Weekend Show Preview – How China can drive commodity prices higher
This is a special preview of the KE Report Weekend Show. President of The Commodity of Monetary Research and Education (CMRE) and founder of Myrmikan Capital based in New York, Dan Oliver kicks off this week’s Weekend Show. Dan discusses how China can drive commodity prices, especially gold prices higher in the near future. We also ask Dan about the funds in New York that are taking positions in gold stocks and how these funds react after seeing certain percentage gains.
Dan always offers an intense, well thought out perspective with a positive slant to metals.
Dan says that the marginal new buyer of gold is the big funds as they enter the market. But that’s pretty unlikely. If those funds have missed the ride so far the odds they enter late and chase price is about zero. They are not the unsophisticated buyer in this story. So as far as I can see the only thing that can push gold further now is the speculative and retail investor but the charts tell us they have run out of steam. That group has been unable to punch through 1306 so far and miners are seriously overbought. If the funds do enter it will only be after a correction has taken place and even then they will be cautious to see the decline has hit bottom..
Bird,
this is not gospel by any stretch, but here is an article by Adam Hamilton explaining why the overbought signals now are not necessarily a bad thing and that we are coming from the most oversold levels in decades.
http://www.321gold.com/editorials/hamilton/hamilton050616.html
“The communist party values above all else social stability”? What? The party of REVOLUTION? Like the commies in America under the banner of equality want to allow grown men to shower with little girls?