Doc’s Comments On The Silver:Gold Ratio and What Will Drive Metals
Doc and I chat today with a focus on the metals sector. We first address the posting form yesterday on the silver:gold ratio. We then move on to what will help the metals and the possibility of these scenarios materializing.
Click download link to listen on this device: Download Show
Daily comments on monthly charts seems more like propaganda than an effort to share useful information.
DRAMA at Sprott!
“Marc Faber Resigns After Saying ‘Thank God White People Populated America”
Sprott CEO: ““We pride ourselves on being a diverse organization and comments of this sort will not be tolerated. We are committed to providing an inclusive workplace for all of our employees and we extend the same respect to our clients and investors.”
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Yes, Sprott is “diverse” and “inclusive” — until you say something controversial.
The hysteria is just dumb.
Invite Marc Faber on the weekend show!
And let’s not forget that the African tribal heads were more than happy to sell their own slaves to white, black and Arab slave dealers.),” Faber wrote in the newsletter.
Maybe Marc could get a job with Maxine Waters office dusting the furniture……. 🙂
True tho.
Not time for that kinda truth I guess.
He coulda mentioned the Barbary coast as well, alot of people taken as slaves from europe by black and brown people.
2016 was nothing but a blip in the ongoing commodity bear. It literally rallied for 6 months after 5 years of getting absolutely smashed to 40 or 50 year lows. It has now basically given back all of those gains after a year and a half. To me it is poised for another leg down. It needed some time for the long term moving averages to catch up to price, which they have now done.
http://stockcharts.com/h-sc/ui?s=GCC&p=W&yr=5&mn=0&dy=0&id=p24404916056&a=551064080&listNum=1
Best case, it will go sideways to slightly down as the 200 WMA continues to drop. Then maybe a suckers rally back to the 200 WMA, and then another 4 -5 years of basing action.
Does that mean the world doesn’t need commodities anymore? Man, this new society is really something!
I have always been an advocate of recycling the shit we built, threw out, sank and blew up in the 20th century but these transitions take time.
No, it means if you want to leverage yourself to the hilt, make sure you are a TBTF bank, because anyone else is on their own once price drops through the floor. For commodity producers, perversely, as price drops, they have to produce ever more of the commodity in order to meet their debt covenants. So supply actually goes up as price drops. Not only that, having been burned before, they hedge future production at cut rate prices. Any uptick in price has the producers selling future supply. The banksters are happy to sell them those contracts. The Fed is squeezing the life out of producers. Sure, some day the game will end, but you could be dead and buried by then
Anything is possible, but I find that highly improbable.
The initially rally up with Gold in 2016 was more than a blip, and took out a series of prior peaks/troughs and key moving averages that hadn’t taken out in then years of the bear market. To consider that a blip or suckers rally is ridiculous. Suckers rallies or blips don’t take out 3-5 layers of resistance levels, they fail at first resistance and then break to new lows.
The last time I checked Gold hadn’t broken down below its December 2015 low of $1045.40 after almost 2 full years.
If a bear market ends for 2 years and can’t break to new lows, but conversely breaks out above several layers of prior peaks and troughs and blasting through key moving averages then that is the initial impulse leg of a new bull market.
If Gold did make a lower low, below it’s Dec 2015 low of $1045.40 over the last 2 years then please let me know, because I don’t see it when I look at this chart:
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=5&mn=0&dy=0&id=p00060661680
Simply put, the only possible way Gold is still in a Bear Market is if it makes a lower low. Period.
If Gold breaks below $1045.40 or gets anywhere close to that, THEN, and only then could it still be in a bear market, using any technical analysis system on the planet.
It has been 2 years since the last low, so that is why I said anything is possible, but it is improbable. It already would have blasted down lower in 2016, and now we are almost done with 2017 and it hasn’t even gotten close to $1045.40.
Keep in mind that the converse is also true. If Gold takes out the high from last year of $1377.50, then it will have made a higher high, proving definitively that Gold is continuing the new bull market, that we are still in until proven otherwise. Period.
We are over twice as close to the price where Gold will break $1377 than we are of Gold breaking $1045. Make sense?
From a technical perspective, every day that goes by where Gold doesn’t break $1045.40 makes it less and less likely Gold is still in the Bear market that formed from 2011 down to December 2015.
One could make the case that everything that happened from December 2015 through present is part of a large counter-trend rally, and that is may reverse back down and still break through $1045.40. If that happened then we’d be in the mother of all bear markets, or some would consider them 2 separate bear markets.
If that happens, then my investing thesis will be wrong, and I’ll tip my hat to you spanky.
However, if Gold does break above $1377.50, then it will have made a higher high, and it will confirm the Bull market thesis. I hope you’ll tip you hat to the bulls if that is what plays out.
It really comes down to $1045.40 or $1377.50. Which comes next?
Those are the 2 lines in the sand that if crossed are either a lower low or a higher high.
Thanks for stepping up, Excelsior.
It’s unfair, Spanky. You shovel out half-baked analyses and conclusions daily, that you don’t even believe–mere venting to let off the pressure–and in order to restore balance to the universe someone has to make a laborious reply.
On the other hand, your commentary does make good satire. Put it in a comic strip and it will be Dilbert for the markets.
Thanks GH and agreed.
Hi Cory, this would be a good week to interview Marc Faber on the weekend show. Very timely.
Ditto……….good suggestion…………..
Cory said he would look into Faber yesterday, hope he gets him.
Outside week down in silver. At a minimum there will be follow through to the downside. There is a massive H&S on the monthly chart. If it breaks down from here, kiss it bye bye.
Commodities are headed sideways to down for years. They could base out for another 20 years in a range.
I agree spanky, 1980 to 2011 was 30 years.
Could happen again.
Dent could be right.
The miners are tied at the hip to the trashiest currency in the DXY. And it’s set to get even trashier beginning now.
http://stockcharts.com/h-sc/ui?s=%24XJY&p=D&yr=1&mn=0&dy=0&id=p59850269096&a=551071000&listNum=1
Miner’s are actually set to “catch down” to the POS yen.
http://stockcharts.com/h-sc/ui?s=%24XJY&p=D&yr=1&mn=0&dy=0&id=p16551345942&a=551071404&listNum=1
CEO Roundtable with David Lenigas from Artemis Resources (ARV.AX) ARTTF
October 18, 2017
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Allan Barry Laboucan
You’ve reached the page for the live and recorded version of the interview with David Lenigas, from Artemis Resources.
They are right in the heart of the new Aussie Gold Rush, partnered up with Novo Resources (NVO.V), with the partnership having recent news.
https://www.youtube.com/watch?time_continue=642&v=uLzX61pQmVc
here is the raging inflation the hard money crowd has been warning us about:
http://stockcharts.com/h-sc/ui?s=GCC&p=M&b=5&g=0&id=p84827344581&a=551063076&listNum=1
Yellen is laughing her a$$ off.