Friday Morning with Gary
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“re copper” … keep an eye on that $US Index gap between 94-95.
Potential dollar pattern in play.
http://blog.smartmoneytrackerpremium.com/2015/01/chart-day-65.html
December 31st, Central Fund of Canada was 10.1% below NAV. Does anyone know what the discount was at the 2009 low? Happy New Year to all!
I want to know that too. I don’t recall it ever had more than a couple of percentage discount before 2010. Now both CEF.A and SBT.UN have over 10% discount. It is by far the worst I have ever seen. However, I started to buy CEF.A after 2009.
The answer is at the bottom of the second chart on the following link. It looks like the premium at the 2009 low was +20% ! ! !
http://thedailygold.com/precious-metals-starting-show-bullish-signs/
You have to be careful, though. CEF has been around since the mid-1960s, but has been overshadowed, since the inception of GLD and new closed-end ETFs (e.g., PHYS.) I personally like OUNZ for gold and PSLV for silver.
Brian
Brian, great information. This is consistent with my impression the discount was not more than a couple of percent before this down turn. Now it is comparable to the time at year 2000, which is the most bearish time in gold history. 2008-2009 seems totally different then now. I may buy more CEF.A (NYSE equivalent CEF) or SBT.UN (NYSE equivalent SBT). PHYS seems to have a smaller discount and larger premium always.
However, the premium potential of CEF seems lower than before. In 2011, I sold a lot of SBT.UN and CEF.A, the premium was only 7%.
Gary, what do you think about the damage for the shale oil play in US relative to other countryies considering all other oil producing countries have lower and lower currency like Canada?
Gold prices sensitive to interest rates below inflation. Best available chart of interest rates vs. inflation since 1962:
Question for Gary: why dollar is moving in trend with gold today?
I covered that in the interview. The bullion banks are just whipsawing gold and fleecing the funds. At some point the currencies will reverse and gold would then have the potential to give us a tradeable rally for a month or two.
I recall months ago reading articles saying to expect big swings in the gold price.
What Gary is talking about is pure corruption, I agree, I see the entire industry as crooked, there might be a few companies that try not to be but the corruption is probably too entrenched for those few to have much effect.
Actually I have read articles saying that just by selling PMs at these manipulated prices the miners are complicit, one or two have tried to get other miners to stop selling, but to no avail to this point as far as I know.
SilverDoc has this article as to why he sticks with physicl, corruption who needs it?
Ugh! This Drama is EXACTLY Why I Stick To Physical Silver!
Bob Moriarity was saying a little while ago that 10 out of 11 years? you would have made money buying around mid Dec but don’t forget to take your profit.
Hope Im smart enough to take it should the time come, lol
I think there were some limits put on gold and silver as to how much they would be allowed to rise in a day, I wonder if someone is expecting something?
A market crash would blow the circuit breakers. I suspect these guys are thinking far in advance of that actually happening though, bb. At least a years time distant. But you know what…it does not really matter. Gold could hit its limit for a week straight and still go exactly where the market wanted it to go.
Actually, I didn’t think about they could be preparing for a year or more away.
And I agree with you, it doesn’t matter.
Miners appear up whilst gold, currently, is just up a buck. Isn’t this what happened last year prior to that January/February rally in the miners?
Gary Doc may have something to tell you. He may have one word for you. You know what that is Gary?
“Miraculins”
THE DOLLAR WILL GO UP ! AND OIL DOWN !
The rally in gold from 1205 on 30th december 2013 to 1382 on the 14th of March 2014 and gdxj from 30.1 to 44.83 progressed up slowly. A day or two up and a day down. The 3 muskateers appear to want to see a HH to da moon swing to be convinced that the miners and gold can stage any kind of rally.
My conclusion from the daniel code and gold tent (great site Glen, thanks) is that gold and the miners should rally for now.
Good interview copper: https://www.youtube.com/watch?v=039xuYSc0H0