So, it's at best a bridging technology
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When the real T-Bill rate is negative below zero on the chart it means that rates are providing a negative return, adjusted for inflation. Normally, an investment that pays a higher interest has the advantage. Note that the two major bull markets in gold happened while real interest rates were mostly negative.
Plus, gold has been stronger than the other precious metals and gold shares, especially since last year when Europe started flaring up. Another good sign for gold has been its underlying strength as the U. Gold held above its December low, for instance, when the dollar index soared to an almost two year high. This type of situation tends to lead a renewed gold rise.
Demand also remains bullish. Central banks continue to be active buyers. In fact, central banks continued buying during weakness this past month. Chart 2 shows this comparison. This low is key. If it holds, all is well. For now, so far so good. Plus, as you can see on Chart 2B , gold is near a D low area, indicating that gold is close to a low. But we must also be prepared for a possible final washout, in case it comes. To refresh your memories , gold has moved in an impressive recurring pattern on an intermediate basis.
Bear markets tend to start with D declines and if this low is clearly broken, it would be a bad sign. Keep an eye on For more information, go to www. The content on this site is protected by U. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.
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The reality is that the Fed is trapped. Interest rate hike, who are they trying to bullshit. Anticipate what the crowd thinks is implausible. The FED is going to metaphorically burn themselves to the ground in the process. The will cease to exist in the aftermath the new financial paradigm. They will be part of the fiery ashes from which the Phoenix will arise.
They have not bought any gold mines yet, but this is a clever idea for this Indian jewelry maker. What better way to insulate your business from the volatility of the fictional fiat gold price then by owning the gold mine itself? Own the supply, get the gold at cost, ignore the daily, weekly, monthly or yearly price swings in the precious metal.
I see these pictures of Indian temples and people especially the beautiful women covered from top to bottom with tens of thousands or more of superbly worked gold, and the same question comes to mind. Where do they get the money for these purchases? Maybe, just maybe, they give up driving for several months to save on gas and walk to work or take the bus, maybe they give up eating breakfast on the weekends, maybe they postpone buying a new TV or computer just to save up to buy gold during the holy gold buying season in India.
Your email address will not be published. Time limit is exhausted. Notify me of follow-up comments by email. Notify me of new posts by email. He talks about backwardation in the London market. I had him explain what that means for listeners — something no other podcast host has ever done.
At any rate, he thinks — based on his observations and business dealings in the London gold market — that London is wiped out of physical gold available for immediate delivery.