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Doc’s outlook on the precious metals

August 14, 2015

Doc and I focus on gold but also consider what is happening in oil, the US dollar, and the conventional markets. We are still waiting for a defined direction from many of these markets.

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Discussion
13 Comments
    CFS
    Aug 14, 2015 14:07 PM

    I believe we are at a point in history when one should be moving towards a negative market holding position.
    What I mean by that is that one should balance those stocks one might be expected to go up, with a larger number of shorted stocks which might be expected to go down.
    i.e. A negative hedge state by the end of this year.
    The danger in this state is, of course, buying by central banks to prop up the market.
    But I believe central banks will fail in the long run to keep markets forever propped up.
    Obvious shorts would be in the fracked oil area, both companies that are overleveraged and losing money and also bonds issued to those companies which will be defaulted on.

    Plus a lot of cash/physical things in hand, not banks, for the period of deflation.

    Aug 14, 2015 14:28 PM

    Doc:
    Thanks for your comments today. Question: Isn’t it in China’s interest to see a strong dollar? They hold lots of our debt and in their gold purchases, it allows them to trade a high value asset for a lower value one. Another plus: they get to watch the Fed squirm, which they must enjoy immensely.

      Aug 14, 2015 14:00 PM

      Keep one thing in mind, Silverdollar, and that is that Japan holds almost as much of our debt as does China.

        Aug 14, 2015 14:29 PM

        Right, but Japan is supposed to be a friend and China the opposite. Haven’t read anything about Japan being in love with gold. In fact, they are having a few problems with their own relationship. I suppose it would also be in Japan’s interest to see a higher dollar so as to cheapen the Yen. Oh, what a mixed up world we inhabit.

          Aug 14, 2015 14:50 PM

          The Japanese keep all their gold in their electronics – smartphones, PCs, etc, etc.

          🙂

          Aug 14, 2015 14:35 PM

          Silverdollar – Good thoughts today on China & Japan.

          Doc & Cory – Good interview recapping the Dollar, Gold, Oil, and general markets.

      Aug 14, 2015 14:18 PM

      The value is in the gold atoms not the numbers called dollars or Yuan. Since numbers have no value it stands to reason that some big numbers ought to be required to buy gold or silver atoms.

    Aug 14, 2015 14:28 PM

    Tell me what is the REAL purpose of the World Gold Council ???

    “As Global Gold Demand Soars, the World Gold Council Reports a 12% Decline in Global Gold Demand in the Second Quarter of 2015.

    Official Government Gold Import and Independent Sales Data Seemingly Contradict the World Gold Council Report.”

    https://smaulgld.com/global-gold-demand-soars-world-gold-council-says-otherwise/

      Aug 15, 2015 15:48 AM

      The price says that global gold demand is subdued. Otherwise the physical demand would have put a floor under the price that cannot be broken at $1300, 1200 or 1100 but it did not.

    Aug 14, 2015 14:49 PM

    Intrexon is such a speculative stock right now – driven up way beyond where it should be.

    I would love it to seriously come back down to March levels in a general market crash but I just can’t see it happening. Every time it has any correction it soon shoots back up.

    40 bucs to 60 bucks was just plain nuts in such a short timeframe but it would not surprise me if it went back to 60, oh, next week. It is a crazy stock.

    Aug 14, 2015 14:38 PM

    The move in the Chinese Yuan is not much in % terms at about -3.5% – but is it a change in the longer term trend / direction from up to down? Is that significant? Or course, it could be a one off adjustment but new trends can start with “one’off adjustments” can’t they?

    Aug 14, 2015 14:31 PM

    Doc.
    how would you view the conventional markets of china according to your charts?
    could you mention for us as well? thank you.

    Aug 14, 2015 14:44 PM

    Doc.
    also, almost never mention on Japanese market: how would you see the near future? thanks.