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Will investors wake up to the gold market or will it be forgotten forever?

February 19, 2015

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145 Comments
    Feb 19, 2015 19:33 AM

    Surely a crash landing inevitable by some black swan somewhere.
    Grexit still in the balance; Russia still unclear as to where it goes with Ukraine.
    Chinese New year etc, etc.

      Feb 19, 2015 19:25 PM

      Good analysis from Gary, well balanced and probably pretty realistic.

        Feb 19, 2015 19:48 PM

        Thanks Dave,

        Gary is pretty good!

        Feb 19, 2015 19:02 PM

        Agreed. Good interview guys. I for one was not convinced of the bounce last Friday and shorted the Jr Miners with JDS in the premarket going into Tuesday and made some cake.

        When gold popped on Wednesday I missed the initial move because I was stuck in meetings at work, but didn’t buy into it because I still didn’t see real conviction. My thoughts were similar to Gary’s, when that pop happened on Wed. It was probably just some over-eager gold bugs that jumped at the first up-tick, and it will likely be a head-fake to fleece the sheeple. It turned out today on Thursday that is exactly what it was and it fell again into the close, and then even further after hours.

        Gold is in limbo and there is a case to be made for a counter-trend pop up, but one could make the case for 1180 or 1187 as Rick A. called for. If there is a pop up, it is very doubtful there will be enough ummph to get past 1308 or above. Gold missed it’s opportunity to resume the bull trend at the end of Jan/first week of Feb. When it didn’t correct down all the way on the 29th and spiked on the 30th, it started the gradual descending trading range for almost a month now, instead of a quick reversal and then a continued upleg. It has sealed it’s fate to go down into the late spring/summer and bottom with the rest of the commodity complex. We are going to get a very nice window of time to accumulate, and like Doc has said, there is no rush.

        If gold had high-tailed it up in the first week of February, it would have been an explosive move taking out 1323, 1347 and 1382 and resuming the bull. Now that it is the slow grind down, it is a perfect time to cherry pick the quality names from March – May when they get beat up one last time. However, there will be a short term trade for a week or so where Gold should pop to test 1244.70, 1259, and maybe 1272.85. It will turn back down again afterwards though, so stay nimble.

          Feb 21, 2015 21:51 AM

          Here is a short snippet from an interesting article from Monday on Kitco from Mark Mead Baillie, titled “Gold Gathers Itself While the S&P Defies the Economy”. I think it is interesting that he also highlighted the strength we normally find in Februrary in Gold that just hasn’t been there, and some of the resistance levels we have discussed the last few weeks:

          from the article:

          “Many are wooed “Be mine!” ’round the Feast of St. Valentine … ‘cept if yer Gold. February being a month wherein the yellow metal throughout most of the millennium has been a proven positive performer, (over the last 14 years averaging a Lovers’ Month net gain of 1.4%, including those bettering 3% in ’02, ’05, ’08, ’10, ’11 and ’14), instead has found this year’s Cupid to have come up stupid.

          To be sure, as thoroughly documented in the last three weekly missives, Gold truly had “gotten ahead of itself” vis-à-vis the near-term valuation relative to BEGOS (Bond / Euro / Gold / Oil / S&P). Now, (finally), Gold has completed its rather ill-romantically-timed requirement of reversing back to this particular measure of valuation. As we below see, price settled yesterday (Friday) at 1228 and the oscillator (price less the smooth valuation line) at the graphic’s foot has returned to zero after having been excessively high (+136 points) those few weeks back:

          Still, if there remains any good news for February, ’tis but half over and thus there’s the chance to recover. Also good is Gold’s having dug in its heels to essentially gather itself together, rather than doing what in recent years had oft become ongoing week-over-week slides, this time instead posting just the barest of skids for these last five days, and therefore keeping the parabolic Long trend (ascending blue dots beneath price) intact. What we’d really like to now see, given that Gold is again re-aligned with its BEGOS valuation as just described, is a push back up into the 1240-1280 resistance zone as bordered by the purple lines in this next chart of Gold’s weekly bars…..”

