Gold

The implications to the gold price when backwardation appears are widely misunderstood so I have prepared this brief note to explain backwardation, of which there are two types – money backwardation and commodity backwardation - and, as I explain below, both apply to gold.

The window of opportunity to buy physical gold and silver continues to narrow. Like the housing market top was known to be coming, when it came, those who waited too long regretted it. When the bottom for the physical PMs is known as a certainty, those who waited for a “better price” may also regret that decision. It is all about choice.

There is no escaping the inevitable - if you aggressively debase your currency eventually you are going to have a currency crisis. The first one has now begun. Words: 350; Charts: 2

In an election, it does not matter if voter turnout is high or low, the outcome is determined by the actual votes cast. The same holds true for the markets. Only those who make an actual buy or sell decision determine the outcome of the market trend. The market “voters” turn up in charts, recorded in the price range, close, and volume. Collectively, a “story” unfolds, and it usually is an accurate one as it does not include any opinions. Opinions do not matter. Articles written about fundamentals, pundit declarations, etc., all fall under the category of opinions. The market is the best source for information, and that is a fact.

Support is support until it collapses but if the 10-year support line for the HUI Index is breached it is a loooong way down!!!

This article identifies and analyzes the realities that have been, and are, affecting the gold market unlike any other article you have ever read on the subject. Get truly informed to better understand what has happened and why and what the future holds for the price of gold and why. Read on and enjoy.

Frankly, I cannot see how one can distinguish the Fed from the European banking system and looking at things in this way provides a very different picture of the international landscape. The Fed is dependent upon euro printing in order to ramp up dollar printing, yet they are both one and the same. All of the GS boys running over to Europe after the Fed banks defaulted on the OTC derivatives takes on a new light in retrospect. It was a family reunion!

...Fiats have an unbroken track record of failing throughout all of history. Gold also has an unbroken track record of being a store of value for over 5,000 years. Yes, there have been hiccups along the way, and we are in one now. It is what it is, but what it is is also an incredible buying opportunity at “fire sale” prices....[That being said,] a look at the charts of the paper-tracked PM market [beg the question] ... “Where’s the beef?” Where is the substance of anything? We see none in the charts. Take a look. Words: 610; Charts :4

There is a remarkable correlation between the prevailing level of global liquidity (defined as the sum of the U.S. monetary base and the foreign holdings of U.S. Treasuries) and the price of gold per troy ounce. The current correlation suggests a gold price of $1,780 as illustrated by the chart below.

Gold has busted up on the open to take out the $1300 resistance. This article explains the reasoning for that move, why it is so pivotal in nature and what to expect in gold pricing action over the short term.