Gold

Sentiment in the financial markets always gets re-balanced by two variables: time and price.

This was the week the Federal Open Market Committee decided to start tapering.

By November, the most recent month for which statistics are available, the US Fiat Money Quantity (FMQ) had grown to $12.351 trillion.

Many times in our previous essays we have written that if you want to be an effective and profitable investor, you should look at the situation from different perspectives and make sure that the actions that you are about to take are really justified.

One characteristic of an investment bubble is dramatic upward price acceleration during the final 6-12 months of a long-term advance, followed by a price collapse.

All markets go through cycles.

This chart compares Gold’s current correction to the bursting of four bubbles: Dow in 1929, Gold in 1980, Japan in 1990 and Nasdaq in 2000. If Gold’s secular bull market was over it would correct similarly to the bursting of these bubbles. We don’t see that whatsoever.  

This video looks at the historical bear markets (together in analog form) for Gold, Silver & the gold stocks. The charts in the video will give you a visual comparison between today’s bear market and those in the past. Plenty more of this type of analysis and chart can be found in our premium service. … Continue reading

Source: JT Long of The Gold Report  (12/13/13) What is holding down the gold price? Fear of the end of quantitative easing? Manipulation by a few big players? Central banks leasing inventories? CPM Group Managing Partner Jeffrey M. Christian says forget about all of that. The bottom line is that demand is down as investors big and … Continue reading

Hedging. The term had become somewhat of a dirty word in the gold business. With producers having spent the last decade attempting to reduce their hedge positions. In order to gain exposure to a rising gold price. But it appears the tables have now turned. Gold prices have moved down rather than up. And so a … Continue reading