RE: RE: 1,593 grams = 51.2 ounces [troy]Undeniably incredible results that belie the true value of this stock...and it is not alone. We are about to see a huge upside here and in many PM/JPM stocks. The big boys are near positioned now as they have colluded to keep miners/explorers suppressed. We are in for volitile but exciting times dead ahead.
Gold and Silver Price Decline is Over: James Turk
China Central Bank Advisor Urges Increase In Official Gold And Silver Reserves. Egypt and Tunisia usher in the new era of global food revolutions. Jim Rickards speaks twice...and much more.
European Inflation Quickens to Two-Year High of 2.4%
https://www.bloomberg.com/news/2011-01-31/euro-region-inflation-jumps-more-than-estimated-to-two-year-high-of-2-4-.html
Political risk has returned with a vengeance. The first food revolutions of our Malthusian era have exposed the weak grip of authoritarian regimes in poor countries that import grain, whether in North Africa today or parts of Asia tomorrow.
Egypt and Tunisia usher in the new era of global food revolutions
https://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8291470/Egypt-and-Tunisia-usher-in-the-new-era-of-global-food-revolutions.html
Monetary Disorder and Global Fragilties
- by Doug Noland
- January 28, 2011
https://www.prudentbear.com/index.php/creditbubblebulletinview?art_id=10497
China Central Bank Advisor Urges Increase In Official Gold And Silver Reserves
https://www.zerohedge.com/article/china-central-bank-advisor-urges-increase-official-gold-reserves
Geopolitical Instability in Middle East - Gold Today Like Gold in the 1970s?
Spot gold and silver fell 6% and 9% respectively in January. The January price fall looks very much like another price correction and consolidation and is to be expected after the 30% rise in dollar terms seen in 2010. Absolutely nothing has changed with regard to the fundamentals of the gold and silver market and investors should use this sell off as another opportunity to diversify into the precious metals.
https://www.zerohedge.com/article/morgning-gold-fixing-geopolitical-instability-middle-east-gold-today-gold-1970s
THE GOLD SHARE BOTTOM - COMING INTO FULL VIEW.
BE PREPARED TO TAKE ACTION!
Chuck Cohen
MAKING AN ULTRA-BULLISH TECHNICAL CASE FOR GOLD
Although we might be witnesses of a riveting stock market drama, because of the uniqueness of the gold and silver situation, I believe our attention must now be shifted to the precious metals shares.
Most gold analysis, as it should, tends to focus on the metal's fundamental merits: Supply and demand for the metal, fiat money creation (QE2,) a fractured financial structure, the inevitability of monetization due to the unsolvable debt problems and the like. Most of the articulate gold champions like Bill Murphy, Jim Sinclair, John Embry and John Hathaway consistently and eloquently explain gold's fundamentals. These men are all required reading, if you are an investor.
A SELLING CLIMAX COMING IN GOLD?
…the gold price has been making a rolling top although this is an arbitrary view since the beginning of September (it is not a coincidence that the stock market bottomed out just before then, as everything has been feeding off a massive surge of liquidity.) Right now gold has the appearance of a scary looking spike down. Since November I have been favoring a drop under $1,300 because (1) $1,300 has never been tested and (2) As gold bottoms do, it would serve to shake out a lot of the nouveau bulls and (3) It would draw in a lot of new shorts, thus preparing for an explosive catapult up out of the bottom.
I feel we are almost at, what I call an historic inflection point in the world markets, and if I am correct, monumental monetary events are lurking just ahead. More importantly, it will mark the true beginning of the once-in-history gold share market in which some miners will go up 100 times, or even more.
OVER TEN YEARS GOLD HAD RISEN FROM $250 TO $1400, AND YET STILL HAD NO TRUE BREAKOUT. TODAY, THE HUI IS ONLY 25% ABOVE ITS PRICE OF 2006 WHEN GOLD WAS $700. LOOK FOR A BREAK OUT SIMILAR TO THE DOW'S TO COME SOON.
C. THE EXTREMELY HEAVY VOLUME IN THE SILVER SHARES
As silver shot up in the summer, the silver mining shares started to rise sharply also. While this occurred, the gold shares mysteriously continued to trade quietly and remain fairly static. The volume in the silver shares especially Silver Wheaton and Hecla was totally out of character with their normal trading patterns especially considering the how mute the volume in the HUI shares remained. Extraordinarily high volume usually is a clue that the stock or stock group will eventually retrace much of their moves. This doesn’t mean that the silver shares won’t be huge winners (I believe they will) but the difference in character between them and the HUI gold shares made the move very suspicious, and kept me very cautious.
