Tag: Gold analysis

Gold Is Setting Up For a Short

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By: Chris Wilkinson of Longleaftrading.com

The overall fundamental theme for gold is still bearish. With the dollar rallying and commodities being dollar denominated, all else being equal, the price of commodities should decrease. The market looks to be pricing in low inflation to come and gold is used as an inflationary hedge. This is a bearish fundamental factor.

What we saw last week was very opportunistic upward movement that is helping set up the much larger downward trend that I foresee coming. The cash injections from the ECB and China should be short lived as the market will once again see these central banking efforts will not have a large impact on global inflationary numbers. Let’s look at the charts to plan our trade.

Continue reading "Gold Is Setting Up For a Short" →

Goldzilla

Posted on by The INO.com Team

"History shows again and again how nature points out the folly of man" – Blue Oyster Cult, Godzilla

I would have written off the gold sector long ago in its ongoing bear market had I thought for one moment that gold's utility as insurance against the acts of monetary madmen/women in high places had been compromised in any way. On the contrary, the monetary metal is simply having its price marked down in a bear market while its value, especially given its current price and all that has gone on in the financial system over the last 3 years remains just fine.

Indeed gold, an element dug out of the ground for centuries, once as money and now as a marker to sound money systems will one day be shown to be a calm oasis from the fallout to global monetary shenanigans currently ongoing. At least it would be an oasis to those who have valued it as such. It is going to feel like a giant dinosaur (minus the kitsch value) ripping through a city built on paper to the multitudes who have taken the bait on the current too big to fail global inflationary operations. They will fail. Timing is the only question. Continue reading "Goldzilla" →

In The Week Ahead: This Stock's Breakout Signals More Gains Ahead in 2014

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By: John Kosar of Street Authority

All major U.S. stock indices finished in positive territory for the fourth consecutive week, led by the tech-heavy Nasdaq 100, which gained 1.6% and is now up 17.6% for the year. This index has been a major focus of mine since the Aug. 25 Market Outlook. Its move above major overhead resistance at 4,147 this month was an important catalyst for the recent strength in the broader market.

On a sector basis, technology, consumer discretionary and materials led. Utilities, energy and financials trailed the pack and finished the week in negative territory.

Cisco Systems Resuming 2011 Uptrend?

The recent strength and leadership shown by the technology sector resulted in a potential buying opportunity in Cisco Systems (NASDAQ: CSCO). I discussed the topic Wednesday on CNBC, just before the tech bellwether announced its fiscal first-quarter earnings.

CSCO, which is the 10th largest constituent stock comprising 3.3% of the technology sector index, broke out to the upside on Friday from 15 months of sideways action that indicated investor indecision.

CSCO Stock Market Outlook Chart

This breakout indicates that CSCO's larger August 2011 advance has resumed and targets a move to $32, 22% above Friday's close. This will remain valid as long as the upper boundary of the indecision area at $25.90 loosely contains prices on the downside as underlying support. Continue reading "In The Week Ahead: This Stock's Breakout Signals More Gains Ahead in 2014" →

Can Gold Act as a Safe Haven Again?

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The Gold Report: The World Gold Council, which gets its numbers from Thomson Reuters GFMS, reports that total gold demand in Q2/14 fell by 15% versus the same period in 2013. Furthermore, physical bar and official coin demand were basically cut in half while jewelry demand fell by 217 tons or 30%. What do you make of all of that?

Christos Doulis: Clearly, there has been less enthusiasm for owning gold in recent years. A lot of that has to do with the concept of gold as a safe haven. Six years ago, when the financial crisis was in full swing, gold was $800900/ounce ($800900/oz), but on its way to $1,900/oz in September 2011. The fears associated with that period have largely receded and we're seeing a decrease in both gold investment and jewelry demand, which is often a form of savings in non-Western nations. We're seeing a reaction in demand because the fear component that drives interest in the gold space is down significantly.

TGR: Meanwhile, central bank gold purchases were up 28% year-over-year. Is that the silver lining?

"Cayden Resource Inc. has a quality project that will likely be among the lower-cost producers."

CD: I'm a goldbug in that I think everything that has happened since 2008 is ultimately positive for precious metals prices. We've had a massive money printing exercise. The markets are running because there's so much money and the money has to go somewhere. The fact that central banks are buying gold tells me that goldthe currency between states and central banksis still regarded as an important part of the reserve mix. While the demand for gold among general investors may have decreased during the last few years, the policy makers in the central banks are well aware of the seeds that have been sown in a fiat-currency race to the bottom.

TGR: With the U.S. economy seemingly strengthening, gold seems destined to trend lower in the near term. What's your view? Continue reading "Can Gold Act as a Safe Haven Again?" →

How is Doug Casey Preparing for a Crisis Worse than 2008?

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By Doug Casey, Chairman

He and His Fellow Millionaires Are Getting Back to Basics

Trillions of dollars of debt, a bond bubble on the verge of bursting and economic distortions that make it difficult for investors to know what is going on behind the curtain have created what author Doug Casey calls a crisis economy. But he is not one to be beaten down. He is planning to make the most of this coming financial disaster by buying equities with real value—silver, gold, uranium, even coal. And, in this interview with The Mining Report, he shares his formula for determining which of the 1,500 "so-called mining stocks" on the TSX actually have value.

The Mining Report: This year's Casey Research Summit is titled "Thriving in a Crisis Economy." What is the most pressing crisis for investors today?

Doug Casey: We are exiting the eye of the giant financial hurricane that we entered in 2007, and we're going into its trailing edge. It's going to be much more severe, different and longer lasting than what we saw in 2008 and 2009. Investors should be preparing for some really stormy weather by the end of this year, certainly in 2015.

TMR: The 2008 stock market embodied a great deal of volatility. Now, the indexes seem to be rising steadily. Why do you think we are headed for something worse again?

DC: The U.S. created trillions of dollars to fight the financial crisis of 2008 and 2009. Most of those dollars are still sitting in the banking system and aren't in the economy. Some have found their way into the stock markets and the bond markets, creating a stock bubble and a bond superbubble. The higher stocks and bonds go, the harder they're going to fall.

TMR: When Streetwise President Karen Roche interviewed you last year, you predicted a devastating crash. Are we getting closer to that crash? What are the signs that a bond bubble is about to burst? Continue reading "How is Doug Casey Preparing for a Crisis Worse than 2008?" →