Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Gold Strongest Market of 2009, Even Central Banks are Buying

Commodities / Gold & Silver 2009 Nov 10, 2009 - 03:53 AM GMT

By: Douglas_V._Gnazzo

Commodities

Best Financial Markets Analysis ArticleThere is only one market making new highs – gold. Stocks, bonds, commodities, currencies, whatever, are nowhere near gold’s level. Gold is the strongest of the strong. Central banks are starting to buy it, as evidenced by India’s recent purchase. Russia and China plan to buy more to hold as reserves.


Gold’s luster is starting to shine bright as the strongest currency and asset in the world – a tough combination to beat and a hard act to follow. Below is a comparison of the industrials to gold. In my opinion this chart is a national disgrace, as is the chart of the dollar that follows.

Remember, however, that gold, commodities, and all goods, are priced in dollar bills: Federal Reserve Notes; or in Euros, Pounds, Yen, etc. All world currencies are paper fiat currencies, and they present an illusion of the highest order.

According to the Constitution, gold is money – not paper bills of credit. Likewise, the Constitution mandates gold and silver coin as legal tender and as the medium of exchange – not paper money or bills of credit.

It is an illusion with purposeful intent that prices gold and other goods in paper money. If paper money continually debases and loses purchasing power, than why should one accept it as a measure of value, let alone a medium of exchange of or for value?

If paper money has no real value, how can things priced in it have any real value? Is there any real value in such a system? This is the question Wall St. and the financial wizards on high should be asking. What the hell kind of system is this that has been sold to the American people? Is it real or fake?

What kind of a system can come to the edge of the abyss one day; and a few months later claim to be OK?

Perhaps one that climbed out of the abyss to start with; in which case, I suggest it should be returned from whence it came – post haste. Congressman Ron Paul is the only one in Washington that understands gold’s place according to the Constitution.

Gold

Gold is showing its luster as other assets fall to the wayside. The sovereign of sovereign’s added $49.50 for the week (+4.73%) to close at 1095.20 – a new all-time closing high. Gold has and is outperforming all assets of any stripe. It is the strongest of the strong.

Last week’s daily chart showed a negative MACD crossover. This week’s chart shows a positive MACD crossover is now in control. RSI is bumping up into overbought territory, but that is a sign of strength – not weakness.

If a pullback were to occur, the first support area is the upper yellow band near 1070.00. More significant support lies at 1022 – 1000.

The weekly chart shows the inverse head and shoulders breakout with the potential upside target being 1300.00. RSI is at 73.50 - into overbought territory.

Silver

Silver had an excellent week, adding $1.08 for a +6.59% gain, closing at $17.39. This week’s gain almost made up the entire loss of the previous week (-7%). If you like volatility and action, you’ll love silver.

Last week’s daily silver chart was chock full of negative indicators: negative MACD crossover; CMF money flows; negative RSI divergence, 50 dma broken below, etc.

After this week’s move up, MACD looks like it’s getting ready to put in a positive crossover. Silver’s fortune may rest on gold’s back. Price is bumping up into overhead resistance at 17.50, as marked by the upper horizontal black trend line (17.50). If a confirmed breakout above resistance can hold, then an assault on the Oct. highs near 18.00 is likely.

The weekly chart shows silver sitting on its 61.8% Fibonacci retracement level from its April 2008 highs.

Notice the significant overhead resistance from 16.50 to 19.00 represented by the yellow band that connects back to the April – July 2008 highs.

It may require a few assaults to eat away the resistance built up during those months in 2008. Then again – silver can rock & roll when it wants to.

The above is a short extract from the full market wrap report that can be accessed on our website listed below. Stop by and check it out.
Honest Money Gold & Silver is the only newsletter that offered a money backed guarantee to new subscribers if gold did not make a new high by the end of the year (2009). Call it lucky or whatever – the new highs are here and the guarantee is now off the table.

We felt confident in this call as we have been following gold’s inverse head and shoulders formation since early summer; suggesting an upside target of $1300.00 months ago. For a free trial subscription email us at the address below.

Good luck. Good trading. Good health, and that’s a wrap.

Come visit our website: Honest Money Gold & Silver Report
New Audio-Book Now Available - Honest Money  

Douglas V. Gnazzo
Honest Money Gold & Silver Report

About the author: Douglas V. Gnazzo writes for numerous websites and his work appears both here and abroad. Mr. Gnazzo is a listed scholar for the Foundation for the Advancement of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

Douglas V. Gnazzo © 2009 All Rights Reserved


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules