Gold, Silver & Other Commodities

Despite all the bullishness about gold and silver and the mining industry, I’ve maintained for quite some time the view that this first leg up will be dramatically retraced with a crash heading into October.

Today's infographic guides you through the largest physical gold trading market in the world, China.

You can be 100% assured that acquiring both or either metal is the smartest move one can make to escape the certainty of the Western world financial calamity that is destined to follow. Keep buying as much gold and silver as possible, and we continue to prefer silver over gold, for now.

A remarkable but little noticed development has occurred behind the scenes of the SPDR Gold Trust (GLD) over the last 3 years. This development concerns the very high level of executive staff turnover at World Gold Trust Services, the New York based ‘Sponsor’ of the mammoth gold GLD gold-backed Exchange Traded Fund that is listed on the NYSE.

The low of $1,310.70 in gold last week appears to have marked the cycle bottom. With the Fed meeting behind us, gold prices are primed to rise through August - and likely into September - where they will form the next intermediate cycle top.

The Toronto-Dominion Bank, which oversees more than $230 billion in assets, has “shifted to a ‘maximum overweight’ in gold for its portfolios due to its overall feeling of uncertainty brought about by a sluggish global economy, the Brexit vote, central banking policies, and the upcoming US presidential election.

The Economist Intelligence Unit has produced its first global forecast since the Brexit vote. Please find below their forecasts for commodities until 2020.

As we documented in our extensive Gold Series, gold has been used as a monetary metal for thousands of years... It’s the most malleable and ductile metal, and it doesn’t tarnish or corrode. Over time, these properties have helped people to associate gold with concepts such as immortality or royalty. Even today, people are still finding new uses for gold that are impressive in their own right. For example, scientists recently discovered a gold alloy that is four times tougher than titanium. The following infographic puts the rich history of gold into perspective.

This is not a sound for alarm, for the trend for gold & silver remains up, BUT there could be some more corrective activity in the next few weeks. Here's what the charts have to say about the current situation.

I believe that the market is no longer fearful and that gold has had its moment. After a multi-year rout gold began to pick up pace in 2016 when uncertainty seemed to be omnipresent but my view has stayed consistently positive as I have not identified any material weakness in the economy. Let me explain why that is the case.