This article looks at 7 reasons why gold and silver should experience further weakness over the days/weeks ahead. (Words: 206; Charts: 5)
So says Katchum (http://katchum.blogspot.ca) in edited excerpts from his original article* entitled The Current Status on Precious Metals.
Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com(A site for sore eyes and inquisitive minds) andwww.munKNEE.com (Your Key to Making Money!), may have further edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.
Katchum goes on to say, in part:
1. Paulson has sold almost half of his gold ETF GLD. This may be bearish for gold going forward.
2. China lost interest in gold during the past months.
3. LCNS positions have gone back up, so that means there are still a lot of people with interest to get the silver price down.
4. The declining lease rates are indicating that weaker prices are still to come.
5. The silver stock at the COMEX has been rising, which indicates to me a further decline in prices is probable.
6. Premiums for Sprott PSLV have dropped indicating a disinterest in silver.
7. Since September 2012, the gold and silver miners have been greatly underperforming the gold and silver price, which indicates further weakness in precious metals to come.
With all the above indicators going downwards I’m not that bullish on precious metals at this moment.
I view the current market weakness in gold, coupled with the pullback in trader positions, as a shorting opportunity which is strong in terms of reward vs. risk. I have come to that conclusion by questioning the assumptions that many make about it, isolating its fundamental drivers and providing a trading recommendation as to where I believe the price is headed in the future. Let me share my analyses with you. (Words: 1440; Charts: 4; Tables: 1)
Gold again dropped below its key support line of $1,690 during intraday trading on Friday, December 7th (going as low as $1,684.10 vs. a low of $1,687.10 on Thursday and $1,686.00 on Wednesday) but closed out the day at $1,705.20 ( vs. a $1,700.50 close on Thursday and $1,697.70 Wednesday. At first glance it looks like we may have seen the worst of this correction but only time will tell so we will continue to watch it closely here in the days ahead.
There is a substantial debate about what asset, if any, gold price relates to or responds to….We think the most logical factor in its price as a form of money would be the ratio of the currency in circulation versus the amount of gold that could be associated with that currency…We have heard some strong opinions to the contrary…that perhaps some other assets other than currency in circulation could be used to explain gold price behavior, and therefore provide some gauge of over and under valuation in the market price. [We look at 14 different assets below.] Words: 586
As I see it, worsening financial crises lead initially to lower gold prices which are followed by some form of government intervention to alleviate the crises and that action, in turn, eventually results in renewed appreciation in the price of gold. The basic steps in such a transition are really quite straightforward. (Words: 477; Charts: 2)
My previous article on gold & silver went viral with almost 30,000 reads on munKNEE.com alone and continues to be read by hundreds of goldbugs daily. Below is an updated chart and analysis suggesting that gold & silver have further to drop before they go parabolic. Take a look and share it with friends.
Gold & silver have pulled back over the past two weeks after both faced strong resistance from the upper horizontal line of their respective trading ranges [and continue to flucuate within their] 12-month Trading Ranges of $1,540 – $1,800 and $26.50 – $36 respectively. HUI and XAU levels have pulled back and are testing the lower boundary of their rising wedges [but look likely to move upwards within their respective wedges (530 – 570 for the HUI and 200 – 215 for the XAU) before moving higher]. Check out my technical analysis below for details.
Have you been too busy to stay informed about the unusual developments in gold this week? Not to worry! Here are 5 of the “best of the best” articles selected from 100s posted on the internet this week. Each article has been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy!
We live very busy lives these days and, as such, often don’t have the time to stay informed about developments on the financial, economic and investment scenes as they develop each day. Here are just 10 of the “best of the best” articles that were selected from the 100s posted on the internet this past week. Each article has been edited for the sake of clarity and brevity to ensure you a fast and easy read. Enjoy!
The arguments for gold to rise dramatically are well known and highly publicized. The arguments for gold to remain flat or to decline are minimally discussed and generally attacked vigorously when raised. [I do just that in this article and the conclusions will not be liked by the goldbugs.] Words: 285
All thing considered, it seems clear that the long-term real returns of gold have been poor (compared to stocks and bonds), and I see no reason to expect long-term price appreciation for gold to be above inflation. In fact, as with any non-income producing asset, it would be unreasonable to expect gold to provide significant positive real returns over an indefinite period of time…I would argue that buying gold is a short-term gamble that is completely dependent on the unpredictable vagaries of perception, market psychology and the “greater fool” theory…While it is true that gold can be a good short-term trade and offer superior returns over shorter periods (as has been the case in recent years) I believe that stocks will continue to substantially outperform gold over time. [Let me explain these less than popular conclusions further.] Words: 1258