Wrapping up with Doc and Rick
Click download link to listen on this device: Download Show
Hi Peter,
I have to be honest. One of the reasons that I am currently observing and not buying is that predictions, at least from me, in this financial environment would be simply guesses. The fundamentals tell me that gold should be rising in value. Will that be the case tomorrow? It is anybody’s guess!
I think for longer term investors (perhaps even traders) your on the sidelines for now approach is most sensible… it’s all very well to make predictions or even guarantees as i believe gary did the other day but as you say, all anyone can give is our best guess.
If this is the beginning of a new bull market there is plenty of time to get positioned but until something big enough to change the long term trend in the dollar appears I remain sceptical that rallies in the PM market will be anything other than selling opportunities or short term trades.
Thanks for the daily interviews, Rick’s opinion is one i always like to hear.. Cory also is consistently making salient comments and seems to have a good read on the markets.
My 2 cents…
Gold found support tonight at a small patterns mid pivot and the dollar made a D target earlier using ricks method so it looks like at least a small correction here is possible and gold should be able to capitalise on any dollar weakness. If it can’t it will be a reality check for bulls. A rally with conviction from here and gold should head for 1231 or so and beyond that 1270.
Draghi will try to jawbone the euro lower thursday, expecting more crazy volatility thurs,fri and into next week.
Keep up the good work… and patience for now!
Cheers!
Many thanks Max. Please join us more frequently!
Hi Doc,
If I can follow up on the question I asked you earlier – I have assumed that based on your comments last week that you exited the position in GDX that you had entered in early November (let me know if I heard this wrong). At that time, you also mentioned that you would be looking to possibly reenter certain positions sometime in mid December. If I have all this right, are you still looking to get back into GDX – possibly within the next 2 weeks.
My apologies if these questions seem too direct. Let me know if I am overstepping here.
DF; you’re not overstepping. You’re correct. I still plan on re-entering a position sometime in December with the caveat —–if the technicals do what I expect.
Thanks Doc!
RUT down, TVIX up. I like it. (Not today though.)
Mike, the VIX is trading in a very narrow range—signaling a breakout coming—-there’s not much on the downside any more so it should be up.
Thanks Doc, I agree. I’m long TVIX, a 2x ETN that rises with increased volatility, and about twice the VIX.
A very timely article about volatility, commodities, and the VIX:
http://blogs.barrons.com/focusonfunds/2014/12/02/commodity-swings-could-trigger-higher-vix-readings/?mod=yahoobarrons&ru=yahoo
Thanks Doc, I agree. I’m long TVIX, a 2x ETN that rises with increased volatility, and about twice the VIX.
Gold flat-lining at $1200 is giving me the heebie-jeebies. Anybody else think the chart today is REALLY weird? It almost looks like gold is settling down on calm waters (after huge storm driven waves). ~ Brian
Rumors tonight that Russia will be announcing a gold-backed Ruble to counter the recent economic sanctions (and concomitant destruction of the Russian fiat currency)
Does it have the ability to do that, Brian?
Gold is breaking out in Japanese Yen
http://www.kitco.com/gold_currency/index.html?currency=jpy&timePeriod=1y&flag=gold&otherChart=no
Some one was trying to push the gold price to be in line with Yen and failed. Good job.
We are going up
The sellers are exhausted.
Even after yesterday’s big move they couldn’t take it down much
Step up to the plate and make your call
The bottom is in
Al you made a whopper of a statement today I think requires an explanation
You said if not for geo political issues gold would be a lot lower.
For years you’ve been a gold bull because of your fundamentals
Now you do a complete about face
I think you have an awful lot of explaining to do
Hello all,
Just to comment on that quote apparently from Martin Amstrong: “[…] AS governments need money desperately and it is resolved that WE ARE HEADED INTO ELECTRONIC MONEY, GOLD WILL BECOME A BARBARIC RELIC OF THE PAST to financially strapped central banks in Europe […].”
To me, this kind of statement is UTTER non-sense from an economic/financial standpoint. Let me elaborate a touch.
As a preliminary note, I am not a gold bug. I just happen to like the price of gold currently from a long-term investment perspective, which IMHO is cheap for “an INSURANCE” against long-term debasement of currencies.
