A round table from the crew down in Reno
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We apologize for a low quality recording. There was a weak connection and a lot of sharing between mics. Our quality will be back to studio quality tomorrow.
Ted Butlar—Wow!! Talk about hitting it out of the park!!
How The Coming Silver Bubble Will Develop
http://goldsilverworlds.com/physical-market/how-the-coming-silver-bubble-will-develop/
Agree with the sentiments of the guests. It is time to start watching gold. The past months it has been knocking everyone out and even putting some people to sleep but that should change soon enough.
It will change for sure. That’s when things will get really interesting in the world.
As you said in another post Bird, no one is sure which direction it will go.
It is only because of my certainty of a rising dollar that I have any doubts Al. That and the belief that equities have a long way to go before the end comes. At most I felt we would get some corrective action in range of 10% or 15% but it has not happened. If that theory does not play out then I am back in the camp that thinks gold will get murdered by ECB interventions and the devaluation of the Euro. Most commodities are deflating right now. Gold is not likely to stage a resurgence until that trend has fully played out. So my approach is just common sense…watch resources, equities and currencies closely for signs that there is a change. Otherwise it is down the hatch for precious metals for awhile longer.
If you are curious about my sentiment on the issue though I would say odds are now very strongly in favour of Mario Draghi introducing European QE within the next months. Perhaps as early as September. Maybe that is what the technical charts are conveying to us. That tells me that gold will break down and not up as the whole commodity complex comes under further stress and falls against a rising dollar. We have to rethink everything under that scenario. A higher dollar impacts the whole ball of wax. The good news is that cheaper inputs will start to feed into corporate revenues by the first quarter and that should boost earnings all over the map. So it is up and away for stock markets in that case and a whole lot of cold water on gold. Sorry to break it to you like that Al….but I am sitting on the sell button unless something material changes in the outlook. The future for metals is not all that bright right now.
You’ve got a picture of the wrong Sean there. That’s Rakhimov not Broderick.
Bingo, thanks Matthew!
I guess if you are a trader, you can make money following trends, but I think that real long term wealth involves being at least somewhat contrarian. The divergence in terms of one and three year performance between PMs and the conventional markets ranks right up there, probably just behind the late 1990s. Even if we are in a secular bear market in the PMs, they can still rally smartly, while this is an expensive conventional stock market (of course it can get more expensive as I learned in the late 1990s.)
People don’t buy bottoms, unfortunately, and they generally buy high to try to sell higher. I was thinking the S&P could get to 3000 (roughly mimicking its 1990s performance) but I keep seeing and hearing so much complacency out there that I really have to wonder. Maybe this fall will be one of those fateful autumns on the corner of Wall and Broad after all.
Sold out on Kirkland Lake (KGILF) for a $2 quick trade gain @ $5.40
Looking to buy Timmins (TGD) $1.44-1.48 range
Interesting:
” Yesterday the D-J Industrials fell short of new all-time highs (read: non-confirmation), while the SPX tagged them. Buying was somewhat strong at 70% of Total Upside to Downside Volume. Of interest is that investors have recently committed sideline cash, leaving their cash levels at the lowest in 30-years (a tip of the hat to Jason Goepfert of SentimenTrader fame). Further, Jason notes the SPX closed at a 10-year high on the lowest volume in at least six months, the seventh time it has done so since 1940. This morning the futures are flat and the euro currency is lower on more anticipated easing by the ECB.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/26_People_Forget_One_Of_Jesse_Livermores_Greatest_Trades_Ever.html