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Chris does not like the looks of this gold market

July 20, 2015

With the break below the $1,125 level for gold in early morning trading and the price continuing to hold just above $1,100 Chris says the gold market has changed. There is no doubt that the gold market is struggling right now. We will have another opinion with Jay Taylor coming up in around 3 hours.

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Discussion
74 Comments
    Jul 20, 2015 20:02 PM

    There is “too much paper gold and silver” in the market, and the “powers to be”
    are out to destroy the notion that these metals are of any value….it is a war over
    paper verses precious metals. Appears gold is going to 850-925 and silver to 8-9.
    I believe the fed and other banks are joined together in this war. No matter how
    much demand there is for silver, the perception is being made that it is a bad
    value! It may be a long, long haul for precious metals….unless, the economy fails, the market crashes, etc. I tend to truly believe that both of the latter will take place this fall.

    ‘simply said’
    wyn

    Jul 20, 2015 20:11 PM

    just broke $1100.
    Chris sounds pretty logical.
    Not too many people are interested in gold, a niche market I guess.

    Jul 20, 2015 20:17 PM

    I think there is a chance that the last 45 minutes of today’s pm market might qualify as a fairly good washout. The HUI index couldn’t keep up and their were no efforts showing that anybody was buying for a quick turnaround.
    I tasted early, NUGT. Ugh, burned my tongue!

      Jul 20, 2015 20:31 PM

      As I look at MACD and volumes though, I probably made a foolish statement. Did anyone else notice Golden Star (GSS)? It went green today for 17+%. Go figure.

    LPG
    Jul 20, 2015 20:18 PM

    Re: China and the data released last week, I’ll thrown another 2 cts at it.

    Personally, I’ve written about it on Friday (or Saturday, can’t recall): I don’t trust this data. Said otherwise, I don’t believe it.
    But let’s say I am WRONG and the data is accurate (ie reflects reality).

    In that case, the data is BAD news short-term, BUT is very bullish long-term: very bullish long-term coz it means China still has hundreds of tons of gold still to buy (I assume they still want to buy plenty more), FWIW.

    My 2cts.

    LPG

      Jul 20, 2015 20:28 PM

      LPG,I think China has more gold than they say, but they are part of the “rigging”, they don’t want to crash the American dollar or the system, that would be war.

      Their bond market is far from large enough to support a dominant world currency anyway, so why rock the boat?

        Jul 20, 2015 20:34 PM

        After 4 years of dropping Chris doesn’t like the look of the gold market? Wow what relevation. When companies with no cash flow sponsor radio shows and spend more on ir than drilling, of course the gold market is going to tank.

        When Al has no sponsors left and Sprott is firing brokers then it may be time to get back in.

        Personally I don’t Olay rigged games. I’m not suicidal like gold bugs.

          LPG
          Jul 20, 2015 20:26 PM

          A.d.a,

          I wish we could have people such as yourself on the show sometimes.
          I’d really be keen to hear your detailed thoughts/views on the sector.
          I’m serious here, not sarcastic.

          Best to you,

          LPG

        LPG
        Jul 20, 2015 20:43 PM

        heathen,

        Concur with you: that’s pretty obvious to me.
        I just made the points above coz since Friday, some people said: China having declared it owns 1600 MT something of gold is basically “a disappointment”.

        For me, this figure is either irrelevant OR bullish long-term. This is the point I wanted to make.

        Best to you, and GL to all investing/trading.

        LPG
        “When going through hell, keep going”

          Jul 20, 2015 20:35 PM

          LPG……Watch out tomorrow….I am going to announce to the world that i only have 1 1/2 ounces of silver………Silver will drop to $10 dollars an ounce….Or i will announce to the world i have 9,000 tons…& still the price will drop to $10.

