Gold futures fell to a six-month low after Federal Reserve Chairman Bernanke says the U.S. economy is recovering, easing pressure for more stimulus measures by the U.S. Government.
Another blow to Gold was the announcement that Billionaire investors George Soros and Louis Moore Bacon cut their stakes in exchange-traded products backed by gold last quarter as futures dropped the most in more than eight years.
With these big investors bailing out on Gold we wanted to know.....
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Every Success,
Jeremy
A look at a 3 yr. chart on http://stockcharts.com/h-sc/ui shows a very solid two-year support floor for the price of gold at $1600. That should{?} be it for the "correction".
Now, gold is being victimized by:
1.- Brainwashed ignorance (and stupidity): believing what a Central Banker tells us.
2.- Central with/and Bullion Bank gold-price manipulation through the Lease Rate: The Bullion Banks invented gold leasing at a specified lease rate to earn interest on a high-price stored asset. The lease rates are for 1,2,3,6 and 12 months. Fair enough. However. If you look at a 3 year lease-rate chart (http://www.kitco.com/lease.chart.html), you can see that the 1, (2 not shown) and 3 months lease rates have been NEGATIVE(!)for some time. You can also see that there have been several down-spikes in ALL the lease rates to as low as -6% for the 1-month rate. One in Sept. 2011 at gold $1900; one in Dec. 2011 at the turn-around point from the $1900 plunge; one in Sep. 2012 prior to the QE3 announcement and a last one on Feb. 8 to almost -5%, just as gold was getting ready to break out of a very bullish pointed wedge!!! How convenient! Would say The Church Lady. And, just exactly how does a Bullion Bank earn interest from a NEGATIVE LEASE RATE? Doesn't it imply that the bank will PAY YOU to lease its gold?! and when that gold is leased it artificially increases the supply? Further, today, after the $1600 level (target?) has bee reached, ALL the lease rates have turned POSITIVE and are climbing!!! (You can look at today's lease rates and a 30-day chart on http://www.kitco.com/ in the left pannel, half way down the page). Concluding: The sharp rise of ALL the gold lease rates from a negative spike [-5% to -2.5% ] sharply into positive territory and climbing since Feb. 8 and after reaching the 1600 long term support level, tells me that gold is READY TO ROLL!!
How can our economy improve as our total debt continues to increase? Dr. Lacy Hunt looks for the current long rate of 3.18% to eventually decline to around 2%. Gold is the only long term investment I know of that has out-preformed the 30-year U.S. Treasury Bond. Hunt's record has been truly outstanding in the past. Van Hoisington and Lacy Hunt have
realized a 9.5% average return over the last 20 years in The Hoisington U.S. Treasury Bond fund, (WHOSX).
Since $ 1850+++ lavel, i again and again warned about Gold Bear Face, afterwards, each and every bounce were Technical and was highly illusive, not only comman investors, but even many analysts too, were talking about fundamentals, economic situation, etc. etc. they failed to identify very clear technical signal, showing down- down and down only.
Stil hard time ahed, be cautious.
I like Rusty's attitude. I have been waiting to buy GLD and/or SLV for months. Next target for gold is the triple bottom area from 1525-50. It should get support there, but there is nothing more bearish than breaking a triple bottom as the dollar may gain strength this year during the currency wars being the tallest midget in the room.
I would certainly consider going all in with gold at 1150, or 1350 when the forces align themselves, and I am sure the world's central banks would not be opposed to lower prices so they can pick it up on the cheap as it will prove vital in their exit strategies from all the cheap money policies.
The total world financial situation will provide good support.Gold certainly has a new monetary role and it won't be cheap!
"Never try to catch a falling knife"
Patience, patience!
Are Precious Metals dropping because it is stock option expiry day, and the powers that be have a HUGE vested interested in making sure all those calls expire worthless at 4:00 p.m.?
At strong support, with China on vacation, a year and a half after the high, I'm going to sell HERE?
That's for good little sheep that do what the banksters want them to.
Lots of dry powder - take it down boys, take it down, I'm grateful for the opportunity.
miker