many contradictory signals out there right now. Participants in the ongoing uptrend should be careful.
If you get my message, then you will see how important it is to own some physical gold and silver. In the long-term, they will prove, once again, to be an effective preserver of wealth. Take advantage of the current low prices.