Gold comments from Peter Grandich
Game Changer?
Just as I was about to enjoy the last day of what has been more work than vacation time, gold gets hammered on the back of news the punch bowl may be running dry. Throw in the fact that it always seems to get assaulted around the monthly employment report and one can certainly feel like its Deja-vu.
The latest plunge started yesterday when the Fed minutes showed some members want to be able to slow or stop their purchases well before the end of 2013. Others didn’t see a need for a specific timeframe for ending what we know as “quantitative easing”
Forgetting for a moment that other governments are still stimulating their economies like Japan (will likely increase its inflation rate by increasing asset purchases while adding to fiscal stimulus) and China (which plans to increase infrastructure spending and sustain loan growth), it’s a fairytale to think the FED can actually do anything but keep its foot on the gas pedal.
Why? The United States is up the creek without a paddle. Its political process has blown up and the FED knows the inmates are now running the asylum that’s responsible for fiscal policy. Because Ben Bernanke painted the FED into the corner and has run out of paint, he and his entrapped group has sent a “Hail Mary” towards the front door of the asylum letting the inmates know the punch bowl has no more kick to it and they somehow need to pull a rabbit out of the hat and get serious on deficit and entitlement reduction policies.
If you believe the inmates will do so and the FED can and will actually drain liquidity (allowing interest rates to rise due to actual tightening) well, I not only have a bridge to sell you but would urge you to stop reading this blog immediately.
Gold has been in a trading range of $1500 – $1800. It shall be pressured for the near-term and can retest the lowest part of the range. But after a decade of overcoming an overwhelming number of anti-gold waves from the investment community and the media that follows it, I believe this is just another bump in the road that leads to a $2,000+ gold price in 2013. The fact that such a view seems as far-fetch as a rookie winning the Super Bowl this year at the start of the NFL season, I’ll remain on board the mother of all gold bull markets and hope I’m not related to Captain Edward Smith.
Resemblance?
BOY DOC!
You NAILED the 1625 and 29 target points…matter of fact, according to KITCO…gold this morning hit 1624.90 and then proceeded to bounce off it like a “little red rubber ball” (that is from song in the 1960’s :))…I am glad you are on our side!
Of Course he did Marc!
But Doc is right also in that we can retest those lows again next week. There is still the chance of another push towards 1625 and silver $28.50. But we do APPEAR to be looking as though a bottom is being put in.
And not to toot my own horn, but I posted last week the technical picture that Doc was referring to, as to why gold may drop to 1625.
Stay frosty.
Yep, you sure did…Mark A….toot your own horn…it is good for you..especially for the New year celebrations 🙂
Yes, you did, Mark, and that’s why I like your postings–you either affirm my outlook or bring in points that I find interesting and then study. Thanks for your input. There’s a lot of bears out there right now for the PMs especially silver (which I put in a lower post). Right now I don’t see it but of course that can change.
It is very difficult knowing that laws of finance, laws of economics, and the laws of fear can all be twisted and set aside by the banksters and made to look like they never existed. Being a gold and precious metals bull sure requires an unshakable belief system that is being tested at every level. “We shall overcome”
PEM UPDATE
Pending hole is in lab but due any time soon.
Del is working on “solid solutions” to advance PEMs exploration.
The 1000- ft hole will be used in updating the resource.
once hole is reported drilling will start again.
So my speculation is
A larger company is looking at PEMs asset base.( I suspect its Osisko).
I also conclude the talks with the major are well advanced.
PEM will do its 8,000m program ASAP.
And no this company is not going broke as its assets are very attractive and will be JVd or an out right sale of PEM is in the works.
I also conclude the shares will be much higher VERY SOON.Investors will wake up one day and see a much better future for PEM and it will come with out warning.
I bought some yesterday and was shaking my head a bit but thanks for the confidence boost. A buyout candidate is great but waiting can drain resources so this sounds good.
Dan
I am keeping and eye on Colossus Minerals who is sending a bulk sample to Met-Solve Laboratories Inc. in Vancouver. Mining conditions and keeping talent on board deep in frontier of Brazil is a challenge, but ounces of AU-PT and PD per ton solves a lot of problems. The assay tables of this bulk sample could be boom with a little chance of being a bust. The results should be out mid to late 1Q.
I am also curious to see Kaminak’s Coffee project technical report to see how much of the 3.2 million ounces of AU reported in last month 43-101 are situate in an economical open pit scenario. Nicely V shaped shallow channels is something to hope for but seldom does such a scenario present itself. Most of their ounces are close to surface that leaves how it presents top to bottom.
Dennis,
I sold most of my Yukon stocks on the “power issue”…except Ethos. I think Kaminak is a very good long term hold….but, I went another direction and bought CORVUS.
ANOTHER $2000 gold prediction…that’s over 2000 of them in the year 2000…STILL WAITING While the Gold Bugs GUESS AWAY AND PRETEND THEY KNOW what’s coming up.
Buy ow sell high don’t hold anything…it’s all one big manipulated joke of a market.
reo,
When was the last time you witnessed a producing gold or silver mine having a problem finding a buyer for their target metal?
For that matter reo when was the last time you saw a pawn shop owner having a problem selling his scrap gold and silver to a smelter?
If as you phrase “it’s all one big manipulated joke of a market”. With that statement I do not take issue. At that point you want to own liquidity. And while one must conclude in such an environment liquidity is a wise place to be why not preserve you purchasing power at the same time you are getting liquid. It has worked out for 12 years running and the fundamentals of the metals are better than they were in 2000. reo I embrace your ridicule!
It’s a joke you can profit from if you would just learn to control your emotions. Of course, that is impossible if you don’t first do your homework.
BINGO! Matthew
It’s good to have a contrary opinion——come back, REO, in one year and ask us what you think then.
Hey guys,
Agreed…Reo…I can honestly say I really do understand your frustrations…but, do yourself a favor and dont be a MINUTE late when things start to turn consistently up…I think Dennis makes a very good point to consider.
I agree with that Richard.
Would hate to see this site turn into another King World News – “all bull – all the time”. 🙂
And so I welcome opinions of REO and other bears.
That being said, I bought more CEF.A on TSX today.
KWN is worse than that, Irwin.
They seem to live in a fantasy land over there and have EVERY excuse in the book for why gold and silver don’t move higher. I stopped listening to them awhile back and haven’t even bothered to return. I’m sick of their predictions and then excuses as to why their predictions didn’t pan out. I’ll never forget one interview where they host and guest believe in this conspiracy that the “banksters” were listening to KWN to discover the “feelings among the gold community” in order to “raid the gold market” – BARF!! I’m sick of it.
??? KWN has some great regular contributors imp.Turk,Embrey,Sprott,Rule etc.
KWN is on my listening list as well, but as always, we have to stay objective and form our own perspective. None of those guests has any control over Bernanke or manipulators or the Fed or world calamaties, et cetera. We seem to be at one of those points where you need to have a view and stick to it, regardless of lies and ignorance and contrary movements in the markets. JMO
Reo=noise, not a legitimate “contrary” opinion.
Irwin, I couldn’t agree more. With my TA I don’t “wish” my positions; I call it as I see it and attempt to be as objective as possible—–the next 3 weeks are going to be key technically.
Mark Alan / Richard;
I like to keep an open mind to the possibility of the day coming when we need to get out of precious metals, and that’s why I like to hear the other side of the story. And I don’t mean a temporary profit-taking top at $2500, $3500, $4500 or wherever it is.
Mr Sinclair has promised that he will tell his readers when the time has come to sell, however, I’m not so sure he or I will live long enough to see the day. I don’t have adequate imagination to see how the gold run will end … perhaps Tesla’s dream of free energy for everyone will be implemented. What will all the oil workers in the world do then?
