Submitted by Stewart Thomson:
India’s citizens buy gold, any way they can get it, to protect themselves against government stupidity and theft. Western bank economist price targets of $1100- $1300 mean absolutely nothing to these gold market champions. If the average Indian is not afraid of lower gold prices, should you be afraid? The answer is clearly… no! Every “card carrying” member of the gold community wants to see higher gold prices, and it will happen, but patience is required. It’s quite sad that hundreds of millions of Asians are lined up in the streets to buy physical gold, while many Western gold analysts are doing nothing other than pasting “long term trend is down” annotations on every gold chart they can find.
If the long term trend for gold was down, Asians would not be lined up in the street to buy it. Gold is not a dollar-bug’s whipping boy. It’s the greatest investment asset in the history of the world, and the only one that should never be sold at a loss! [Read more...]
If Gold’s Long Term Trend Was Down, Asians Would Not be Lined Up to Buy!
Stewart Thomson: Silver to Grind Higher While Bears Look for Collapse to $18
Submitted by Stewart Thomson:
Obviously, the decline from $1500 to $1320 has left a lot of gold investors stunned. In a situation like this, I think it’s important to keep things very simple, or you can create a panic in the “gold building”, when there is no fire. The media has reported substantial “mom and pop” gold buying, around the world. Chinese, Japanese, and Indian households are accumulating gold, but so are households in America, Canada, England, and Australia. That buying is being countered by ETF selling, and this “battle” is likely creating the range between $1440 and $1480. The price action of gold will likely determine the next big move for silver. I think that silver will grind its way higher, towards the $27 area, while many bears think it is headed towards $18.
Gold Fights For $1500
By Stewart Thomson:
Quantitative easing is not the same thing as just printing money and pushing it into the banking system. The inventory of marked-to-model OTC derivatives held by commercial banks is gigantic, so it could be many years before serious “cost push” inflation envelops America.
The Fed believes in a business cycle that lasts for about 8 years. The last cycle probably ended in 2007, which means that the actions of global central banks, in the 2015-2022 timeframe, are likely to usher in massive cost push inflation. [Read more...]
Stewart Thomson: 4 Golden Kisses!
Submitted by Stewart Thomson:
When gold was trading at $1923, the four key price areas to buy gold were $1577, $1432, $1266, and $1033. I call them HSR zones (horizontal support & resistance).
In the gold market, HSR on the monthly chart is the holy grail of wealth building.
Quite frankly, if you want to come out of the financial closet, and admit you sometimes kiss your gold, those are the only 4 price points to prove your love. Four golden kisses is all that “Queen Gold” will allow you to give her, on the huge monthly chart price grid. Think about that.
Yesterday, gold traded at one of those key “kiss points”, $1432, and it’s trading under that price now. I dare everyone in the gold community to come out of the closet, and give your gold a small “$1432 buy kiss”.
Stewart Thomson: Gold Awakening, Dollar-Bugs Should Take Serious Shelter!
Submitted by Stewart Thomson:
Time in the congestion pattern “hourglass” is running out quickly, and a trending move, either up or down, will begin very soon.
From a technical standpoint, congestion patterns have roughly a 2/3 chance of consolidating the primary trend (up in this case), and a 1/3 chance of reversing it. This is clearly good news for gold investors.
Gold has rested, and looks to me now, like it’s a cat that is stretching lazily, after a wonderful nap. If I was a “dollar-bug mouse”, I would consider looking for some serious shelter, very soon.
[Read more...]
Bank of Japan Set to Unlease Massive Cost-Push Inflation, Propel Gold Well North of $2,000
Image: Jonny O’Callaghan
Submitted by Stewart Thomson:
All financial eyes should be focused on the BOJ (Bank of Japan) right now. Money managers are calling this week’s BOJ meeting, the most important one in many years. Key market players expect Governor Kuroda to imitate Ben Bernanke’s actions, and begin buying longer maturity bonds, and more of them, with electronically printed yen.
Kuroda has said he will do “whatever it takes” to get the Japanese inflation rate up to 2%. Cost push inflation (CPI) will likely be the horrific consequence of doing “whatever it takes”. Japan is the 3rd largest economy in the world, far larger than Germany, which is number 4. CPI could devastate Japanese savers. Worse, because Japan is such a large economy, CPI could spread around the world, and I think it will.
The only good news about CPI is that it could push the gold price well above $2000, and push your gold stocks to new highs. [Read more...]
Stewart Thomson: Gold Stock Insiders & Patience
Submitted by Stewart Thomson:
Canada’s Globe & Mail newspaper recently published an article showing that gold company insiders are aggressive buyers of their own stock, at current price levels.
In the big picture, that’s great news for gold stock investors! Unfortunately, while long term market fundamental & technical indicators suggest that gold offers tremendous value to investors, the daily charts of gold and related assets… seem to be presenting quite a different picture.
Stewart Thomson: Central Banks Will Push Gold Higher, Retail Investors Will be Lining up in Bread Lines
Submitted by Stewart Thomson:
My long-held view is that at the end of this gold bull market, American retail investors will not be lining up in the street to buy, like they did in the 1970s.
