The Gold Report:You recently told a crowd of investors at Prospectors Developer Association of Canada (PDAC) that precious metals are the best place to invest in an inflationary period. Why is that?
Leonard Melman: When prices are going up, you wouldn't want to be in housing stocks or auto financing, but you would certainly want to be in precious metals. You also might want to short the bond market. That is why you have to be aware of the direction of inflation. It is important to the concept of precious metals pricing. If you've been around for a few years, as I've been lucky enough to be, then you can easily recall a time when high inflation was the absolute key ingredient in massive previous bull markets. That is why I thoroughly look at what has led to past inflation and hyperinflation. I use four examples: the Roman Empire, the French Revolution in the late 1700s, the German hyperinflation in the 1920s and the recent catastrophe of hyperinflation in Zimbabwe. I examine whether America and other countries in the world are perhaps following the same paths that led to those previous hyperinflations.
October has been a busy month for gold. First, it hit a record high on October 18th at 1386.72 and gave all of our gold bugs reason to say I told you so. Then, earlier this week gold took a small dive prompting an exit signal via the "Trade Triangles" for short-term traders. Here at MarketClub, we've been hearing talk of a gold bubble, but what do you think?
We invite you to tell us what you think about this market that has everyone talking.
I dropped the ball yesterday and forgot to wish all those fathers out there a wonderful Father's Day. So... HAPPY FATHER'S DAY!
Adam is out of town on vacation for a couple of days at his house in Maine, so I'm filling in some gaps until he returns. Below are just some Trade Triangles and Chart Analysis Scores for a large group of markets that we looked at this morning. These aren't recommendations, but for those of you who aren't MarketClub members... consider it a freebie set of signals from MarketClub. If there are any other symbols out there that are putting off good Chart Analysis Scores, or Trade Triangles please comment on this post and share with others.
*Adam just sent me this picture from his summer house... how beautiful*
PACF_GLD = Weekly Green & Daily Red (Sidelines Position): -55 score
PACF_DIG = Weekly & Daily Red (Short Position): -70 score
These are not suggested positions, but instead just a recap of general markets. Please consult your MarketClub charts and portfolio to determine the current Trade Triangle and Chart Analysis Score status of these markets as market conditions could change quickly.
Have a wonderful Monday,
Director of New Business Development
INO.com & MarketClub