            LPG
            Jul 20, 2015 20:37 PM

            Irishtony, you’re always in fine form !
            ๐Ÿ™‚
            Best to you,
            LPG

    Jul 20, 2015 20:21 PM

    BAH! I sold my JDST a few weeks ago at $10.85 for 16% profit. Hit $16.91 today! I could have made $800 instead of $273! ๐Ÿ™

    I am watching RUSL and NUGT this week to get back in.

      Jul 20, 2015 20:37 PM

      Jason…..You made a profit……………SMILE.

    Jul 20, 2015 20:32 PM

    Spot gold now approx C$1,427
    1oz gold maple at BorderGold C$1,487 + shipping
    -approx 4.5% premium

    These are the prices that have meaning for me.

      Jul 20, 2015 20:34 PM

      ditto

      Jul 20, 2015 20:39 PM

      I bought 2000 shares at HGD.to at $6, it just hit $18.50. That number means something to me.

      The above comment shows how stupid gold bugs are. Its like saying milk is selling at Wal-Mart for $1.50 and at Safeway for $3.50 so milk is worth $3.50.

      You deserve to lose your money. I bet you rode silver from $12 to $50 and back like AL did.

        Jul 20, 2015 20:52 PM

        IF you were that sharp…….you would be in at $1-4 per oz.

        Jul 20, 2015 20:03 PM

        Hey retard ADD again.
        I didn’t lose my money – I still have ounces.
        -go suck something

          Jul 20, 2015 20:37 PM

          i don’t think that A.d.a. knows what C$ means.

    Jul 20, 2015 20:38 PM

    I am OK in CDN$ right now.
    I don’t know why my EW count is not the same in CDN$ and in US$ …
    Should ask AVI !

    LPG
    Jul 20, 2015 20:38 PM

    I’ll have to disagree w. something Chris said.
    He mentioned @ 6’15sec: (sic)
    “if we go to $1000 on the gold price, you’re gonna lose another 25% to 50% even from present levels on gold stocks coz it will really be capitulation”.

    I don’t think all names will lose 50% from here. Maybe bad quality names will, but certainly not “quality” names.
    The sector had somehow been trading lower ahead of the move of the past 2 trading sessions (Friday and Monday).

    And now, as often when big moves occur, people look lower and lower… that’s “normal”.

    Personally, I don’t think we’ll see 50% lower levels on some quality names. Or even 30 to 40% lower levels from here. I don’t think so, but I HOPE, I HOPE I HOPE that Chris is right, that I am wrong, and that we will see those levels coz the lower the better for the following 12mths.

    We are, IMHO, in the last innings of this gold market bear move from 2011, which I consider as cyclical in nature, and not secular.
    I am very confident that this move down on gold and on the stocks has many many many smart money manager’s attention by now.
    And a move closer to $1000, which I WELCOME, will bring money to the sector.

    To be frank, Chris’ interview got me a bit puzzled. Maybe I didn’t “interpret” it properly, but Chris sounded pessimistic to me. Personally, I am quite encouraged by finally seeing those low levels coz lower levels gives me more comfort when deploying my capital.

    I do think we’ll go lower on the sector, but again, I’ll be HAPPY with being able to have orders filled at 25% from here (which is about 35% lower from Friday’s close). And I don’t see the quality names losing 30,40, 50% from here. But if they do, to repeat myself, I’ll be happy – capital is ready, almost all orders are in place.

    My 2cts.

    LPG

    Jul 20, 2015 20:47 PM

    Did they just knock gold down again?

    Jul 20, 2015 20:54 PM

    LET THEM TAKE THE PRICE OF GOLD DOWN TO ZERO…………………this all stops in OCTOBER…………..so let them have all the fun they want for now!

