Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

The Truth About Central Bank Gold Buying

Commodities / Gold and Silver 2013 May 27, 2013 - 03:49 PM GMT

By: EWI

Commodities

Dear Trader,

Volatile price action is a surprise to most investors most of the time.

That's definitely true of precious metals in the past 30 days. But, the real story is far bigger than just one month. In fact, gold and silver have seen declines of more than 30% and 50%, respectively, since 2011. Now that's news!


If you invest in precious metals, you owe it to yourself to read this brand-new report, Bob Prechter's Big 5 Gold Warnings for Bulls and Bears, from Elliott Wave International.

Inside the new report, you'll learn the truth about:

1) Central Bank Buying
2) Fed Inflating
3) The "Crisis Hedge" Argument
4) The "Gold is Cheap" Argument
5) The Conviction that Post-Peak Lows were Support

Follow this link to learn more about Bob Prechter's Big 5 Gold Warnings for Bulls and Bears and get your very own copy now -- it's free >>

Excerpt:

1) Central-Bank Buying

An article published on April 19 quoted a report issued by one of the world’s most famous money managers. It reads, “We believe that ongoing central bank purchases and strong gold demand from China and India will help support the gold price in the near term.” At Elliott Wave International, we have used the very same fact of central bank interest in gold to come to precisely the opposite conclusion. In September 2011, the month of the all-time high in gold, EWT made this observation:

Last November, the president of the World Bank opined that governments should reconsider the role of gold in their monetary systems. Governments thrive on counterfeiting money and hiding that fact. The notion of paying respect to gold, in this context, is a radical idea, indicating how deeply the bullish consensus on gold has influenced people’s thinking. Gold’s downturn is either already in place or really close.

As recently as two months ago, reports of aggressive central-bank purchases of gold throughout 2012 sparked assurances that such activity would force gold prices higher. As gold hovered enticingly around $1600/oz., the February 20 issue of EWT pushed our converse point of view even harder:

After a major top and during the first decline of a bear market, novices buy heavily in what they think is just a pullback in an ongoing bull market. It has just been reported that central banks bought more gold in 2012 than in any year for nearly half a century. No doubt they believed that the setback in gold after its high of 2011 was a pullback to buy. They sold all the way up and finally bought. Central bankers are not good traders. They have been making policy mistakes of historic proportion for five years. This is just another one of them.

It is premature to say our logic proved out, but so far it seems that central banks have once again shown that they are not good market timers, and it seems that investors have once again shown that they overvalue both central-bank power and the external-impact theory of financial price movement.

Continue reading in the FREE Report ...

Thank you for reading,

P.S. If you follow the link above, you'll see a stunning chart of some of EWI's gold and silver forecasts over the past three years. When a market's wave patterns are clear, as they are now in gold and silver, it is a remarkable sight. See the chart now.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

© 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