Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
US Housing Market House Prices Momentum Analysis - 26th Feb 21
FOMC Minutes Disappoint Gold Bulls - 26th Feb 21
Kiss of Life for Gold - 26th Feb 21
Congress May Increase The Moral Hazard Building In The Stock Market - 26th Feb 21
The “Oil Of The Future” Is Set To Soar In 2021 - 26th Feb 21
The Everything Stock Market Rally Continues - 25th Feb 21
Vaccine inequality: A new beginning or another missed opportunity? - 25th Feb 21
What's Next Move For Silver, Gold? Follow US Treasuries and Commodities To Find Out - 25th Feb 21
Warren Buffett Buys a Copper Stock! - 25th Feb 21
Work From Home Inflationary US House Prices BOOM! - 25th Feb 21
Man Takes First Steps Towards Colonising Mars - Nasa Perseverance Rover in Jezero Crater - 25th Feb 21
Musk, Bezos And Cook Are Rushing To Lock In New Lithium Supply - 25th Feb 21
US Debt and Yield Curve (Spread between 2 year and 10 year US bonds) - 24th Feb 21
Should You Buy a Landrover Discovery Sport in 2021? - 24th Feb 21
US Housing Market 2021 and the Inflation Mega-trend - QE4EVER! - 24th Feb 21
M&A Most Commonly Used Software - 24th Feb 21
Is More Stock Market Correction Needed? - 24th Feb 21
VUZE XR Camera 180 3D VR Example Footage Video Image quality - 24th Feb 21
How to Protect Your Positions From A Stock Market Sell-Off Using Options - 24th Feb 21
Why Isn’t Retail Demand for Silver Pushing Up Prices? - 24th Feb 21
2 Stocks That Could Win Big In The Trillion Dollar Battery War - 24th Feb 21
US Economic Trends - GDP, Inflation and Unemployment Impact on House Prices 2021 - 23rd Feb 21
Why the Sky Is Not Falling in Precious Metals - 23rd Feb 21
7 Things Every Businessman Should Know - 23rd Feb 21
For Stocks, has the “Rational Bubble” Popped? - 23rd Feb 21
Will Biden Overheat the Economy and Gold? - 23rd Feb 21
Precious Metals Under Seige? - 23rd Feb 21
US House Prices Trend Forecast Review - 23rd Feb 21
Lithium Prices Soar As Tesla, Apple And Google Fight For Supply - 23rd Feb 21
Stock Markets Discounting Post Covid Economic Boom - 22nd Feb 21
Economics Is Why Vaccination Is So Hard - 22nd Feb 21
Pivotal Session In Stocks Bull Bear Battle - 22nd Feb 21
Gold’s Downtrend: Is This Just the Beginning? - 22nd Feb 21
The Most Exciting Commodities Play Of 2021? - 22nd Feb 21
How to Test NEW and Used GPU, and Benchmark to Make sure it is Working Properly - 22nd Feb 21
US House Prices Vaccinations Indicator - 21st Feb 21
S&P 500 Correction – No Need to Hold Onto Your Hat - 21st Feb 21
Gold Setting Up Major Bottom So Could We See A Breakout Rally Begin Soon? - 21st Feb 21
Owning Real Assets Amid Surreal Financial Markets - 21st Feb 21
Great Investment Ideas For 2021 - 21st Feb 21
US House Prices Momentum Analysis - 20th Feb 21
The Most Important Chart in Housing Right Now - 20th Feb 21
Gold Is the Ultimate Reserve Asset - 20th Feb 21
Is That the S&P 500 And Gold Correction Finally? - 20th Feb 21
Technical Analysis of EUR/USD - 20th Feb 21
The Stock Market Big Picture - 19th Feb 21
Could Silver "Do a Palladium"? - 19th Feb 21
Three More Reasons We Love To Trade Options! - 19th Feb 21
Here’s What’s Eating Away at Gold - 19th Feb 21
Stock Market March Melt-Up Madness - 19th Feb 21
Land Rover Discovery Sport Extreme Ice and Snow vs Windscreen Wipers Test - 19th Feb 21
Real Reason Why Black and Asian BAME are NOT Getting Vaccinated - NHS Covid-19 Vaccinations - 19th Feb 21
New BNPL Regulations Leave Zilch Leading the Way - 19th Feb 21
Work From Home Inflationary House Prices BOOM! - 18th Feb 21
Why This "Excellent" Stock Market Indicator Should Be on Your Radar Screen Now - 18th Feb 21
The Commodity Cycle - 18th Feb 21
Silver Backwardation and Other Evidence of a Silver Supply Squeeze - 18th Feb 21
Why I’m Avoiding These “Bottle Rocket” Stocks Like GameStop - 18th Feb 21
S&P 500 Correction Delayed Again While Silver Runs - 18th Feb 21
Silver Prices Are About to Explode as Stars are Lining up Like Never Before! - 18th Feb 21
Cannabis, Alternative Agra, Mushrooms, and Cryptos – Everything ALT is HOT - 18th Feb 21
Crypto Mining Craze, How We Mined 6 Bitcoins with a PS4 Gaming Console - 18th Feb 21
Stock Market Trend Forecasts Analysis Review - 17th Feb 21
Vaccine Nationalism Is a Multilateral, Neocolonial Failure - 17th Feb 21
First year of a Stocks bull market, or End of a Bubble? - 17th Feb 21
5 Reasons Why People Prefer to Trade Options Over Stocks - 17th Feb 21
The Gold & Gold Stock Corrections Are Normal - 17th Feb 21
WARNING Oculus Quest 2 Update v25 BROKE My VR Headset! - 17th Feb 21
UK Covid-19 Parks PACKED During Lockdown Despite "Stay at Home" Message - Endcliffe Park Sheffield - 17th Feb 21
How to Invest in ETFs in the UK - 17th Feb 21
Real Reason Why Black and Asian Ethnic minorities are NOT Getting Vaccinated - NHS Covid-19 Vaccinations - 16th Feb 21
THE INFLATION MEGA-TREND QE4EVER! - 16th Feb 21
Gold / Silver: What This "Large Non-Confirmation" May Mean - 16th Feb 21
Major Optimism for Platinum, Silver, and Copper - 16th Feb 21
S&P 500 Correction Looming, Just as in Gold – Or Not? - 16th Feb 21
Stock Market Last pull-back before intermediate top? - 16th Feb 21
GAMESTOP MANIA BUBBLE BURSTS! Investing Newbs Pump and Dump Roller coaster Ride - 16th Feb 21
Thinking About Starting to Trade This Year? Here Are Some Things to Keep in Mind - 16th Feb 21
US House Prices Real Estate Trend Forecast Review - 15th Feb 21
Will Tesla Charge Gold With Energy? - 15th Feb 21
Feeling the Growing Heat and Tensions in Stocks? - 15th Feb 21
Morgan Stanley Warns Gasoline Industry Is About to Become Totally Worthless - 15th Feb 21
Debts Lift Gold - Precious Metal Prices Will Rise on a Deluge of Red Ink - 15th Feb 21
Platinum Begins Big Breakout Rally - 15th Feb 21
How to Change Car Battery Without Losing Power, Memory, Radio Code Settings - 15th Feb 21
Five reasons why a financial advisor can make a big difference to your small business - 15th Feb 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold and Silver Price Trend Forecast Progress Report

