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What is the outlook for the conventional markets and gold moving through this week?

May 18, 2015

Rick joins us to chat about the move in gold stocks recently. GDX and GDXJ have been moving up and looking stronger. Could this continue for the rest of summer?

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Discussion
11 Comments
    May 18, 2015 18:13 AM

    Hi Al, I listen to your show everyday and trust your opinions. Since you and Rick were discussing gold stocks today, I wanted to get your advice. I’m looking to put 50K into gold stocks. Can you guys recommend some good companies to choose from?

      May 18, 2015 18:41 AM

      Ha Ha Ha!….funny guy Mark….I smell a lawsuit in the making.

        May 18, 2015 18:05 PM

        Bird

        That’s the first thing that popped into my head when I read his statement, but it was more along a single word: “Ouch.”

          May 19, 2015 19:27 AM

          I wonder if Doc fancies getting away from his seemingly pleasant life as a retired doctor and private investor and fancies taking on being a hedge fund manager?

          I guess probably not!

      May 18, 2015 18:51 PM

      Very sorry Mark, we are not in the recommendation business.

    May 18, 2015 18:22 AM

    I sure hope no idiot decides to harp on Ricks $800 call for gold just a few weeks ago. As he states as a trader one trades off what is unfolding as gold heads higher focus on resistance levels falling as it falls look towards support zones to hold.

    GDXJ weekly shows resistance at Dec lows $28.60+ then the $34-$36 level before any real bullish move attacks the key $44-$46 area, that would really be a bullish outcome!

      May 18, 2015 18:17 PM

      Good thoughts Original JJ.

      We may get a little snapback in GDXJ and then head higher towards the recent $30.10 peak. While it would expect GDXJ to retreat near $30, if it makes a second attempt and breaks through then $34.46-$35 is next support. I can’t see it getting much above that though before correcting down harder.

    May 18, 2015 18:30 AM

    Gold prices are benefitting from low interest rates and more inflation in the system than is acknowledged. But a dollar rally is simply not in the cards.

    In fact Stephen Poloz’s recent jawboning on targeting inflation, and at the same time lowering interest rates is exactly what the Fed is doing, btw, and indicative of a central banker desirous of a below-par currency stability. But the irony may be after the oil price collapse that the $U.S. may trade below par with the $CAD, which Poloz wants to avoid.

    May 18, 2015 18:04 PM

    Yo Birdman and Mark Alan, what’s your damage? What are you talking about ”ouch” and ”lawsuits” for? It’s a serious inquiry. I’d like some help/advice. Instead of being @&%*#s, why not help me out? What’s wrong with my first email?

      May 20, 2015 20:13 AM

      Sure Mark, be glad to tell you.

      You used the word “advice” and a dollar amount in the same sentence, on a website that is not a representative of a Financial Advisory service. Big Al’s site, as you may know (or may not), is NOT a Registered Investment Adviser, nor is he or anyone of his daily commentators a Registered Investment Adviser.

      If you have been a listener nearly every day, you should have been reading the comments because that is where most of the information is revealed as to “who” is an investor/trader and “what specific stocks” they are buying and/or trading. Of course this is ALL BASED on each poster’s opinion, whether it be actual research, or just plain “I like the company”.

      The difference between a financial adviser (FA) and someone giving out educational information, is that the FA has a legal license to steal your money for making a recommendation and giving advice. Then if you go broke listening to them, you’ll find it difficult to sue them because they followed the rules. Big Al and some others can’t do that, because any “advice” they give, they can be sued for giving “financial advice” without a license.

      I suggest changing the phraseology of your questions, so that there aren’t legal implications. Just my opinion. But hey! Why listen to anything I say? 🙂

    May 19, 2015 19:44 AM

    Gold has done better with the US dollar strong than when the US dollar has been weak lately.
    Gold did well in Euros and Yen for all of 2014 and also in British Pounds since the start of November 2014, breaking above a number of minor highs from 2014 at the end of 2014 and/or the the start of 2015.
    Gold peaked in most of these currencies in January 2015 and has been in a downtrend ever since (in EUR, JPY, GBP and USD). The dollar downmove has been since abut March and gold has not turned back up in anything until the end of last week.
    Now as Rick says there a mini impulsive move above some very minor recent highs in gold priced in USD (also true for JPY) but not so in gold in Euros or Sterling. So it is itty bitty stuff. Gold is below 800 Sterling at arounf 780 GBP and that is not far off the lows really. Wen I look at the recent upmove in gold in dollar terms on the Kitco home page, I still see lots of red in gold versus other currencies. So it is merely gold moving up in the weakest currency ‘du jour’ whatever that is on any particular day or weak while it is not performing against the rest.
    There is nothing bullish about that scenario except perhaps if you are a very long term investor wanting an entry point at what might be a low price in your particular local currency.