Friday, March 27, 2015

Gold Market Comments

Heraeus Metals NY

The Yemen news yesterday gave a short lived pop to gold. But yet there is something else going. In Asia gold traded as high as 1206. In London and NY it has traded above 1200 only to retreat. Today’s  fourth  quarter GDP report was  a little higher but the annualized was lower than expected which should have been bullish for gold. Reuter’s Michigan Consumer sentiment was slightly higher than expected causing a net zero effect on market direction. The precious metals complex remains under the gun from the expectations of higher interest rates, futures shorts and ETF liquidations. But in the battle of direction it does not seem that shorts hold all the cards as every good dip has been met by buying. The question is who will tire first, the bulls or the bears before a new direction is made clear when the dust finally settles.

Sunday, March 22, 2015

The USA Debt Problem

And you think the current USD price of gold really means anything with a USA debt of $16 Trillion? Gold as a safe haven has outlasted every government, bank, currency and stock market in all history. It has been and always will be the only form of sound money. BK

Saturday, March 21, 2015

Why gold will see $2,000


March 18, 2015


The income effect implies that consumer purchasing power increases as real wages rise, and as such, the demand for gold will increase as more people can afford to buy it. In Asia over the past few decades, the income effect has been dominant. The Asian economies (particularly China and India) have enjoyed strong growth, but still have a relatively tightly regulated and narrow financial system. Gold has been a beneficiary of these challenges as it is largely not subject to the same regulations as the wider financial system. Given that gold has also played a strong role in Asian cultures, the demand is even higher than purely financial factors would suggest.  Read more...
Central Bankers have always had a stash of gold. I choose not to argue with the people who control the value of our money. 

"Do as they do, not as they say."