Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Gold Sector is On a Long-term Buy Signal - 21st Nov 17
Saudi Arabia and Israeli Alliance Targets Iran - 21st Nov 17
What History Says for Gold Stocks in 2018-2019 - 21st Nov 17
US Bond Market Operation Twist by Another Name and Method? - 21st Nov 17
Learning from Money Supply of the 1980s: The Power and Irony of “MDuh” - 20th Nov 17
Trump’s Asia Strategy, Goals and Realities - 20th Nov 17
Crude Oil – General Market Link - 20th Nov 17
Bitcoin Price Blasts Through $8,000… In Zimbabwe Tops $13,500 As Mugabe Regime Crumbles - 20th Nov 17
Stock Market More Correction Ahead? - 19th Nov 17
Universal Credits Christmas Scrooge Nightmare for Weekly Pay Recipients - 18th Nov 17
Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom - 18th Nov 17
Facebook Traders: Tech Giant + Technical Analysis = Thumbs Up - 18th Nov 17
Games Betting System For NCAA Basketball Sports Betting - Know Your Betting Limits - 18th Nov 17
Universal Credit Doomsday for Tax Credits Cash ISA Savers, Here's What to Do - 18th Nov 17
Gold Mining Stocks Fundamentals Q3 2017 - 17th Nov 17
The Social Security Inflation Lag Calendar - Partial Indexing - 17th Nov 17
Mystery of Inflation and Gold - 17th Nov 17
Stock Market Ready To Pull The Rug Out From Under You! - 17th Nov 17
Crude Oil – Gold Link in November 2017 - 17th Nov 17
Play Free Online Games and Save Money Free Virtual Online Games - 17th Nov 17
Stock Market Crash Omens & Predictions: Another Day Another Lie - 16th Nov 17
Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe - 16th Nov 17
Announcing Free Trader's Workshop: Battle-Tested Tools to Boost Your Trading Confidence - 16th Nov 17
Instructions to Stop a Dispossession Home Sale and How to Purchase Astutely at Abandonment Home - 16th Nov 17
Trump’s Asia Tour: From Old Conflicts to New Prospects - 16th Nov 17
Bonds And Stocks Will Crash Together In The Next Crisis (Meanwhile, Bond Yields Are Going Up) - 16th Nov 17
A Generational Reset That Will Redistribute Wealth to the Bottom 60% Is Near - 16th Nov 17
Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - 16th Nov 17
Gold’s Long-term Analogies - 16th Nov 17
Does Stripping Streets of ALL of their Trees Impact House Prices (Sheffield Example)? - 15th Nov 17
The Trump Administration’s IP Battle Against China - 15th Nov 17
5 Ways Bitcoin can Improve its Odds of Becoming the Future of Money - 15th Nov 17
These Headlines Say Gold is Building a Base for Something Big - 15th Nov 17

Market Oracle FREE Newsletter

Traders Workshop

Gold and Silver Price Rise Has Begun

Commodities / Gold and Silver 2016 Feb 22, 2016 - 03:14 PM GMT

By: DeviantInvestor

Commodities

The S&P 500 Index (chart below) shows a top in May 2015, a correction into August, and a deeper fall this month – February 2016.  Look out below.


The Shanghai Composite Index looks grim.

Both markets are due for a bounce with more downside thereafter.

Gold mining stocks (the GDX) have rallied over 50% since the January low.  They should correct and then rally for several years.

The chart of gold looks similar.  It has broken out of a long term downtrend, looks ready to correct, and then continue its rally past all-time highs.

The silver chart is showing the same message as gold – a bottom, breakout, possible correction, and then more rally.  Expect all-time highs in 2016 – 2017.

T-Bonds (monthly chart) look ….  well, crazy.  For a start, who lends capital to insolvent governments for 30 years at 2%?  Worse, who lends capital to insolvent governments for 10 years at negative rates?  You “benefit” from guaranteed capital destruction and are repaid in a devaluing currency?  Desperation?  Markets have gone insane?  The new normal?  Increase debt to solve an excess debt problem?  QE did not work – so the central banks must not have done enough of it?  Strange and getting stranger, or just utterly insane?

The US dollar began a furious rally in mid-2014 and peaked in March 2015.  Crude oil and commodity prices have not recovered.  Emerging markets have been hammered.  Was the rally caused by the “strong fundamentals” of the US economy, “strength” in the US job market, “excellent management” in the US government, “intelligent and healthy” economic direction from the Fed, or …  should we expect a massive correction that brings the US dollar back toward  the 70s?

From Martin Armstrong:

“… rates will rise as we move into the sovereign debt crisis, which will pick up steam in 2017 moving into 2020.”

“The Cycle of War turned up in 2014 … This will pick up also in 2017 and move into 2020.”

From Bill Holter:

“Markets all over the world are coming apart at the seams and “control” is rapidly being lost.”

“The big problem is this, the dollar is the lynchpin “reserve” currency for the entire world, what would it say if we had to move to negative rates … because NOTHING  ELSE  WORKED?”

“… you are watching the system implode upon itself…  They have started a process in motion that will not be stopped.”

Gold has no counter-party risk.  Silver has no counter-party risk.  Both have been money and a store of value for about 30 times the life of the Federal Reserve.  The intrinsic value of the dollar is approximately zero.

The process of discovering true value has begun, as indicated by the decline in the S&P, decline in the Shanghai Index, rise in gold stocks, rise in gold, and rise in silver.  Expect it to continue.

The reckoning has begun.  The ride will get bumpy.

Protect your assets.  Purchase physical gold and silver from Tom Cloud or Roxanne Lewis.

Gary Christenson

GE Christenson aka Deviant Investor If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2016 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Deviant Investor Archive

© 2005-2017 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

Catching a Falling Financial Knife