    Feb 19, 2015 19:34 AM

    LIKE I TOLD YOU GUYS YESTERDAY, NOT TO GET EXCITED about the price rise in GOLD…………THE RIGGING BOYS WOULD BE BUSY, and they ARE………….THESE GUYS are beyond CRIMINAL, and the BALTIC DRY INDEX continues to FALL, now at 509 POINTS……….LOOK how QUICKLY we fell through the 5 HANDLE on the BDI……….A FALL INTO THE 4 HANDEL will signal that the WEST COAST DOCK STRIKE is beginning to have an EFFECT on the INDEX, it will continue to FALL………….the END GAME IS HERE FOLKS…………..this is ALL THE RIGGING BOYS have LEFT !!!!!!!!!!!!!

      I asked you last week , if the DOCK STRIKE had any effect……….your answer was NO.,,,

      NOW, have you changed your mind?….by reading the above it would appear so….thank j

        Feb 19, 2015 19:48 AM

        AT THAT TIME WE WERE ABOUT to go into the 5 HANDEL from a 6 HANDEL on the BDI, and WITH THAT MOVE we are DROPPING SHARPER THAN EVER BEFORE……………A 4 HANDEL would DEFINITELY have to include the beginning EFFECTS and would have to include the WEST COAST DOCK STRIKE as well…………..THIS THING is NOW MOVING AT LIGHT SPEED, so if that were to happen, you have to include that STRIKE…………..it would at that point only become LOGICAL.

          I thought it was logical…….when I asked it……………OOTB…….out of the box thinking stay on your toes……………nimble and quick…..better to be early than late.
          thanks …………………………………j…………..

            Feb 19, 2015 19:49 PM

            Nimble and quick is definitely the best defense now!

        Feb 19, 2015 19:19 AM

        It has to J. Import/Exports equate to 3% of US GDP.

    Feb 19, 2015 19:36 AM

    “Will investors wake up to the gold market or will it be forgotten forever?”

    Such concern/uncertainty is a bullish contrary indicator. I think it’s emotional investors that are overly scared here.
    http://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=5&mn=2&dy=0&id=p31270574764&a=389600417

    Feb 19, 2015 19:37 AM

    The conventional markets appear to have hit a plateau though? Perhaps they are just pausing for breath before rising further.

    Feb 19, 2015 19:41 AM

    Don’t worry Gary, the East is not as emotional as your stupid gold bugs. Your gold bars in Fort Knox is flowing to the China and India in a big way. Your people may be too late when they wake up.

    Look at how Chinese buy gold.

    http://news.longhoo.net/nj/njxw/content/2015-01/24/content_11438691.htm

      Feb 19, 2015 19:43 AM

      The gold which should belong to you is sold cheap and gone forever.

        Feb 19, 2015 19:00 AM

        Ha Ha! Funny Lawrence. Are the Chinese mocking us now? Are you the spokesman?

          Feb 19, 2015 19:05 AM

          Ha ha, if I am the spokesman, I will say the opposite. They definitely prefer to buy it cheap. I think they are thankful to US. Hi, Canada has no gold. We can only watch or buy.

            bb
            Feb 19, 2015 19:35 AM

            The joke will be on China if Yamashita’s gold exists. Heck Harry Dent would be proven correct with his $300 prediction.

            Bird, you have any ideas today about gold and oil?

            Feb 19, 2015 19:52 AM

            Hmmm… It is nice to get that gold too. Where is it?

            My gold fish has more brain than Harry dent.

            ditto..Lawrence……

            Feb 19, 2015 19:38 AM

            I think we can go up and challenge 1231 but today is just a little consolidation and holding pattern.

            bb
            Feb 19, 2015 19:51 AM

            Thx Bird, thought I would attempt to catch a bounce.
            Marshall Swing says he thinks Yamashita gold exists, he just mentions it on Silver Doc.
            He seems to agree with M Armstrong as well, course Mr Armstrong figured dow at 32000 in 2015. Maybe I guess.
            Im listening to an old radio broadcast by Sterling Seagrave, he has a guest that wrote a book on the gold. He is asking the same questions as Hudas, no need for this financial collapse.
            Guess Hudas is not the only person that thinks it exists.

