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Morning Commentary from Gary Savage

Big Al
June 20, 2014

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21 Comments
    CFS
    Jun 20, 2014 20:16 AM

    Watch silver, as it’s in short supply.

    Watch bonds; that market should crack first.
    The economy is pathetic, in my opinion. Government spending and taxes are a total drag on growth. The economy cannot grow until spending is cut, and more importantly taxes are cut.
    But we are just spinning our wheels until everything collapses, because we are buried in debt.

    Increased money supply above economy growth rate always sooner or later ends up in currency devaluation/price inflation. So it has been since money was invented.

      Jun 20, 2014 20:43 AM

      Gee CFS,
      Pretty basic….and I didnt even get my PHD in economics like the central bankers!

      Jun 20, 2014 20:59 AM

      And the crushing burden of un-Constitutional regulations.

        Jun 20, 2014 20:14 AM

        Getting to be a crushing burden, Wayne!

      Jun 20, 2014 20:13 AM

      Valentin Schmid discusses this on our Weekend Special.

    Jun 20, 2014 20:18 AM

    I think copper may be forming a H&S pattern that might suggest another big decline. Can’t quite be sure yet. Gold meanwhile did not do much follow through. Not what I thought should be a follow up to yesterday. Silver has performed though and the G/S ratio is narrowing. Fwiw.

      Jun 20, 2014 20:13 AM

      Still a “b”-wave trap. And now the “c”-wave will be 1.618 the “a” wave, which from the $1322 top yesterday will take gold down to about $1224 which, interestingly enough, was one of the targets if “c” = “a”. So Fibs are still in agreement for this still-unfolding a-b-c wave structure. Heck of a head fake, though, reminiscent of the pop back in September of 2008. That one rolled over and died, too, forming the final bottom later in the Fall o 2008. “plus ça change, plus c’est la même chose”

    Jun 20, 2014 20:34 AM

    G/S ratio got slammed this week (;-) IMHO it could correct a bit like Doc says over the next week. I thought this chart looked bad but it carried on longer before the megaphone collapsed.

    http://stockcharts.com/h-sc/ui?s=$GOLD:$SILVER

      Jun 20, 2014 20:48 AM

      Dan,

      GSR collapse is always bullish for both gold and silver. It happens mainly in the left side of the peak.

      BTW, you were talking about a native leader trying to block the Northern Gateway pipeline and not sure where the money comes from. I heard a report by a reporter a couple of years ago. She said according to her investigation, two large US charity organizations have given between 1 to 2 billion dollars to BC environmental organizations and native bands in an attempt to block the pipeline. The purpose might be to prevent oil from going elsewhere other than US.

        Jun 20, 2014 20:48 AM

        Unfortunately I forget what it was.

        Jun 20, 2014 20:21 AM

        I don’t blame them for defending themselves but when the global environment is used to manipulate sovereign economic decisions then pawns are made of the natives.

          Jun 20, 2014 20:47 AM

          This is the way US carries out its business anyway. They will directly get involved and disregard sovereignty. I am sure US has put tremendous pressure on Canadian government as well. Otherwise, we cannot explain the passiveness Steven Harper has shown towards the Northern Gateway. He kept requesting Obama to approve Key Stone but got rejected every time. We can only get ~$60 for our oil even the international price is over $110. We cannot ship out our gas. Now Alberta oil/gas companies are really on the edges with a lot of service companies laying off people. However, oil/gas industry is booming everywhere else.

            Jun 20, 2014 20:16 AM

            Interesting isn’t it Lawrence!

            bb
            Jun 20, 2014 20:11 PM

            I see Harper as an Obama puppet that has other priorites than Canadian people.
            He is such a puppet he is willing to kill kids in Lybia, support the bombing of hospitals and schools in the Ukraine and oppose Putin, forget the environment, American/british oil profit is far more important to him than environment, support Isreal and their “crap” etc etc.
            No point putting lipstick on a pig they say.

        Jun 20, 2014 20:15 AM

        Two large charity organizations? Any idea who they are?

          Jun 20, 2014 20:35 AM

          I did not remember them or she did not give names. Since I did not work in oil/gas companies at that time so I paied no attention. I will try to get it. It must be in one of the places like Financial sense or KWN I follow. I will try to find it.

            Jun 20, 2014 20:52 PM

            Thanks Lawrence

    Jun 20, 2014 20:45 AM

    Remember, most news stories are for diversion and misinformation. The “Agenda” of the global elite is to bring America down to 3rd world status, to “level” the playing field as it were, and to “atone” for America’s huge debt and excessive lifestyle, so there are no more “glory” days planned for the old USA; put a fork in her, she’s done as far as the globalists are concerned. Jacques Attali, a heavy hitter who helped form the EU, said in his book “Winners and Losers in the Coming New World Order” that in the 21st century American’s will be the next “boat people”, leaving the country to find work, or stay home and live in poverty. It’s the movement of goods and labor across borders, the so called “free trade”, that is used to destroy regional economies like the rust belt of America. Gradualism followed by a punctuated event is how they like to work.

      bb
      Jun 20, 2014 20:44 PM

      I didn’t read that book but I have heard this Idea about bringing the US down to “level the field”.

    Jun 20, 2014 20:07 AM

    Gary,
    You said that you could see gold rally into september/october at around1550. You said you would take money of the table there. Im curious as to what you see year end and 2015 with gold/miners. I would really like your take please.

    Jun 20, 2014 20:41 AM

    Gary-

    Perfect buy on June 5. Great call!

    I have been skeptical of you in the past, but I have to admit that you nailed it this time. And, yes, everyone else was frozen like deer in the headlights.