Gold: Past, Present, and Future

quiettrucker12 said:Gold is the boss here. Silver tends to track the commodity index a bit closer—back in May 2011, both silver and the CRB/commodity indices hit their peaks at the exact same time. There’s this theory floating around that a silver bull market always stays way ahead of gold's, but honestly, I don't buy it. My take? The longer the bull market drags on, the less silver acts like an industrial metal and the more it just mimics gold instead of those commodity indexes.

😁

After the correction, gold needed some breathing room to find its footing. As we predicted, it went into a consolidation phase. That sideways grind lasted about a year, carving out a downward trendline, and now gold has finally broken out above it—though it could have just as easily broken lower.

👏

Silver entered its bull market after gold did...
And silver's consolidation period lasted nearly a year and a half—which is longer than gold's...
Both gold and silver are breaking through key resistance levels; the sentiment is becoming increasingly bullish.😉
If there is any truth to the rumors of central bank intervention this September... things are going to move up aggressively.😍

The broader picture is actually quite grim—I'm looking at the data coming out of China:
European Union exports dropped by 16.2% in July.
Exports to Italy fell by 26.6% (year-over-year).
Iron ore prices plummeted 33% over the last month alone.
The issues within the European Union remain unresolved—not a single one of them.
Things aren't exactly rosy for Americans either—with elections approaching, if they intend to help Obama secure a win, they'll need to be hitting "Ctrl+P" on those stimulus measures pretty hard.😂

analogharbor44 said:How much of a drop are we looking at today? Maybe 20-30 bucks?

No way! I was born to trade! 😵😵😵

dustyheron5 said:👏

Silver entered its bull market after gold did...
And silver's consolidation period lasted nearly a year and a half—which is longer than gold's...
Both gold and silver are breaking through key resistance levels; the sentiment is becoming increasingly bullish.😉
If there is any truth to the rumors of central bank intervention this September... things are going to move up aggressively.😍

The broader picture is actually quite grim—I'm looking at the data coming out of China:
European Union exports dropped by 16.2% in July.
Exports to Italy fell by 26.6% (year-over-year).
Iron ore prices plummeted 33% over the last month alone.
The issues within the European Union remain unresolved—not a single one of them.
Things aren't exactly rosy for Americans either—with elections approaching, if they intend to help Obama secure a win, they'll need to be hitting "Ctrl+P" on those stimulus measures pretty hard.😂

Then why wasn't silver at $48 back then? Does that mean this consolidation phase keeps going until it hits $48 again?

dustyheron5 said:👏

Silver entered its bull market after gold did...
And silver's consolidation period lasted nearly a year and a half—which is longer than gold's...
Both gold and silver are breaking through key resistance levels; the sentiment is becoming increasingly bullish.😉
If there is any truth to the rumors of central bank intervention this September... things are going to move up aggressively.😍

The broader picture is actually quite grim—I'm looking at the data coming out of China:
European Union exports dropped by 16.2% in July.
Exports to Italy fell by 26.6% (year-over-year).
Iron ore prices plummeted 33% over the last month alone.
The issues within the European Union remain unresolved—not a single one of them.
Things aren't exactly rosy for Americans either—with elections approaching, if they intend to help Obama secure a win, they'll need to be hitting "Ctrl+P" on those stimulus measures pretty hard.😂

The fact that sentiment is turning bullish—combined with a potential rally in the Dollar (though a peaking Dollar over the next month or two doesn't necessarily mean a roadblock for precious metals)—is basically the only data point right now that isn't working in our favor. But look, bullish sentiment is just a byproduct of a rally; that’s just how bull markets work. Usually, everything revolves around the 200-day moving average. Prices stretch a bit above that line, traders snap in to take profits, and then the cycle repeats. That constant tug-of-war is actually why bull markets can grind along for so long without going parabolic.

Silver went parabolic because Gold suddenly spiked and surged well past its 200-day moving average. Since Silver tends to shadow Gold but with more leverage, it followed suit—shooting way past its own 200-day average (hitting $28 before skyrocketing to $48!). Naturally, once it gets that extended, traders jump in to lock in gains or rotate back into Gold.

analogharbor44 said:Then why wasn't silver at $48 back then? Does that mean this consolidation phase keeps going until it hits $48 again?