    CFS
    Jul 20, 2015 20:55 PM

    I disagree with mr. Temple. It is exactly the same market we have had for years.
    What’s changed? Physical metal is running out. Recognizing we are near an end game, the manipulators are going to maximize their profiting on naked shorts before they cashout and settle for cash.
    We will bottom soon… Days, weeks, months, I don’t know, it won’t be years and probably won’t be months.
    The real question is what do we have on the other side of the bottom? Will it be a slow crawl out of the hole?
    Will there be lots of bargain-hunters? Or will there be a global collapse of debt, taking everything down?
    I am buying precious metals, but physical is NOT really coming down that much. Margins are rising.

      Jul 20, 2015 20:00 PM

      great insight as usual……….professor……………

    Jul 20, 2015 20:05 PM

    On a positive note for the bulls, the gold-silver ratio was unable to make a new high and even dropped about 2% today. It is unusual for silver to outperform gold when gold plunges several percent and fear is high. I would buy silver here before gold but both are oversold vs the dollar.
    http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24SILVER&p=D&yr=0&mn=11&dy=0&id=p81150520912

      CFS
      Jul 20, 2015 20:10 PM

      Good luck. I have been trying to buy 100,000 ozs at $15.50 for over a week, but refuse to leave my money with a bullion dealer for over two weeks, it’s too dangerous.
      I am repeatedly told I’ll have to wait till Sept.

        Jul 20, 2015 20:19 PM

        Luckily my focus is mostly on the miners but I bet GoldMoney can handle your order.

      Jul 20, 2015 20:12 PM

      good observation on the ratio……….and silver…….I thought silver held up well today also……………….

    CFS
    Jul 20, 2015 20:06 PM

    Off topic:

    report released Monday:

    โ€” Had the United States not allowed so many new illegal immigrants to settle in the country since 2009, the total number of illegal immigrants would have fallen by 2.5 million. But the arrival of so many new illegal immigrants offset this attrition in the illegal population. See DrudgeReport.com

    50% of all new driving licenses issued in California are going to illegals.

    Time to impeach the bastard! He is destroying the country.

    CFS
    Jul 20, 2015 20:17 PM

    It is never too late.

    Deport the bastard!

      Jul 20, 2015 20:26 PM

      I was referring to impeachment………sorry I should have specified……..

      Jul 20, 2015 20:46 PM

      I can not understand why with so many millions of Americans , with tens of millions of guns have a problem with thorns in there sides, have a problem with obama , the bushes , & the clintons………cant anyone fire a gun ?

        Jul 20, 2015 20:22 PM

        Irish..good question….I would also like to hear the answers….

      Jul 20, 2015 20:15 PM

      One of the better minds on the net………CAF…….

        Jul 20, 2015 20:10 PM

        Are she and Greg married? Holy crow, I could not stop laughing. Good interview. Catherine should have been the host and Greg the interview though. Got to hand it to him, not many guys are so willing to challenge what the interviewee is saying. But she handled herself well.

      Jul 20, 2015 20:20 PM

      Interesting is an understatement. Never seen Greg Hunter so upset with a guest.

    Jul 20, 2015 20:20 PM

    I’m like a child in a candy store, and they have slashed the price of my favourite sweets (candies) by 10% or more in some cases.
    Thanks whoever you are out there, for helping me buy these gold &silver stocks for a great discount xxxxx. Love u.

    Jul 20, 2015 20:25 PM

    Everyone has heard of a “blowoff top” and I think the miners are finally putting in a blowoff bottom (for lack of better terms ๐Ÿ˜‰ ).
    Take a look at the distance GDX would have to rise just to get back to the 20 day moving average. We also have blowoff volume and an extreme RSI reading.
    http://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=0&mn=11&dy=0&id=p33195236096&a=416880586

      Jul 20, 2015 20:29 PM

      I hope you are right Matthew. Just made my first ever purchase of mining shares (GDX) right before the close. I took a look at the technicals before doing so and liked what I saw.

        Jul 20, 2015 20:25 PM

        Aside from (possibly) the very short term, I don’t see how you can go wrong with that purchase. When the action goes vertical, up or down, there’s no telling precisely where the turn will come but you got a great deal in my opinion, regardless.

