How skepticism plays into the start of a bull market
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NICE ARTICLE…………THANKS bj……………………ootb
So right Cory: Loads of nay-sayers getting ruled by their emotions. Another voice of calm sanity is that of David McAlvaney. Inflation is a light sleeper and boy when it wakes up PMs will leave the station to leave the doom watchers only eating crow!
Not if we switch tracks with the trend Andrew! I don’t know about you but I am not fixed to any side of the play. Just what works. I mean, who cares if gold goes up or it goes down. Same difference to me.
If you’re on board it makes a big difference in the price of gold.
OK, for anybody who might care, I am going to change over to making a more bullish comment on gold as of 10 Sept 2014 (it’s down on the 11th to £761).
The huge falls in gold in 2013 were not really on any US dollar strength. I think it was just flight of speculators out of the gold market.
Now we have the US dollar showing strength at 84 on the USDX and gold is drifting lower with a few quite nasty downdays of 1-2% falls in the -$20 zone to pricdes that Doc has been mentioning.
Firstly, gold has not crashed this month (yet) despite quite significant US dollar strength.
Secondly – what I noticed last year when we had the lows near $1180 in June and December was this:
Arguably gold made an equal or very slightly higher low in December 2013 in US dollars compared to June 2013 – but it spent longer near the low and it MADE LOWER LOWS in Pounds Sterling and in the Euro. So the picture in other currencies looked significantly more bearish for gold than the USD gold price indicated.
Then we had the January bounce in gold to $1390 and subsequent correction and then some smaller bounces and downmoves and here we are not far above $1200 basically.
However, in Sterling and Euro, the price does not look as weak this time. Sterling gold was at £772 today, well above its December low at around £720. The current price if it holds is near a recent low that is the 4th or 5th in a series of higher lows since Dec 2013. Euro gold looks similar, not actually plumbing the adepths right now.
As for silver, well don’t even talk about silver. It’s practically at a triple bottom – or is it a quadruple one? I have lost count already.
I think that Palladium is up because it’s mined in Russia. Silver and platinum are not totally dominated by Russia.
We have to wait for the post Mandela crisis inSouth Africa to take off before platinum moves up. Meanwhile, I would doubt the car demand will be much of a positive facot for Pt or Pd. I reckon high Pd price is just supply fears.
I like R|ick’s comments on 1982 and 1987 regarding stocks. I am wondering if the next rally in gold will be like the 1982 or 1987 rallies in gold. It’s all looking like the 1980s at the moment (except interest rates of course!)
GO RICK…………..GREAT COMMENTS…………………OOTB