I find the risk/reward of gold pretty much in my favor, and the risk/reward of gold related investments (PM stocks) even better from a speculation standpoint.
To go back to the topic of currencies etc…
The question is: what is the REFERENCE for ANY currency (electronic or not)?
A currency in itself, electronic or paper has ZERO intrinsic value as it is created out of nothing (ok… paper currency has a touch of value due to the paper it is printed on + the ink…but that’s close to zero enough for me to say it has zero value).
We are led to believe (mass media propaganda, most politicians, most bankers) that gold will be/is slowly becoming a barbaric relic. Really ???? I simply ask then:
* Does the IMF own gold ? If so, why?
* Does the BIS own gold on behalf of other central banks to settle some transactions between themselves ? If so, why ?
* What is the IMF looking at to evaluate the mix of currencies in order to launch the upcoming SDR (forgot this one already ?) ?
If gold didn’t matter, then Venezuela current currency crisis wouldn’t matter for the country itself. Its central bank would print print print and all would still be good, right? But why does less and less businesses want to trade in that currency ? Fear of depreciation, right ? Why is the depreciation occurring? Maybe because printing printing printing means nothing ? or adds no value ? OR, better said, it destroys value ( a consequence of the supply/demand equilibrium moving to lower price levels as there’s more supply).
So bottom line:
1) currencies REQUIRE a reference point that cannot be created out of nothing. The precious metals have always filled that role because they cannot be created out of nothing.
Otherwise, if a currency has 0 reference point, it is worth…well…nothing/0 in itself – it is just another ponzi-scheme.
2) It seems that the higher we move in financial organizations (at the top being of the pyramid sits the BIS), the MORE gold is relevant. Either these “bankers above bankers” (I call them the “Uber-bankers”) are ignorant/idiots, or this fact means something.
3) As always, the best way to accumulate something is to make others believe it is worth nothing. (see Nathan M. Rothschild “legend” w. the LSE – not sure it was called the LSE back then – the day before the battle of Waterloo outcome was know to the public).
It’s DECEIT DECEIT DECEIT. No need conspiracy: just deceit in order to get what one wants badly (or need badly).
4) People are entitled to their views and have the right to believe gold is truly a barbaric relic etc… But to me it’s like gravity. One can deny gravity as a belief. But the day one crashes, one can’t IGNORE gravity any longer. In simple terms, one can deny something, at one’s own peril.
***************
As an addendum, I’m adding below a link to a recent Zerohedge article which, IMHO, helps understanding why the Swiss political and financial “elite” were vocal for a “no” at the recent referendum. http://www.zerohedge.com/news/2014-11-25/swiss-referendum-gold-whats-missing-debate
Best to all, and GL investing.
LPG
“One can deny gravity, but one day will come when one cannot ignore it”
OK…I want to do a MUCH SHORTER follow-up to my post just above.
Something just hit me. All the discussions we have and concerns we have re: the usefulness of gold are SOOOOOOO “western-centric”.
Let me elaborate.
I think it’s fair to say that the share of global GDP from China and India is increasing.
I think it’s also fair to say that China and India will soon account for about 1/2 of the population on this planet (we’re not there yet, but in a few years, we shall be, right ?)
If we were (or lived) in China, India, HOW do you think we would be looked at if we say “gold is a barbaric relic”, it’s useless? I think chinese and indians will just look at us and feel very sorry for us.
Or actually, they would probably “agree” to that statement and kindly offer their help by offering to buy from us the remaining bits or the barbaric relic we still have. 🙂 I’m serious here.
So the point is, again, we are almost like brainwashed by some bankers and most of the media establishment to believe gold is “blablabla blablabla” just because the price is down from the Sept. 2011 top.
Although I’m not a proper whisky amateur, I take my inspiration on gold investing from Johnny Walker and its motto: “Keep Walking”.
So when I hear the (western) medias, politicians, bankers ranting on the precious metal(s), I think: “Keep Talking”.
Best to all,
LPG
“If you’re going through hell….keep going” (W. Churchill)
Al, the conventional market and dollar are topping. Tomorow (wednesday) gonna be better for gold. Today was just a relief… What do you think?