            Has anyone checked out poe? oil, expecting drill results in a couple weeks, 80 million in the bank.
            Looks interesting to me, if it was gold I would understand it better but I know squat about oil.

        Feb 19, 2015 19:51 PM

        The thing is that the American people are unlikely to punish their bankers and politicians for their crimes. After all who who is going to bring the evil doers to justice while Sally soccer mom and Joe six pack are watching the boob tube and getting their entertainment fix? The Chinese and Russians? The Sheriffs? Ripped off investors? John Hagee? The politically correct gangsters will skate on this one and will be back to business as usual soon enough.

          Feb 19, 2015 19:54 PM

          Be interesting to see what you think about segments 7 and 8 in the upcoming Weekend Show.

      Lawrence ,,,it is well past the time to wake up……….johnnie walker six pack has already been about 10 years to late………………….

      Feb 19, 2015 19:52 PM

      I have been for an awful long time Lawrence.

      Best to you.

    Feb 19, 2015 19:50 AM

    I posted this yesterday..

    Doc Fan,
    Sorry for the late reply as I have plenty on my plate currently. Today we had a bounce of that 1198 region. Although it was not the pop that I was expecting, it has had some follow through into the midnight hours. Personally im not sure of what to think of with this weak pop. Im invested 1/4th a position but frankly 1187 keeps screaming at me. With options expiry on the 24th, I would have thought and remain keen on another smack down tomorrow and Friday. I could be very wrong and I will see what the morning brings.
    good luck to all.

      BDC
      Feb 19, 2015 19:15 AM

      How would 1187 convert to GLD?

        Feb 19, 2015 19:27 AM

        About 114.14

          BDC
          Feb 19, 2015 19:33 AM

          Thanks… I have strong support at 114.61

            Feb 19, 2015 19:42 AM

            That would be 1192 or so…

          Feb 19, 2015 19:38 AM

          BDC matt pretty much answered the question 🙂

          sorry for late response.

    Feb 19, 2015 19:51 AM

    Gary,

    Valid points today. Im buying into this breakdown today. Should complete 2/4th today of trading positions.

    Feb 19, 2015 19:53 AM

    Bought back too many xop yesterday and more today to average down and got with a small profit from a big potential loss. I took a large gain on Tuesday.

    bb
    Feb 19, 2015 19:53 AM

    Interesting thought about young people not being interested in gold.

      Feb 19, 2015 19:58 AM

      Yet a third of the metal in their mobile phones are rare earth metals.

    Feb 19, 2015 19:00 AM

    Greece give Europe an ultimatum.

    http://www.zerohedge.com/news/2015-02-19/greece-gives-europe-couner-ultimatum-accept-or-reject-our-offer

    My hat off to Greeks, they are much tougher than the begger on my street corner. The other day, he picked up one loonie I dropped on the ground and said “thank you”. I felt bad I did not picked it up and handed to him. If I see him again, I will give him another one.

      gold is ready to head higher…………….

        armchair elbow indicator tells me so………………..

          Feb 19, 2015 19:14 AM

          Things will drag longer than people think and finish before they realize it is the end.

            I agree…………we are now into year 4 in gold smashing…….and 8 yrs of zirp……..

            Feb 19, 2015 19:38 AM

            J. US will have a lot of advantage due to its reserve currency status. She can go much further than people predict. However, when the tide changes, it will be a tsunami which will send her to the deep sea of default and currency flow reversal. Most other places will get a second chance.

            the tide is changing today…………….Here is one for you ……FOOD STAMPS are to be cut, anyone on food stamps for more than three months, the ride is over…..no more FREE FOOD.

            Feb 19, 2015 19:54 AM

            IF THEY STOP FOOD STAMPS…………….GRAB YOUR GUN.