    Jul 20, 2015 20:41 PM

    Hi Chris,

    I thought I remember you mentioning EXXI in the past. It has since fallen a lot since then. I am interested in its preferred shares as oil falls even further. What are your thoughts on EXXI now?

    Thanks!

      Jul 21, 2015 21:37 AM

      We got stopped out of it some time ago, so I have not paid as much attention to it. Can’t offer a good enough opinion right now.

        Jul 21, 2015 21:52 AM

        Thanks for the reply!

      GH
      Jul 20, 2015 20:57 PM

      Excellent charts, as always!!

      LPG
      Jul 20, 2015 20:03 PM

      Where are the usual forks ??????????
      ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰
      Thanks Matthew, as always.
      Best to you,
      LPG

        Jul 20, 2015 20:15 PM

        + 1 LPG

        Jul 20, 2015 20:27 PM

        I only break out the forks for “special” company. ๐Ÿ˜ฎ
        For now, we’ll just have to use our hands. Sorry. ๐Ÿ˜

          LPG
          Jul 20, 2015 20:46 PM

          lol Matthew ! Nice one !

      Jul 20, 2015 20:34 PM

      I must be getting tired or something but I don’t know what I am looking at on your chart Matthew. Why are the dollar figures so low on the side bar? Why is the chart rising in price when GDX and GDXJ are both falling?

        Jul 20, 2015 20:10 PM

        The chart shows GDXJ priced in GDX rather than U.S. dollars. It is rising because GDXJ has been outperforming GDX since March. This is seen as bullish because risk is outperforming relative safety. Similarly, it is bullish that risky silver is outperforming gold and has not made a new low. Gold fell almost 2% vs silver today.

          Jul 20, 2015 20:51 PM

          GDXJ priced in GDX….ok, now I get it. Many thanks. My head was really spinning today from all the dozens and dozens of charts I reviewed. What a day!

          Jul 21, 2015 21:52 AM

          great info……Matthew-Professor…….thanks

            Jul 21, 2015 21:53 AM

            I still think you need to have a spot on the show………..

    Jul 20, 2015 20:49 PM

    Just go out & buy the bloody silver stuff.

      Jul 20, 2015 20:16 PM

      GREAT to hear from you Irish!! LUV it!!!

    Jul 20, 2015 20:47 PM

    ***************** NOTHING ON THE COMEX MATTERS AT THIS POINT *****************
    This system is finish, and they know it! Time is ticking away!

    Jul 20, 2015 20:48 PM

    Chris, to be honest with you, I never understood your prior level of bullishness where metals were concerned. Now you are suddenly out and minimizing holdings but it just seems like a contrarian signal that the capitulation stage has finally arrived when you reverse yourself after such a long time being in the bull camp.

      Jul 20, 2015 20:16 PM

      YEP!

      Jul 21, 2015 21:42 AM

      As far as “suddenly” out and minimizing holdings, I told my subscribers to begin cutting back aggressively in early 2011 from what had been, at that time, substantial positions. In that context my prior level of bullishness (recent past, I assume you mean) has most always been described as longer-term, which I still have. What has changed now IMO is the technical tenor of the market. Taking out the old low opens the door for further losses; thus, my advocating that remaining, small portfolio exposure to the gold space be made smaller still until there is a more reliable turn.
      Keep in mind too that for many, many months on this forum I have incessantly urged people to look at other sectors/stocks.

    Jul 21, 2015 21:16 AM

    Hate to say it Chris but it’s a bit late to declare the gold market looks bad. I was warning to run from gold months ago and a year ago and before that. While you get these big cheeses like Sprott Casey an then the nobodies that think their somebody like Moriarty screaming it’s a bull market. Saw my neighbour yesterday and he’s ready to beat people as for the fearmongering and misinformation. I’ll go with. He’s lost most his retirement. Gold bugs are I’m afraid…..absolutely idiots.