Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold At a Crossroads

Commodities / Gold and Silver 2013 Nov 28, 2013 - 04:14 PM GMT

By: Aden_Forecast

Commodities

Despite its recent weakness, the world is still viewing gold as a store of value.

Overall demand remains strong. As Eric Sprott points out, " It's staggering to think demand for gold is twice global mine production."

China is now the largest gold buyer and producer in the world. And with their economy looking better, gold continues getting a big boost from this area.


Gold's steps are your friend

For now, all is still good on the basing front. And our best bet is to keep track of the stepping stones because gold is at a crossroads.

They served us well on the way up, and they'll serve us well now.

Chart 1 shows gold's steps, along with its mega 23 month moving average.

Gold Chart: Bull + Bear Stepping Stones

Briefly, during the up moves, the C peaks generally marked the support for the future D declines.

This was a bull market check point.

The interesting point today is that the low in June near $1200 is still higher than the prior C peak in 2008.

This is technically a good sign and if $1200 holds, it'll be a bullish signal.

The C rise up to the 2011 peak was an unusually long C rise, but the D decline has also been unusually long. This means, on the downside, if the June low is clearly broken for a few days, we could then see the $1000 level tested, the 2008 prior C peak.

If so, the entire post financial crisis rise would've been erased. This would probably be the worst case scenario.

What's best to buy & keep

Many have asked if CEF and GTU are safer and better to hold than the gold and silver ETFs, like GLD and SLV.

Both CEF and GTU are Canadian gold and silver funds that are backed up by gold and silver in their funds.

This is not necessarily the case with the ETFs. Many rumors are flying that the Comex gold warehouse supplies are way down, and during the mad ETF selling last April-May-June, China was picking up a lot of that same gold and silver.

For reasons of safety, you know gold and silver are stored with CEF and GTU, but you'll never really know about the ETFs.

In today's world, safety is important, and keeping the physical metals in your possession is always best, followed by CEF and GTU.

Follow the bankers

When price manipulators take the gold price down, central banks see value and buy.

Mario Draghi, the head of the European Central Bank (ECB) said it well when he explained, " I never thought it wise to sell gold because for central banks this is a reserve of safety."

He also said it gives non-U.S. dollar countries a good protection against fluctuations of the dollar.

This is clearly a different view than Ben Bernanke's view that nobody really understands gold prices. He doesn't seem to enjoy talking about the barbarous relic, but stay tuned.

By Mary Anne & Pamela Aden

www.adenforecast.com

Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com

Aden_Forecast Archive

© 2005-2022 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