Chris Temple’s views on gold.
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Ramifications for gold should the Swiss public vote for greater reserves come Nov 30th.
To repeat The Swiss vote:
http://sgtreport.com/
Thinking the Swiss vote will go along the same lines as the Scotland independence vote went…TPTB will make sure it comes down the way they want….one way or another.
Gold now even………not even off the cost of a cup of coffee at Starbucks…….
A lot of fat in the miners/explorers still need to be trimmed. The good juniors are finding it much easier to raise $ than they have in the last two years. Personally, I have participated in a couple high risk Private Placements in the last couple months that I never would have considered in 2012/2013. My chump change but I know others that are looking to invest in miner/explorers again.
I agree Peter — I have seen this as well. Though many individual investors are selling for tax or impatience purposes again, it is considerably easier for good stories/projects.management to attract $ than was the case in 2012-2013.
Not sure why all the bearishness on the miners after a massive correction. Sentiment is at an extreme.
I agree with you and disagree with Cory when he says “the fact of the matter is the Fed has the market’s back.”
The gold sector continued to plunge while stocks went up on the last QE announcement because of market dynamics. On further QE or “easing” the reverse will happen for the same reason. Stocks are facing increasing headwinds while precious metals investments have an increasing tailwind.
Exactly right!, Matthew!
The hole in your gold argument Chris is that miners have not performed even as gold and silver rose recently. GDX plunged today and again sits below 21 dollars. That should be warning us that the market is less interested in gold than some people claim. Bounces are being sold despite the fact we are near major support and I believe there is a widespread belief that gold will indeed drop below 1180 fairly soon. That is in fact exactly what I anticipate despite the dollar having softened up a little.
By the way, do you recall my Summer melt thesis? That was the one where I detailed how we would get a 10% stock market correction before summer was over and in response wheat, corn, sugar and other commodities would rise……Anyway, eventually I gave up on the idea as summer was coming to a close. But you know what? The DOW peaked on September 19th, just a few days before the end of summer and has since dropped approximately 10% before rebounding. Sugar, wheat and corn all performed well.
So I did get my summer melt almost to a tee. It just never occurred to me it would begin on almost the last day of the season!
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TO YOU ALL KORELIN ! https://www.youtube.com/watch?v=kAaSGPp16fU
AMEN……………f………..j……………………..
Sorry, that should have read the S&P peaked on the 19th and then made a 10% correction (not the Dow correcting 10%). That date incidentally was a huge volume day that preceded the declines.
My bottom call on Crude also came in almost perfectly by the way. Early in the month my prediction was for a decline to 80 and I got that too. Weird hunh? This market loves me or I am one damn lucky guy….i just don’t know which it is.
Yes, I do recall that Birdman!
As for the miners, they did better than the metals almost all year up until now. I think some are getting a bit more of a jump on tax selling; maybe they think January will really be bargain bin time again. I don’t know. Yesterday was curious, though – methinks it possible that some money that had rotated strongly into miners here and there got redeployed elsewhere on Wall Street. Still, though, the point is well taken. The one good thing as I said above is that–regardless of renewed depression in their share prices–the underlying health of those companies that deserve it is much better today than it was a year ago.
NEWS FLASH……………CHINA now is NO.1 economy….USA.NO.2………LO^OK OUT $.
according to IMF…………….China, is now set to get in on the SDR….through IMF.
On a PPP basis…..but that is not exactly making them the biggest.
PPP…..PEE PEE PEE…………..or PEEP , PEEP , PEEP…………doesn’t matter, China is a step closer to getting in the position for the SDR basket
Purchasing power parity, Jerry (PPP). In poor countries it is less costly to get a haircut for example. So a poor person has buying power that can be equal to Western counterparts where the same style job might be as much as 20 times more costly in real exchange terms. Same for the costs of education, transportation and a myriad of services. A shared taxi in rural China might cost 20 cents but it is 60 dollars in New York for the same distance of travel. So there is an equalizer of sorts when working out PPP numbers but those do not equate to absolute wealth as you cannot enjoy cheap transport and haircuts unless you live in a very poor region of the world.
Bird………good point I guess that is why the Chinese are buying up California and NEW YORK…………..and over paying for every piece of real estate……..
Now , if we talk about the number of millionaires China has…..300million plus, compared to the total population of the USA. 300 million plus…….there are a lot of Chine-man, with a lot of PPP, …………
Jerry,
China does not have 300 million millionaires. There were only 2,378,000 millionaires in China in 2013, compared to the U.S. which had 7,135,000 millionaires.
Jerry, China has some of the most extreme poverty rates in the world where up to 10 million of its rural citizens live on less than a 1.25 daily. Income inequality is severe in some of its provinces. That portion of the population that has fallen behind ranks with Africa where incomes are concerned. So we are obviously not talking about the millionaire and billionaire class that you refer too. I really doubt that rural poverty stricken peasants are buying up New York and Los Angeles when they are busy just trying to feed themselves.
Sorry,….I missed the report on WALLSTREET…..which is always accurate, and always tell the truth…
Bird…………..10million in extreme poverty in a land of 1.2 billion is not comparable to the more than …..95million of the US citizens ON FOOD STAMPS…..I would say we have more, than 10million blacks living in extreme poverty……..Ever been in the southern parts of the USA.
jmiller ……thanks for the correction……………j
GDP…..US is bigger……….see Frank Holmes article ………
Agree. The US is much bigger in absolute terms with deeper and more transparent financial markets. We should not confuse measurement methods of size and depth and assume China has overtaken America despite its economic troubles.
My major point was……… CHINA is moving to get in the basket of currencies through the IMF………I am really not debating the situation of PPP or GDP., that is a side issue………NOT the real issue…..And since, they have over taken the USA in a small issue, ….they now have some more CLOUT , to snuggle up to the IMF, to hop in the basket of SDR and if they get in the basket….GOLD , will be tied to their currency.
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