For those who are chart oriented, here are a couple of interesting charts. An 11 year continuous bull market in gold ended in 2012. The entire 500%+ move was missed by douchebags like Barry Ritholtz and the other blowhard Wall Street shysters. They have been joyous over the last three years as gold has fallen a whole 35%.
The efforts of the Federal Reserve and their Wall Street owners to suppress the price of gold has been blatant. The massive sell orders designed to drop the price can be clearly identified. Rising gold prices reveal the economic dysfunction and Fed created inflation. Therefore, optics are everything while the ruling class finalizes their pillage-fest. But gold has begun to test resistance in its downtrend. If it breaks through the $1,300 level, it could be off to the races.
The price of gold has had a 93% correlation to the national debt over the last 114 years. This makes total sense, as the debasement of a fiat currency through debt creation makes hard assets that have retained value for centuries more valuable. The Fed’s manipulation and Wall Street’s rigged markets, with the blessing of the Federal government, has put a lid on the price of gold for the time being. Based on the historic correlation, gold should be priced at $1,700 today. The government adds $2 billion of debt per day. They are only men attempting to retain their wealth and power though dishonest means. They will fail. The US fiat currency will ultimately achieve its true value – ZERO.
If someone offered you 100 ounces of gold or $125,000 in fiat currency today and told you it couldn’t be touched for 20 years, which would you choose?
Anyone with enough fiat to purchase Au/Ag (not I, unfortunately) should be stacking in a secure location. I’ll be stickin’ with plumbum ’til I hit the Lotto #. My horoscope reader says that’s comin’ real soon. She’ll get her cut and more (much younger than I).
Opinion: Gold may be a ‘buy’ as investors turn ever more bearish
By Mark Hulbert
Published: Sept 10, 2014 6:00 a.m. ET
The last time such gloom set in, the yellow metal staged a rally
CHAPEL HILL, N.C. (MarketWatch) — Gold is finally getting close to a bottom in prices.
That is the surprising conclusion of contrarian analysis, which for months now has stubbornly refused to turn positive on gold — even as the yellow metal has suffered a death by a thousand cuts. Just this week, for example, bullion hit a fresh three-month low — among indications that gold’s recent decline has violated some key technical levels.
But what contrarians focus on is market sentiment, and on that front there has been a big change: For the first time in a long time, a large number of short-term gold timers have decided to throw in the towel.
As a result, the market-timing community on balance is now more bearish than it has been in 14 months — which, according to the contrary logic of contrarian analysis, is a bullish development. The last time the typical gold timer was as gloomy as he is today, gold began a two-month rally in which it gained more than $200.
Consider the average recommended gold market exposure level among a subset of short-term gold market timers tracked by the Hulbert Financial Digest (as measured by the Hulbert Gold Newsletter Sentiment Index, or HGNSI). This average currently stands at minus 40.6%, which means that the typical gold timer is recommending that clients allocate nearly half their gold-oriented portfolios to going short the market.
That’s a particularly aggressive bet that gold will keep declining, and — at least according to contrarian analysis — these timers are unlikely to be right.
As recently as last week, the HGNSI had not fallen below minus 21.9%. That was less than the lows to which this sentiment index fell last December (minus 36.7%) and in the summer of 2013 (minus 56.7%). And that, in turn, led me to conclude that contrarians were not yet ready to bet on even a short-term rally.
That’s why, in mid-July — the last time I devoted a MarketWatch column to a contrarian analysis of gold — I argued that sentiment conditions were not yet favorable for gold. “Unless you have nerves of steel and are ready and willing to hold on to gold despite extraordinary volatility,” I concluded, “you might want to wait until sentiment conditions are more favorable.” Gold at that time was trading at around $1,310 an ounce.
The usual qualifications apply, of course. Sentiment is not the only thing that moves the markets. And even when contrarian analysis is right, it doesn’t necessarily have pinpoint accuracy. But, because sentiment analysis has been on the correct side of this gold market in recent months, it’s definitely noteworthy that it’s now more optimistic.
it does appear that gold “investors” are throwing in the towel. but who are these people and what are they invested in? not physical gold. the vast majority of gold bullion buyers never sell. and even more so, the uber rich billionaires who may have a couple tonnes stored away beneath their mansion–they sure as hell aren’t selling. nor are the central banks. all that physical gold is just sitting there. so the price grinds its way downward. what is happening? if you listen to the talking idiots on the boob tube you hear a whole lot of nonsense along the lines of “gold is losing its luster” etc. yes, among speculators, and traders, who deal in securitized gold, paper gold, derivatives. if you call up your broker and ask “hey can i get some gold?” you might hear something like, “we can get you exposure to gold, how’s about GLD?” for most people in the west this is sufficient. it’s these types of people who are headed for the exits. paper gold holders and traders are dumping their paper, that’s all. this drives the price down.
when is the last time you heard a chucklehead on the bizness newz shos ask the question, “why is it that hard assets like farmland, new york and london real estate, french wine, fine art, etc. have been bid up so high the last few years, perhaps even the last decade or so, and little old gold, also a “hard asset” remains mired below production costs in some cases? on the face of it it’s absurd. but not really, since gold is treated like a commodity. that is the absurdity. gold does not decay, its stock is not depleted. it’s not even hardly used in industry. thus, gold is treated and traded like something it is not. as such, it will not shoot to the moon, unless oil is bid up. the hope for gold holders is that the physical stops flowing and the derivatives markets collapse. i see this as inevitable, and then what will ritholtz and the other wall street whores say?