Commodities / Gold and Silver 2013 Jul 26, 2013 - 10:45 AM GMT

By: Peter_Degraaf

Commodities

This chart courtesy Federal Reserve Bank of St. Louis shows the US Monetary Base continues to rise exponentially. This is one of five major (along with many minor) central banks that are daily adding to the money supply of the world. This madness is causing investors to hedge against chaos and price inflation. Precious metals will benefit.


“When national debts have once accumulated to a certain degree, there is scarce, I believe a single instance of their having been fairly and completely paid. The liberation of the public revenue if it has ever been brought about at all, has always been brought about by a bankruptcy, sometimes by an avowed one but always by a real one, though frequently by a pretended payment.” … (Adam Smith).


This chart courtesy Zerohedge.com shows the wide gap that exists in US Government’s spending (red), and revenue (blue). The result is record deficits (green bars). Historically government deficits have coincided with a bull market in gold and silver, due to the fact that deficits are covered with printing press money.

This next chart courtesy Zerohedge.com shows the world's major central banks continue to inflate the combined money supply.

”No paper money system has ever lasted. All have ended in failure and disaster and this present system will end the same way. No matter what efforts are exerted on behalf of paper money.” …(D. R. Schoon).

Featured is the daily gold chart. Price broke out at $1300 on Monday and on Wednesday the breakout was being tested by the gold bears. The supporting indicators are positive (green lines). The RSI at the top of the chart shows a breakout above ‘50’ for the first time this year. A convincing close above the blue arrow sets up a target at the black arrow. Our ‘Gold Direction Indicator’ is bullish at 74%.

Featured is the weekly gold chart. The green arrows point to bottoms in the 7 – 8 week gold cycle. The purple arrows point to tops. The goal is to buy near the bottoms and take partial profits near the tops – not easy, but that is the goal. The breakout at the blue arrow revealed that this is week #4 in the latest cycle. The supporting indicators (green lines) are suggesting higher prices are ahead.

This chart courtesy AIER.ORG shows the Everyday Price Index (blue), compared to the US CPI index (green). The CPI excludes food and energy (who needs those anyway), as being too volatile. The EPI is more realistic and it is warning that price inflation is ongoing. Investors and anyone with money in the bank should add to their stash of gold and silver to protect themselves from this price inflation. Funds on deposit at banks are being eroded as price inflation exceeds interest.

“Invest in inflation; it’s the only thing that’s going up!” …(Will Rogers).


This chart courtesy Short Side of Long shows hedge funds have the least exposure to commodities since the credit crisis of 2008. From a contrarian perspective this is quite bullish for commodities and especially for silver and gold.


The gold stash in JPMorgan's vault keeps dropping. According to Zerohedge.com the total which was 3 million ounces two years ago is now down to just 436 thousand ounces.


This chart courtesy sources listed, shows the demand for gold into China via Hong Kong remains robust.


This chart courtesy Hard Assets Alliance 2013 shows the coincidence between US M2 and the price of gold. The coincidence is currently out of sync, and unless M2 should suffer a very rapid decline, (not likely), the expectation is for gold to rise above M2 again.

“To live beyond your means today is to live below them tomorrow.” ( Hans F. Sennholz).

Featured is the index that compares GDX, (the gold miners ETF), to GLD (the gold bullion ETF). Historically, whenever the miners outperformed bullion, the trend for both was upward bound. Price is in the process of breaking out at the blue arrow. A close above 0.22 will confirm the breakout and marks the July low as the bottom in the correction. The supporting indicators are positive.

Featured is the weekly silver chart. Price is trying to turn up at lateral support near 20.00. Confirmation for the bottom in the 22 month old correction will come once price breaks out at the blue arrow. The supporting indicators are oversold and ready to turn up.

"Back in the 1970s when I liked silver over gold, there was ten times as much silver above ground as there was gold. Despite that, we made twice as much money on silver as we did on gold. Now the ratio has changed. Industrial use has so depleted our silver inventory that US government now owns none. There is six times more gold above ground than silver, which is by far the scarcer of the two metals. So why is gold many times more expensive than silver? Because 99.9% of the people in the world think gold is much rarer than silver. But they are wrong, dead wrong. Sooner or later the supply/demand equation will favor silver and narrow the pricing gap between the two metals." …(Howard Ruff)


Featured is the index that compares SIL (the silver producers ETF) to GDX (the ETF made up primarily of gold producers). Despite the low silver prices, this index has favored silver producers for the past 12 months!!! This is very bullish for silver producers and for silver as well!!! The index is building a bullish chart pattern and a breakout at the blue arrow will set the stage for further gains on the part of SIL over GDX.

Happy trading!

By Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He issues a weekend report on the markets for his many subscribers. For a sample issue send him an E-mail at itiswell@cogeco.net , or visit his website at www.pdegraaf.com where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

© 2013 Copyright Peter Degraaf - All Rights Reserved

DISCLAIMER:Please do your own due diligence.  Investing involves taking risks.  I am not responsible for your investment decisions.

Peter Degraaf Archive

© 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