BUT THE TECHNICAL READINGS BEGAN TO CHANGE.
As gold made its recent top last month, the sentiment towards gold started to drop fairly sharply, a very positive sign. This shift can be seen in various indicators.
A.THEDOUBLE LONG-DOUBLE SHORT ETFS(DGP-DZZ)
B. THE CENTRAL FUND OF CANADA--PREMIUM AND DISCOUNTC.
E. OPEN INTEREST ON THE COMEX.
F. THE PRECHTER PHENOMENON
G. THE VARIOUS SENTIMENT POLLS
1. THE SENTIMENT TRADER GOLD POLL
2. THE MARKETVANE POLL
3. THE HULBERT SURVEY
4. THE RYDEX PRECIOUS METALS CASH FLOW
WHAT ABOUT THE SAVVY CANADIANS?
…. Advisors' outlook for broad-based equity indices remained clearly bullish as most major stock indices delivered strong returns in 2010.
…Gold at a new all-time high is too scary, but the stock market which is still 20% below its all-time high is still enticing.
6. THE HUI SHARES—ANOTHER KEY TO PINPOINTING THE BOTTOM
…the shares are now digging in their heels, especially on those days when gold has been down sharply. The significant pick up in volume on the downside since the beginning of January in the shares is a sign to me that we are close to reaching the bottom.
I am looking for one last shot down in the metal, but as this occurs the volume in the shares should trade abnormally high and not giving any ground, and perhaps even moving up.
THE MCCLELLAN CYCLE.
A SECOND MASSIVE SHIFT OF WEALTH
Unbeknownst to most of the mainstream media, and accordingly most Americans, the world has been undergoing seismic wealth transfers. Since 2001 the obvious one has been the shift of wealth from the western nations including America, to the eastern countries, in particular India and China. The reasons are many but fundamental—the west’s economic maturity, its profligate living style, its lack of savings, enormous debt loads, public and government loads and an aging population have all contributed to a static standard of living. The Asian nations, for almost the opposite reasons, have emerged as the growth countries of the world.
But there has also been a more subtle wealth transfer occurring. It is to those who I call “the gold community or gold believers, to use an evangelical term.” There are many people today who are just scrapping by, but who believe that precious metals are their only life preserver against an out-of-control and manipulated monetary system. It will be these investors who will find themselves not only prepared but to prosper as the eventual “pay day” arrives.
It isn't a coincidence that most of the newly wealthy countries are gold friendly, while Europe, and especially the US still view gold as an anachronism, a throwback to William Jennings Bryant. If my assumptions (plus countless others) are sound, this trend from paper to gold is about to accelerate almost at the speed of light. Being a bible lover, I find today’s world situation very similar to the story of Joseph in the Book of Genesis, as he foresaw the time of plenty turning into famine.
GET READY FOR ACTION.
I have learned from experience (and pain) that the best market advice is to be positioned in advance for the major moves. I am not a fan of top calling in this monumental precious metals bull market because most likely if one sells out, he will likely find himself unable to get back in profitably.
So my advice at this point is not to try to fine tune too closely this final part of the decline even if it gets really emotional, but instead get ready to take action. This means you should be prepared for a final shot down under $1,300 that might make you think that gold may never go up again. If this happens (or it may not happen) it might take place so quickly that you might end up chasing the stocks or the metal as they rise. Jim Sinclair (I think it was him. Maybe it was Jon Nadler. It wasn’t me) has said that if you can get within 20% of a bottom or a top in a major bull market you will be doing well. So it would be wise to heed his wisdom here.
ASSUMPTIONS
I am expecting any severe weakness in the financial markets to be fully met by a full assault by the monetary authorities, with almost unlimited printing of more paper. Most likely it will be what Jim Sinclair has termed, "QE2 towards infinity." But this time the reaction in gold and the mining shares should be different from all other times. The dramatic change in sentiment towards gold at this time tells me that the precious metals are a tinder box awaiting a match. Since we still have not had any inkling of speculation, it is very likely that this move will finally result in what many of us have been expecting all of these years.
For this move, as much as I have been emphasizing the larger shares for timing purposes (and I believe they will do spectacularly well), the ultimate play will come in the smaller exploration companies. The fundamentals of the gold industry and the type of cycle we are now in, will result perhaps in the greatest appreciation in the history of financial markets.