Or people might stop ingesting sugar and the unemployed oil workers can start producing and distributing fermented foods of all kinds, the population stops gaining weight and cancer becomes an obsolete word.
That’s as far as my imagination can take me; it can’t see the day when Central Banks stop “printing”, when prices in the grocery store no longer change from week to week but stay the same year after year; when ONE blue-collar wage provides home & hearth for a family of four debt-free.
Nope, I can’t see that … so it’s “buy the dips Myrtle” and never book a loss during a raging bull.
Off Topic – for your viewing pleasure – some cool photos.
http://justpaste.it/3ky
Irwin — Tks for great pictures. Rgds
Was watching fast money tonight and Carter Worth from a TA standpoint was very negative on silver—–he said that silver would in all likelihood take out 25 and then 20. All the other sycophants on the panel chimed in and thought silver was broken. Why do I bring this up—–because the more bears out there the better.
Also,,
Another thing that is going for the fundamental case in silver is the Clean Energy stocks. Go take a look at some of these solar stocks and they are breaking out big. Saudi Arabia wants to expand into solar energy in a big way, as does Pakistan and India. They are looking to use it for residential power infrastructure.
Yep..and bingo to you too!
Agreed……absolutely, Doc….cant believe that..the more the MSM opens their mouths the more I go the exact opposite…
This just came in from a listener and I thought you might appreciate reading it:
Al,
Just listeded to your interview with Rick Ackerman via Kitco from Dec 19. Gold traded today on it’s low at the exact figure that he said it would. Amazing. Just thought you may wish to follow up with him on the next move. I have not followed Mr. Ackerman, just wondered if it was a common thing to be this accurate, and if so, does he have a site at which to get his projections as I would be interested. Thank you for your services.
Back at you soon,
Big Al
Today’s price action in gold very encouraging. As mentioned in an earlier thread gold was down $32 at one point and in one flash was only down $21. This showed big money and big support. It then came roaring back to close only down $7. Today was nothing more than a failed take down and shakeout. Look at the facts. Who in their right mind would sell gold because the FED said they might stop QE a year from now? Total nonsense by the anti gold crowd. It was a weak attempt to flush out weak hands. Things are getting very ugly and we need to be on guard. Think about it logically. You wake up today a gold owner. You hear the FED may slow or stop QE a year from now. You call up and say “sell me out of gold” Total BS!! No – you say: 1) It doesn’t matter what the FED says, it matters what they do. 2) Anything can happend between now and a year from now 3) Even if they did stop QE a year from now the system is already doomed and there is already even liquidity and debt for gold to skyrocket. 4) They can’t stop. The minute they take away the punch bowl this whole phoney recovery comes crashing down. The anti gold cnbc media crowd is doing their best to kill this secular gold bull market. Obama and his left wing Keynesians comrades, Krugman, Gore, Reid, Wasserman Shultz… are destroying this country. The final battle of armageddon is in 60 days when Obama pushes to take control of the debt ceiling. The radical media he has in his pocket will be front and center drumming up support from a public that has all but fallen over dead. The GOP will once again be afraid to get the blame. This is check mate. Sit tight and be right. Don’t let the bull throw you. The big money is made in the big move!
James, your point is well taken about how gold bounced back. I was up at 5 AM and couldn’t believe my good fortune.
“Obama and his left wing Keynesians comrades, Krugman, Gore, Reid, Wasserman Shultz… ”
Reid isn’t a left wing Keynesian. He’s a corrupt, dictatorial commie.
Good post. Every few weeks the media gloms onto another Critical Moment. It was the same last year with the Grexit. What was it, something like 22 special meetings, and the markets tanked and soared with every anonymous comment out the back door? Greece was gonna collapse, Spain, Italy, Portugal, then France, then England, Ireland, Japan… We’re being played, folks. The end is already written in the USA debt figures, with no political will to even touch the real big decisions that need to be made. Never mind the paper numbers. Focus on the LOOMING LOSS OF CONFIDENCE IN THE WHOLE SHEBANG.