Basically, yeah. It’ll likely drag on for another six months, maybe longer if gold decides to break past $1,920. But look at this:

http://stockcharts.com/h-sc/ui?s=$SILVER&p=W&yr=3&mn=0&dy=0&id=p53037001376

If you connect the dots on that chart, you get a downward trendline that just got snapped. That means there's a legitimate shot at testing the previous highs. Even so, don't expect us to actually blow past that peak until mid-year or maybe summer 2013.

analogharbor44 said:Then why wasn't silver at $48 back then? Does that mean this consolidation phase keeps going until it hits $48 again?

You're right—it actually went above $48 once. Regarding consolidation—that refers to the price floor established during a decline, lasting until the downward trend finally breaks...

Here is an explanation for the colleague asking why silver prices are climbing:
Bill Murphy:
*Then today I received a phone call from a sophisticated Gold/silver trader. This person asked me about a client who was having trouble getting his $5 million silver order delivered. He is getting one excuse after another why he is not getting his physical silver. The question to me was about the manufacturing dates these days for silver being delivered … meaning that what is delivered are current date bars … because there just isn’t any silver around in size to be delivered. SMOKE is everywhere. It is billowing and is advertising the coming silver fire.

😉

As for silver, its parabolic move happened much earlier than gold's (hitting $1,923)—primarily because silver is most sensitive to inflation expectations. Once the QE2 program ended, silver stopped rising and began its descent...
Now, those inflation expectations are back in play—rising food costs, monetary stimulus from China, the European Union, and potentially the United States—therefore, silver has no choice but to rise...😍

Bill Gross

Gross: It looks like Draghi is ready to cut massive checks—we’re talking 2-3 year commitments—to support the periphery. This is highly reflationary. My move? Buy gold, TIPS, and real assets.

Man, we really should've pulled the trigger on platinum about a month ago. 🙂

1354 dollars... hitting an all-time high.
Which means 🙂

Check this out...

http://www.advicetrade.com/ewreport/...201209055.html

I wonder what Mario is going to dish out today. 🙂🙂🙂

It doesn’t matter what they say; it’s about what they actually do.
The only thing they can really do is dump hundreds of billions of dollars into a plan to "save" Spain.
We all know how that ends—it’ll be just like the mess they made trying to "save" Greece.

Anthony Evans78 said:It doesn’t matter what they say; it’s about what they actually do.
The only thing they can really do is dump hundreds of billions of dollars into a plan to "save" Spain.
We all know how that ends—it’ll be just like the mess they made trying to "save" Greece.

So here’s the deal: they're saying they'll start buying up bonds. Did Germany even give them the green light yet?

I wouldn't go that far.
Actually, it doesn't even matter. All that matters is that the printing presses keep running. 🙂

It’s basically the same energy as when Vujčić tells Americans not to bother buying real estate 🤣 😂

http://timesofindia.indiatimes.com/b...w/16290720.cms

The tension between the Federal Reserve and the Fed's German counterparts has finally boiled over. Draghi is going to print money whenever he feels like it—effectively ignoring both his mandate and European Union agreements—while the opposition argues this path is a one-way ticket to ruin for Germany.
As for gold, I'm feeling incredibly bullish. 🙂
Regarding the European Union economy? We’re looking at a Greece-style meltdown within a year or two.

Ha, ha ha, look at us—officially branded as a cult by everyone else!

http://www.youtube.com/watch?v=m9wGr...&feature=share

Apparently, every single central bank on the planet is running some kind of cult operation—except for ours, obviously.

Anthony Evans78 said:The tension between the Federal Reserve and the Fed's German counterparts has finally boiled over. Draghi is going to print money whenever he feels like it—effectively ignoring both his mandate and European Union agreements—while the opposition argues this path is a one-way ticket to ruin for Germany.
As for gold, I'm feeling incredibly bullish. 🙂
Regarding the European Union economy? We’re looking at a Greece-style meltdown within a year or two.

I’ve been keeping a close eye on that exact situation. Germany talked a big game and fought it tooth and nail, but in the end, they just folded. I'm feeling a little 😕

Nancy is such a complete airhead, it’s actually ridiculous.
I just watched that clip where she gets into it with the weatherman—honestly, I couldn't believe my eyes.

Then I scrolled down to the comments and realized everyone else feels the exact same way. LOL

When it comes to Merkel, Germany has blinked, but the Federal Reserve hasn't budged an inch. Sadly, the Federal Reserve can't actually do much besides threaten to walk away from the dollar 🙂
Meanwhile, the Austrians and the Finns are claiming they're done footing the bill for everyone else. Now... is that just talk, or will they actually pull the trigger? We'll see.