Tag: psychological analysis

It Takes a Village

It Takes a Village

This village was a long, long way away and this story happened before the world developed High Frequency Trading, Derivatives, Quantitative Easing, PhD economists, central banking, paper money, and career politicians to manage the affairs of our nation, so this story may not be relevant to our modern and sophisticated world.

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The Price Of Gold and The Art Of War

The Price Of Gold and The Art Of War

Only fools and the ideologically impaired believe that today’s capital markets are free. In free markets, prices are determined by supply and demand. In capital markets, supply and demand considerations are subordinated to capitalism’s increasingly dysfunctional monetary menses, i.e. credit flows, emanating from central banks. Of all markets, today’s gold markets are the least free. Based on history, we know that gold will soon again experience a meteoric rise in spite of government attempts to the contrary.

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Are We At Maximum Pessimism In Resource Stocks?

Are We At Maximum Pessimism In Resource Stocks?

Bear markets, like we are in now, beget bull markets. Bull markets beget bear markets. When you are feeling terrified, you have to be aggressive; when you are feeling brilliant, you have to sell. If you do not do that, you will be a victim. It is just the way it works. If you ignore the fact that these are capital-intensive and cyclical businesses, you are roadkill on a good day.

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Lessons From A Successful Investor: Control Your Worst Enemy, Your Emotion

| January 31, 2013 | Articles: Insights

During his latest interview on King World News, Rick Rule explained the most fundamental principles to be a successful investor. He has a proven track of record, as one of the most successful resource investor. The key to success is very simple: control your emotions. But let’s be honest, it is not that simple in reality. Insight 1: “Your expectations for the future are set by your experiences of the immediate past.” Between 2009 and mid 2011, both the metals and the shares have been performing very well. People’s expectations for the future have been influenced by their most recent experiences. People should be looking at the current consolidation period […]

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The gold rush will return

| August 4, 2012 | Articles: Insights
The gold rush will return

It’s easy to be bewildered by the daily noise of the mainstream media. Yet at a time when savings and wealth are threatened by the debt crisis, there is little talk about the real benefits of precious metals as a hedge against the ongoing crisis. People are completely missing the point. What about gold’s fundamental value? What about the real benefits of owning gold? To help put this in perspective, I created a simple but comprehensive framework below, outlining the bullish and bearish factors affecting gold’s “true” value. An historical evolution is underway, with many important gold-bullish events in recent months despite the horizontal price action. Something that could be of […]

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Peter Schiff: Priced for collapse

Peter Schiff: Priced for collapse

Where is the gold price today? If you’re like many Americans, you have no idea whether it went up, down, or sideways. Fortunately, I know my readers to be more informed – you likely know that after falling from almost $1900, gold has been trapped around $1600 since early May. But you may still be curious why despite continued money-printing and abysmal US economic reports, gold hasn’t been able to hit new highs. Here’s the truth: gold is currently priced for collapse. Many investors believe the yellow metal has topped out and are selling into every rally. Nerves of Tin Being a gold investor is tough business. The last thing […]

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The gold price could be preparing its flight

The gold price could be preparing its flight

The summer is there, time for a well deserved holiday. Most people booked their flight … but what about the gold price ? It could be it is preparing its flight as well. We read on Forbes.com an interesting article, concluding that gold could be setting up for a major move. Based on technical analysis, the author showed that the gold price is on a critical juncture. As we are in secural bull market, the technical indicators should be signaling a powerful move up (not down). One of the most respected newsletter writers on this planet, Richard Russel, published a similar conclusion earlier this week. His opinion was based on a […]

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Deciphering Silver

Deciphering Silver

The internet has been awash with comments recently about the downdraft in silver and the strong increase in Open Interest on last week’s big down day. As usual, the chatter is about an orchestrated attempt by JP Morgan to smash the price of silver lower so that they can cover their “losing short position”. Let me first state that I am a firm believer in the view that the US government has a vested interest in controlling the price of gold. Being a good friend of GATA, we both have ridden through the ups and down of this together for the last decade. However, that being said, not every move […]

