Volatility in gold and the US markets
Doc joins us today to clarify his stance on gold. He continues to think that in the short term gold is susceptible to a pullback but that stocks will hold their own for the most part. We also address the fact that gold is experiencing higher than normal price swings throughout the day and the volatility for the US markets as judged by the VIX is at a low for the year.
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They were very surprised when they saw the Wermacht coming up the Champs Elysees.
The reason the French highways are lined with poplar trees is that the German troops like to march in the shade.
Boom boom!
You beat me to it.
The French will wish they were back under the Germans when the moors take France.
Where is Charles Martel when they need him?
Doc, I sold 20% of my PVG yesterday@12.20. I bought it in March for 4.69, so I expect a correction. Sing out when you decide to buy back your PVG(we won’t regard it as investment advice).
I will. I know you sold your cde but I added to it today.
Thanks, Doc. Good luck with CDE. I think I’d rather buy OR, OCANF, PSLV, or TAHO.
Do you own SLW? It’s one of my big positions.
Bonzo, thanks for sharing your thoughts on the other stocks. I’ll look them up and see what I think of them technically. I do not own SLW—there’s some fundamental issues with them and I believe I can do better with some other names.
Doc, if SLW can win their tax case they are very undervalued compared to FNV or RGLD. I hope their accountants knew what they were doing.
Bonzo, I’ve owned OCANF for some time—it’s currently pulling back and I’m getting ready with the trigger to add a tad more. I’m doing that on all pullbacks on the stocks I own.
Thanks, Doc. I also hope to buy OCANF on the pullback. I think you might like TAHO more than CDE now that CDE has gone up so much this year. I got TAHO when they took over my Lake Shore Mines, and I hope to buy more if it pulls back. How low do you think silver might fall?
Doc – CDE is my bug bear.
I had a target of it pulling back to 7.50 a few months back and it never did. Ever since then, being inexperienced, I have been watching it go higher and higher expecting it to pull back.
This week and last has been painful watching it. Up and up. I had a look today and it was over 13 bucks and I can’t bring myself to look at it now.
When it was about 7 I had it as a possible 50 stock and had visions of myself making several hundred percent on it. At this rate I think I will be buying at 49 bucks just as it tops.
Bob, I think we see 20 over the next few weeks for CDE.
Bob, I also know how painful it is to get shaken out of a stock and then watch it soar. It’s happened to me on more occasions then I can remember. I feel your pain.
Thanks Doc – I appreciate your thoughts.
Gold price volatility will be confined to the average, as we’ve seen the high volatility event at the beginning of the year, and there was no repeat of this price rise volatility. Whether gold price declines are meant to indicate higher volatility on the downside, you would need some other indicator that contradicts multiple trend confirmations in the gold/silver ratio, and now in the TYX/PRII. What made the gold price in 2011 was the decline in the dollar, so without looking too far, you would have yo call the dollar trend in order to be correct on the gold price.
Interesting Fransix! I tend to agree, but have problems with the dollar index. It is so d*mn dependent on the Euro as to almost lose meaning.
I wish they would change to a new index, increasing China and Asian influence, while decreasing the Euro part, then we would have a decent measure to use.
I keep hearing commentators in the UK calling for increasing Euro strength going forward, but all my fundamentals say that is not very likely.
Europe is frecked – and needs the UK more than we need it. That truth is becoming more apparent now.
Jim Sinclair – The Most Important Article You Will Ever Read
Posted July 14th, 2016 at 9:46 AM (CST) by Jim Sinclair & filed under General Editorial.
Dear CIGAs,
This is not an easy read, but it is the most IMPORTANT read of your lifetime.
I have asked Editor Dan to post Stockman’s article in total today on JSMineset because here is where we are now and where we are going in the future in a much larger way than anything before.
I have been looking for the reason for the Fed’s Chair visit at the White House recently. What this will do is bury the fiat currency system in terms of buying power. It is already dead as a storehouse of wealth. The carrot on the string to own money, interest rates, are presently history. This is what the present administration and its economic clone democratic candidate are counting on. This is the substance that the meeting between the Federal Reserve and the White House was all about. This has just been made public down under by a Fed female personality where it is least apt to be publicly discussed. It is simple money printing hidden in complexity so you have to change your understanding of the expanded QE theory. If you will not first read this then make the effort, you are lost. Please make that effort.
Unless we get rid of the Fed we the 99% are all dead financially and literally.
http://www.jsmineset.com/2016/07/14/the-most-important-article-you-will-ever-read/
Throw a nuclear exchange in there. That’s sure to
come. Excellent article.
The Elite are and getting ready to take us to war.
People refuse to believe it but this place is doomed.
Sinclair, is so precisely accurate. Many more reasons
than he points too. Still, we are all going up in flames.