James typed “Obama and his left wing Keynesians comrades, Krugman, Gore, Reid, Wasserman Shultz… ”
John writes “Reid isn’t a left wing Keynesian. He’s a corrupt, dictatorial commie.”
The difference between the two is whether or not you have control of a sizable army.
Wasserman Shultz has one supposed minority House vote.
Reid is majority leader of a corrupt Senate.
Gore is a rich fear monger who likes massages.
Krugman’s has an employer that buys ink in barrels.
All of the above share scary collectivists beliefs but none of them have DIRECT control of a sizable armed force.
Then there is Obama………………………………..
Fine, then Reid is a corrupt, dictatorial commie wanna-be.
🙂
Most dictatorial commies start out as a dictatorial commie wanna-be so we should keep an eye on him!
Re the comments on KWN who I happen to listen to.
This is no different to the KEReport day in day out week in week out.
He’ a good guy he’s an intelligent guy …… ad nauseam
buy gold and silver that’s what we’re doing …….ad nauseam
With the greatest respect to Al Korelin before you go casting aspersions on KWN trying looking in your own backyard for respetative commentary with seemingly no results and excuses.
Same meat different gravy.
Just don’t think you are being fair to Eric King on this and while I agree some of the interviews seem biased you cannot say the same for guest like Art Cashin.
Cheers
TonyW
lol maybe time to buy platinum?
http://rt.com/usa/news/trillion-dollar-debt-coin-353/
Palladium.
Evening Tony W!
I have no problems with many guests from KWN, in fact I believe that Ann mentioned some of the greats in her response to my negative criticism. But you are right in comparing this site to KWN – in regards to promoting precious metals.
My argument is when Mr. King practically puts words in some of his guests mouth and pushes them into saying things they don’t wish to say, or had no intention of saying. I can’t say I have heard Big Al do that, but then again, I don’t drop by very often, as I too don’t want to hear about “buy gold buy silver…ad nauseam”
I did enjoy it when Art Cashin, James Turk, or Sprott, or Norcini, or the gentlemen from CMI were interviewed, but then he would bring out the Secret London Trader, who almost always came out as gold was about to get hit. He was about as contrarian as Dennis Gartman.
No my criticism isn’t with KWN’s guests themselves – they are top notch and have great wisdom, but it is actually with the host Mr. King. Sorry
stay frosty!
Mark…Thanks for the clarification regarding KWN.
Thread derailed:
Apologies to Big Al:
I promise never to mention King World News again 🙁
http://www.militaryphotos.net/forums/album.php?albumid=1846&attachmentid=151290
I’ve seen worse Irwin!!!!!!!!!!!!!!!!!
I don’t know about $2000.00 gold in 2013 but I do feel we are bottoming in the PMs and the bottom could be in next week. Early this morning before our conventional markets opened, gold hit about $1628.00 and silver got as low as $29.19. I took the opportunity. Next week we will once again challenge those lows when the conventional markets are open. The odds are very good at that time that we will rebound. The key week technically will be the following week. The charts should give a good indication then whether we have seen the lows short-term—right now they don’t give an indication of a significant move down. The action of various PM stocks and ETFs today have hardly budged in the sell-off today. In fact, some have actually increased. Folks, we appear at this time to be bottoming out in the PMs. I also took the opportunity today to purchase some of the PM stocks. Next week in all likelihood I’ll become more aggressive depending on a number of TA signals. I’m not making a recommendation here and am not an investment advisor. 2013 will be a year where we continue higher in the PMs and the stocks. I still feel stocks will outperform and there are good odds silver will be the parent—-as TA unfolds, I’ll be able to give you a clearer indication. 2014 may be an even better year—-put the Fed and whatever they say in the rear view mirror.