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Gold-Stock Valuations show Gold Stocks are incredibly cheap

Gold-Stock Valuations show Gold Stocks are incredibly cheap

Gold stocks languish in a sentiment wasteland these days, left for dead by everyone but a small contrarian remnant. So naturally bears abound, their arguments dominated by the idea that gold miners’ costs are so high that they can’t make money anymore. Provocatively though, this notion is totally wrong. As gold-stock valuations reveal, gold miners are earning profits hand-over-fist at today’s gold levels. Valuations are the fundamental heart of stock investing, ultimately driving the vast majority of long-term performance. Investors buy stocks because they want a stake in companies’ future profits streams. The less they pay for each dollar of future profits, the better their ultimate returns. And the price […]

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Euro to Surge

Euro to Surge

The fortunes of Europe’s beleaguered euro currency have been heavily influencing US markets. Both stocks and commodities have been battered down recently by overwhelming euro bearishness. This has proven seriously vexing for traders trying to focus on fundamentals. But the extreme euro pessimism worrying everyone is actually very bullish. This loathed, oversold currency is due to surge again. Today of course the great fear plaguing the euro is centered around Greece. This profligate, unrepentant debtor nation seems hellbent on not honoring its commitments to the rest of Europe which could force its exit from the eurozone. And though Greece’s economy is immaterial relative to greater Europe’s, traders are worried Greece […]

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Gold-Stock Capitulation

Gold-Stock Capitulation

Gold stocks have been pummeled mercilessly this month, their price action looking almost apocalyptic. The psychological stress spawned by such extreme weakness is intense, breaking the wills of this sector’s few remaining bulls. This week their selling cascaded into a full-blown capitulation, a mass surrender by weary investors. While exceedingly miserable, these events flag major long-term bottoms. Over the course of gold’s powerful secular bull, the gold stocks have been a sentiment roller coaster. Early on their gains were enormous, gold stocks even rocketed higher while the general stock markets plunged in a brutal cyclical bear. Though they were nearly obliterated in 2008’s once-in-a-lifetime stock panic, as expected they soon […]

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Major Bottom in Precious Metals Could Occur This Week

Major Bottom in Precious Metals Could Occur This Week

Normally catching a bottom is not difficult. Bottoms tend to occur instantly while market tops form during a process. Yet, I’ve found that bottoms of long-term significance do not occur instantly. Like tops, they can take time to develop. For example, think about late 2008 to early 2009. Commodities hit their price low in December but the bottoming process began in October and wasn’t complete until May. Emerging markets hit their low in November but the process began in October and ended in March. Returning to the present, we see that Gold and Silver look set to retest their late December lows. Our work leads us to argue that the […]

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What are the gold price and fundamentals telling us this week?

We had a choppy week in the gold price and silver price. The gold price closed the week at $ 1579 and € 1222. That’s a decline of some 3.5% compared to one week ago. The silver price ended the week under 30 US dollar for the first time since the beginning of 2012, closing at $ 28.89 and € 22.36. That’s some 6% lower than a week earlier. Mainly in the first half of the week, we saw a substantial decrease of  the gold and silver prices; the gold shares have been hit even harder. Let’s try to find a reasonable explanation for this decline. Given the price action, one […]

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Gold Price & Silver Price Manipulation: is it real or not?

A lot has been written in the last couple of years about the manipulation of the gold price and silver price. As the subject is becoming more widespread known and even accepted, it raises also questions from people that are not very familiar with gold and silver. That’s why we decided to collect some very recent writings and interviews from 7 different people that are well respected in the precious metals industry, most of them are real experts and are in the industry for many many years. First some general questions & answers on the gold price and silver price manipulation So the first question is “what is it exactly?” Well, it’s the […]

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