Sunshine Profits

Recent developments on the currency market may worry some gold and silver investors, as dollar refused to move lower at the cyclical turning point, an issue which we touched upon in our last essay, and euro seems to have broken below its medium-term rising support line.

The Dow Jones Industrial Average climbed a steep wall of worry and last Tuesday returned to its all-time high from late 2007.

Investors’ sentiment in the whole precious metals sector is so low that it seems it almost cannot move any further below its current level and it has profound implications for the market:

There are a lot of words in the dictionary to describe what you need these days to be a gold investor: patience, endurance and fortitude are some of them

Investors sentiment for precious metals and gold and silver mining stocks has deteriorated quite substantially recently. And silver is no exception here, which can be seen on the white metal charts.

We have been witnessing the abnormal situation in the intermarket correlations for quite some time now, i.e. positive correlation between dollar and gold and silver (or virtually no correlation at all) , and negative one between the general stock market and precious metals sector.

Gold roller coaster seems to go on and on without an end. But what we have seen this week was more of a bungee jumping.

The World Gold Council published a report last week that raises a few important questions and quite a few eyebrows, so let’s examine it.

This week price moves in the gold market could certainly give investors the creeps.

Precious metals mining stocks may not look too encouraging recently – with mostly declines in 2013 and lack of any spectacular rally.