Instead, they will more likely be lining up in real breadlines, like they did in the 1930s. Central bank buying will push the gold price higher and higher, and their balance sheets will probably look vastly worse than they already do.
Fundamentals make charts. The fundamentals of the Fed’s balance sheet are likely to make gold and gold stock charts look very good, but only for investors who buy at lower price levels, when it is uncomfortable to buy.
[Read more...]
Stewart Thomson: Metals Rally Time!
Submitted by Stewart Thomson:
Big bull market moves occur with enormous negative sentiment, and it is the liquidity flows of short covering that produce the most violent jumps in price, to the upside.
Those factors are in play now, but they would be “outrageously in play”, at $1400-$1450. Have no fear of a drop to that price area. I would not sell any holdings now, to avoid such a fall, even if I was 99% sure it would occur.
If the gold price fell to $1432, what would probably follow is a relentless rally, straight to the $2000 area. [Read more...]
Stewart Thomson: Dollar Bugs About to Strike Out Against Silver Bullion
Submitted by Stewart Thomson:
Every baseball player knows the saying, “3 strikes and you’re out!” Well, the dollar bugs may be about to strike out, against silver bullion. In the previous 2 corrections, silver made a “capitulation low”, and that was followed by a final lower low, which looks like a spike.
The same set-up is in play now. Of additional interest, is the fact that the silver market now shows three corrective phases, since topping in October. It’s quite possible that the next rally will be of “intermediate trend quality”, rather than just a minor uptrend that ends quickly.
If I had to buy just one metal now, I would choose silver, but all investors should own more gold than silver, in a super-crisis.
Stewart Thomson: Chairman Bernanke: Thumbs Up For Gold?
Submitted by Stewart Thomson:
From the daily bond market chart, you can see that a breakout from the bullish wedge pattern has occurred. The first target in the 145’20 area was touched yesterday. If the bond can rise above 150, I think gold will surge over $1800. Regardless, a rising bond price is good news for gold & silver investors, at this stage of the crisis.
Once cost-push inflation (inflation in goods for which there is little or no substitution available) becomes a concern for institutional money managers, gold should rally even more strongly, while the T-bond falls in price. [Read more...]
QE & Gold Revaluation- The Central Bank Nuclear Weapon
Submitted by Stewart Thomson:
Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.
Gold is going higher, much higher. It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold. The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight. There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.
I consider the idea that the gold bull market is over to be “beyond ridiculous”. I would argue that for all practical government intents and purposes, it’s barely started. Ben Bernanke will soon have a hard decision to make. He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.
Metal Surfers & Fed Tidal Wave – Stewart Thomson
Submitted by Stewart Thomson:
Too much money printing can cause a currency panic. That would be followed by institutions pulling out of the country altogether.
The reason I want own to gold is because governments are attempting to print their stock markets higher. Gold and resource stocks will drastically outperform the global stock market indexes like the Dow and the Nikkei.
The period of drastic out-performance should have come earlier, but it didn’t, due to the implosion of Lehman. Gold and gold stocks were beginning to go parabolic in 2008. While the Lehman event delayed the parabolic move, it also made the crisis bigger, and probably greatly increased the size of the ultimate move.
On the daily chart, bonds are the most oversold, and gold is close behind. Don’t worry, silver is in very good hands, and soon the “wild one” will be oversold too, and ready to surf the rising Fed balance sheet, to higher prices!
[Read more...]
“James Bond’s Golden Gun” – Stewart Thomson
Submitted by Stewart Thomson
I refer to gold bullion as “Queen Gold”, and the US T-bond as her secret agent James T. Bond. At some point, Sir James is going to outlive his usefulness to your queen, and a great bear market in bonds will unfold.
Specifically, I believe that the pressure put on all fiat currencies by the global tidal wave of QE, will make it appear that hyperinflation is a “done deal”. I don’t think you are going to experience full hyperinflation in this crisis, but you’ll get something very close to it.
As that happens, central banks around the world will likely begin raising rates aggressively, to combat the severe institutional loss of confidence in all fiat currencies. So, should you hold & buy gold now, or wait until 2015? The answer is that you should buy now. [Read more...]
Stewart Thomson: Gold Fed Balance Sheet Breakout!
Submitted by Stewart Thomson:
Quantitative easing and “rates to zero” policy is spreading to every major economy around the world. Horrifically, despite these enormous “fire hoses of liquidity”, gold stocks continue their unending slide. By this point in the gold “super bull” market, most gold stock investors believed they would be wearing a crown of solid gold.
The market never ceases being a fight, and in a super-crisis, the fight becomes a “clash of the titans”. Gold stock investors have never faced a greater challenge than they face right now, but neither have the bears.
The biggest weapon held by gold stock bulls, is the central bank of the United States, and over the next two days, the bank’s open market committee engages in key policy discussions. The meeting culminates with the release of a statement to the public, at 2:15PM, New York time, on Wednesday. For all practical intents and purposes, the primary driver of the gold price is the balance sheet of the central bank of the United States.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