If that scares people, then they are ignorant and brain
washed as a dead corpse.
In fact, the population is totally unware. Hell on earth is
coming and is here.
I often agree with Mr. Stockman. Obviously one cannot solve an excessive debt problem by increasing debt. The consequential burden on unborn generations is obvious.
Most of the academics running the Fed, absolute believers in Keynesian theory are very poor observers of that theory’s multiple failures in other countries, in other times.
I am not sure Mr. Stockman is totally correct this time in predicting pure monetization; direct purchase of debt.
That would simply be removing one veil from the obfuscation for which the Fed was designed to generate.
My gut tells me, they are going to try something different this time. Still QE, of course, but somehow more economically stimulating, and with better disguise.
It’s all going to fail, that’s why they are taking us to war.
It will be the last war too.
Doc,
What do you think of THM stock? – international tower hill mines
It has a similar profile to Exeter but exeter is much better run company. stock made noticeable moves and lot of speculative volume I think Just want to know what you think. Thanks!
Cali, THANK YOU VERY MUCH for mentioning this company and stock. I don’t know the fundamentals on this company but will look them up. All I know is I LOVE THE TECHNICALS —-I’m impressed with the daily, weekly, and monthly charts at this point in time. I’ll take a position on this stock just based on the technicals—–not investment advice.
Thanks Doc and you’re welcome!
You don’t think its in overbought territory right now?
It looks like it could pull back here for awhile. If the monthly MACD looks like this at the end of July, I would look with great interest at it.
Cali, I just checked with my financial analysis guru about the fundamentals and he is not impressed—as he puts it: Low grade, million ounces. Super low grade and the project needs at least $1800/OZ for gold to generate a positive IRR. Interestingly, the technicals look good at this particular point in time.
Doc, Fundamentals not very impressive but with rising gold tide, its a good speculative play IMO and perhaps a good trading vehicle, thanks for checking the technicals. I may wait a bit before taking a plunge.
Cali, I’ll probably purchase as well just based on the technicals and a speculative play.
Thx Doc
I weighed in a couple dayz ago….. Nobody cared lol
I said I would not sell the pm stocks. With the decent sell off in gold my stocks a are up.
My GSC is up 17% at the moment…
Bill, congrats; even though I feel we could have some consolidation of the bullion for awhile, I’m now invested for the long term overall.
Mining shares are on their way to being Crispy Critters.
For the long term, all paper assets are toxic.
You’ve nailed Doc.
My guts were backing up my brain.
I knew this market would surprise..even me..lol
I agree…bullion doesn’t have to knock it out for shares to do very well. In the prior bull they were held back as we had more inflation and ever increasing oil prices…
Cost of operating a mine was always going up up and away..
After such a beating I feel CEOs are wiser with their spending. Its easier to get workers with less demand on wages. You can actually get a tire for a mining truck if needed!
The stupidity seems to have dissipated
I wish this was the summer of 1969 and I could grab my backpack and hitchhike down to Woodstock New York for the greatest music festival of all times. Jimi Hendrix, Joe Cocker, Grace Slick, Country Joe and the Fish, and Wavy Gravy amongst others. Nice!
Just wait, we have to have a repeat of the Summer of Unrest of 1968 first, then we can have another great repeat of Woodstock.
CFS, you abide in Indiana, what is your impression of Governor Pence, just curious? DT
Calgary is not overbuilt it is under demolished. Just wait for one more year when the hard times really begin to bight, I know I’ve been there.
http://business.financialpost.com/news/property-post/landlords-scramble-to-fill-near-empty-skyscrapers-dotting-calgary-skyline-were-not-overbuilt-were-under-demolished?__lsa=a85a-0b95
Good. Not great, but in politics there is always compromise.
A state governor is not a dictator, so much of the economy is governed by the legislature.
Pence has caused manufacturing not to leave the state totally, and even caused some to move out of Illinois into Indiana. Indiana has a migrant problem, inflicted on it by an Islamic Marxist dictator, but were it not for the weather it would be one of the better states in the US to live in.
Cost of living and state taxes are half that of California.
I loved my years at I.U. in Bloomington, but could not take the winters and came home to glorious Texas, home of the brave and the free.
Podcast from Chris Vermeulen. Very different attitudes about the conventionals rising than Gary Savage for FWIW. http://talkdigitalnetwork.com/2016/07/high-stock-market-numbers-deceiving/
Anyone know what happened to GSS ?
Takeout offer?
GSS up 19% in very heavy volume, but no news.
Results not due out until 7/27
Yes. GSS or GSC.TO
Volume over 4 times usual.
COFF TOPIC, but!
http://www.zerohedge.com/news/2016-07-13/french-intel-chief-warns-migrant-sex-attacks-push-nation-brink-civil-war
The French were always a bit slow to realize reality…