            I AM going to rent some of my finer pieces out to the rich in the MCMANIONS….

            rent the guns out,,,,,but, the bullets will be a lot more expensive……..

            Feb 19, 2015 19:07 AM

            Off course, hungrey people are worse than lions. Machine gun is the best hedge for crisis. I just pick up archery as a hobby. Hope Canada has enough food.

            Feb 19, 2015 19:41 AM

            I have lots of friends farming near Calgary Lawrence. Some family too. Let me know if you are short grub and I will have someone drop off a sack of grain for you 🙂

            Bird……do any of them us MONSANTO SEEDS…………….

            use not us………..

            Feb 19, 2015 19:59 PM

            Great comments down below or maybe up above as I don’t know where this will show up.

            What is this about food stamps. I have not heard that.

            Regarding guns, unfortunately I have to agree and I am very sad to say this!

            Comment on FOOD STAMPS……today on early morning news in Indiana , it was reported the current system of free food forever, is ending. The voucher will only be for three months, and the persons must be in a job training course, school, etc. No more stay at home and collect forever…………………..

            Feb 19, 2015 19:19 PM

            About time. It’s a national embarrassment.

      Feb 19, 2015 19:56 PM

      I think that is only temporary, bb.

      Feb 19, 2015 19:56 PM

      Don’t beat yourself up Lawrence. You did help him out and that is more than most folks would do.

    Feb 19, 2015 19:03 AM

    *** RIGGING BOYS PLEASE NOTE *** BECAUSE I KNOW THAT YOU ARE READING THIS……..PUTTING YOUR FINGERS on the RED BUTTION and knocking down the GOLD PRICE at this POINT is now a TOTAL WASTE OF TIME ” RESISTANCE IS FUTILE “………the BALTIC DRY INDEX EXPOSES IT ALL……………WHEN WE SEE A 3, 2, AND 1 HANDLE ON THE BDI, WHAT WILL YOU SAY AND DO THEN………………FACE IT…………IT’S OVER !!!!!!!

      Feb 19, 2015 19:21 PM

      No Mark, Its not over till the gold bugs cry and the fat lady sings Uncle!

    Feb 19, 2015 19:07 AM

    ………….PEOPLE……..this whole thing is DEFINITELY OVER by the END of 2015 !!!!!

      Feb 19, 2015 19:10 PM

      Mark…same was said for the end of 2014…..don’t count on it ending any time soon….10 years maybe…regards…

    Feb 19, 2015 19:18 AM

    Gary,

    Your interpretation of the markets is stellar!

      Feb 19, 2015 19:44 AM

      Pretty hilarious when he said the banks were picking the pockets of gold bugs. I burst out laughing at that comment. Maybe some truth to it but by now its just small change as almost nobody is left to donate blood anymore.

    Feb 19, 2015 19:39 AM

    Matthew,

    Interesting chart. Those indicators almost look as if it’s about to go up. I think it’s a head fake and both gold and oil are about to take the plunge.

    There are a lot of unaware people out there saying nothing could take gold down. And that simply is not true. It could get real interest soon.

      Feb 19, 2015 19:00 AM

      Remember, there’s no currency in the oil-gold chart. If there’s a plunge on that chart, oil is falling vs gold.

      Do you see anything bearish on the weekly chart for gold, PHYS above, for instance? Or here:
      http://stockcharts.com/h-sc/ui?s=$GOLD&p=W&yr=3&mn=3&dy=22&id=p83075275279&a=388735420

        Feb 19, 2015 19:28 AM

        Matthew,

        The only thing that looks remotely bearish in that chart is the MACD.

        I use RSI, MACD, TRIX, and slow stochastic.

        If you draw the line from the bottom of 1130 candle to the bottom now, and also draw the line from the top of the 1130 candle to the last top. You will see a bearish expanding wedge. Ready for a possible break down.

    Feb 19, 2015 19:07 AM

    Let it be forgotten!… At least stop dumping PM and I’m already happy!

