Fact 1: This chart stinks, but is deeply over sold.
Fact 2: It will stink worse if the price of gold gets below the Dec. low.
Fact 3: I derided Dennis Gartman for jumping the gun on what may turn out to be a great call (gold to 1400). I was wrong to do that.
Fact 4: People are puking gold to dealers now. I know because I just sat and talked with one.
Fact 5: The CoT structure is getting more bullish, as speculators large and small sell, and commercials cover.
Fact 6: The chart may not care what the CoTs are doing because when fear takes hold it takes on a life of its own.
Fact 7: The gold-silver ratio is rising.
Fact 8: Well, this could go on all day but let's just say that deflationary pressure is in the air (Cu, etc.) and things have swung to the total opposite of the spectrum from the inflationary events of last spring. And until the stock market cracks and economic reports stop coming in mixed, the QE that the gold community awaits will probably remain under wraps.
Know who you are, what you are doing and why you are doing it.
http://www.biiwii.blogspot.com
http://www.biiwii.com
Fact 2: It will stink worse if the price of gold gets below the Dec. low.
Fact 3: I derided Dennis Gartman for jumping the gun on what may turn out to be a great call (gold to 1400). I was wrong to do that.
Fact 4: People are puking gold to dealers now. I know because I just sat and talked with one.
Fact 5: The CoT structure is getting more bullish, as speculators large and small sell, and commercials cover.
Fact 6: The chart may not care what the CoTs are doing because when fear takes hold it takes on a life of its own.
Fact 7: The gold-silver ratio is rising.
Fact 8: Well, this could go on all day but let's just say that deflationary pressure is in the air (Cu, etc.) and things have swung to the total opposite of the spectrum from the inflationary events of last spring. And until the stock market cracks and economic reports stop coming in mixed, the QE that the gold community awaits will probably remain under wraps.
Know who you are, what you are doing and why you are doing it.
http://www.biiwii.blogspot.com
http://www.biiwii.com
I think it is a terrible assumption that gold prices can only go up with the aid of QE. Look at the pathetic performance of the miners throughout the earlier QE's. Whne it's time for gold to rise, it will rise and it will not need an excuse.
ReplyDeleteI agree with PK because we had gold and the stocks start their bull market in 2001 several years before any sniff of QE.
ReplyDeleteI agree w/ you both. Fundamentally, the gold stocks like economic contraction and deflationary pressure. Price wise, unfortunately they often run after the fundamentals have been fed by the counter cycles. They run with all the inflated items that QE type policy tends to pump.
ReplyDeleteWhen you hear a gold bug pumping gold miners, oil and copper all at the same time, take caution.