    Feb 19, 2015 19:49 AM

    There is some really weird ‘zero hedge’ type thinking on here – are you all turning into redneck, gun holding, right of the tea party republicans who believe everything that Putin tells you? Now, that IS weird! LOL!

    🙂

      LOOK UP the term redneck……and see where it originated…….
      If you are living in UK…you have no guns, wonder why the queen has all the gold..
      And forget the REPUBLICAN PARTY……..they are one PART OF THE TWO HEADED SNAKE
      Think out of the box, before they put you in the box…………………lol………..j

      Feb 19, 2015 19:13 AM
      Feb 19, 2015 19:01 PM

      I have to respectfully disagree re: “zero hedge” type of thinking.

    Feb 19, 2015 19:04 AM

    I Ditto that J Long……

    Feb 19, 2015 19:08 AM

    Since options expiry is coming up expect a gold to get murked soon. Since we’re at low 1200 it should go down to test bottoms again?! We’re going lower guys. 1080-1130

      Feb 19, 2015 19:27 AM

      Stewie you dont go down that far without a meaningful bounce. You might be waiting awhile.

        Feb 19, 2015 19:47 AM

        Agree. we just saw a 109 dollar decline. The bounce was in the cards and probably not over yet.

          Feb 19, 2015 19:05 PM

          You will not see significant bounce based on price again i’m seeing now along with 3 attacks this week by cartel. That should tell you lower prices are ahead not higher. But soon enough we’ll know.

            Feb 19, 2015 19:19 PM

            The longer term chart is still in decline, but over brief periods we will indeed see bounces from time to time. Yesterday and today are examples of that. We need to define our time periods to be clear what we are talking about. I do not think the final lows have yet been seen (but I think you agree with that sentiment).

    Feb 19, 2015 19:28 AM

    I concur with Gary. The operators painted the gold hammer in yesterday’s close to lure in the teck specs. Gunning price to 1222.9 in the overnight to rape the weak hedge short algos and carpet bombing price back down as the new longs puked…….laughing their asses off to the register.

    Feb 19, 2015 19:31 AM

    Matt what price do you come up with on gdxj with 1187 print

    thanks..

    Also something note worthy to everyone, most pops in gold have happened on fridays/tuesdays! Today could be a calm day of conformation of yesterdays low and fed release. Tomorrow or tonight we can have the pop in gold. Not saying it will happen but odds are favourable both ways lol.

    LPG what are your thoughts today?

      Feb 19, 2015 19:52 AM

      I would say 25 to 24.80, worst case.

    Feb 19, 2015 19:32 AM

    If were going lower i would like to see a close below 1198. Odds are they won’t make it easy.

    Feb 19, 2015 19:01 PM

    Oil looks like it’s about to fall apart
    Gold looks like it’s about to fall apart
    The dollar looks like it’s about to fall apart

    ( in my best Elmer Fudd ) sumtin kinda sqwewy goin on awound heyah..

    Looking black swan’ish

      Feb 19, 2015 19:58 PM

      OH YEAH………………something is VERY SQWEWY……….and WE KNOW WHAT IT IS…………………END GAME is NEAR……………..RIGHT BOYS !!!!!

      Feb 19, 2015 19:06 PM

      And what do you think those swans could be, Chartster?

        Feb 19, 2015 19:49 PM

        Oh…repatriation of gold and asset based currency. That type of thing.

          Feb 19, 2015 19:56 PM

          Maybe we see some news of Russia revaluing their currency and some interesting Germany and Greece news.
          Who knows how the spin doctors will spin what is going to happen.

            Feb 19, 2015 19:00 PM

            Again Chartster, I cannot disagree!

          Feb 19, 2015 19:59 PM

          Could not agree more!

    Feb 19, 2015 19:11 PM

    The Endgame is always near. Everybody always thinks that. It was like that in 1980 but then there was a 19 year bear market ingold and silver afterwards:
    http://1000gold.blogspot.co.uk/2015/02/essay-on-gold-comparing-current.html

    Feb 19, 2015 19:12 PM

    The resistance in gold is 1223/24 just like at the end of 2009.

      Feb 19, 2015 19:17 PM

      You may have to wait until 2017-2024 for a new gold bull market … or even later.

    Feb 19, 2015 19:59 PM

    I highly doubt that Dave. Maybe not to the moon now, but late this year early next should start the to the moon story.

    And the washout has to happen first anyway.
    Could be now….

    Feb 19, 2015 19:59 PM

    For some reason my comment to Al is “awaiting moderation.”
    ?

      Feb 19, 2015 19:07 PM

      Not sure why, I will check that out right now and change it. Sorry

      I TOLD YOU……you and franky are in moderation mode…………….he,he, just joking

        Feb 19, 2015 19:12 PM

        🙁 🙂

          Feb 19, 2015 19:02 PM

          Not a chance!

            Feb 19, 2015 19:58 PM

            Whew! 😮

            Feb 19, 2015 19:06 PM

            All is well in the world again : – )

      Feb 19, 2015 19:04 PM

      your in the dog house haha…

    Feb 19, 2015 19:49 PM

    Gold seems to always go down between 8am and noon! Day in day out…Manipulation!

    Feb 19, 2015 19:49 PM

    OFF TOPIC….but….

    Perth Mint & the Crime Commission sign an information deal.
    http://www.news.com.au/national/breaking-news/crime-agency-seeks-gold-documents/story-e6frfku9-1227231456081

    Feb 19, 2015 19:44 PM

    Here is something fun just for a change of pace. Al and the gang might really enjoy this.

    The worlds first website was launched 24 years ago on August 6th of 1991. Since then the internet has exploded in size and today there are more than 1.2 billion sites listed although it is believed only 25% of them are actually active. The other 75% are just parked names waiting to be activated or being held for sale to others.

    More than 43% of all websites were hosted in the US according to a 2013 report.

    Now here is the interesting part. This website at Kereport.com ranks as number 106,000 according to Alexa’s daily count meaning it is in the top percent of all websites in use today.

    Put another way, of the 516 million web sites in the US or from the 129 million that are actually in active use, this site comes out in the smallest fraction of the top 1% in terms of popularity and daily use.

    So pat yourselves on the back guys. That’s not bad at all. The most recent figures show 34,000 page views a day so I guess that tells us there is still a lot of interest in gold and resources in this country.

    You have got to wonder how the stats would look if the price of gold actually went up for a change!

      Ann
      Feb 20, 2015 20:43 AM

      Interesting , Thanks Birdman!!

        Feb 20, 2015 20:06 AM

        Cheers Ann! Good to see you are still here.

    Feb 20, 2015 20:06 AM

    Just by way of comparison though (and don’t be too annoyed Al if they beat you) but here are the US rankings of a few other popular sites many here like to browse each day:

    Kereport.com 106,030
    Kingworldnews.com 10,378
    Zerohedge.com 1,095
    321gold.com 40,375
    Rickackerman.com 193,263
    Usawatchdog.com 43,969
    Financialsense.com 52,215
    Financialsurvival.com 164,556
    Silverdoctors 22,736

    Get back to work Al (and Cory)…..all that golf and red wine is costing you valuable internet traffic!

    Feb 20, 2015 20:49 AM

    So much for the next step >1300’s some where going on about just a little while back.
    Thats some funny sh$t.

    Feb 20, 2015 20:31 AM

    WAKE UP PEOPLE. ALL GOLD IS FOOL’S GOLD.

    MORON THAT SUBJECT ………LATER……..

    bj
    Feb 20, 2015 20:59 AM

    I’m not sure we can use the word “market” wherever Goldman Sachs and GP Morgan have their tentacles–certainly no such thing as a “market” on Wall Street or the CME, much less London or European exchanges. It’s just trading algorithms on steroids (Fed speak and magic money)

    They are nothing more than washing machines or dirty money and a stage for virtual realities of every sort.