( 11/14/14 )
NYSE AND Nasdaq Composite Indicators are mixed and flashing warnings. The
below GDX ( Gold Miners ) ribbon chart displays a local
( 11/07/14 ) Precious
Metals spiked Up. GLD +2.81%, GDX +8.31%, NUGT 24.07% . This
is an oversold bounce in part, driven by short covering and
a slight decline in the U.S. Dollar. This next few days will
likely reveal the reality of the move.
( 10/31/14 )
Metals decline has increased itís intensity. (ie) Panic
selling is in progress. This decline in part is due to the
rise of the U. S. Dollar. The strength in the Dollar is kind
of a strange joke, as this fiat currency is almost
worthless. If you fix the dollar price when the Federal
Reserve was created and then compute that dollars current
value, you will find it to be worth 4 or 5 cents. When you
add in the fact that our glorious President has racked up
more debt, then the combined total of ALL previous
presidents, which is truly unpayable, you get a true sense
of the U. S. dollar value. Germany asked the U. S. to return
itís Gold. The U. S. was not able to do so. The Swiss are
voting next month to start purchasing tons of gold. A
successful vote should provide a strong catalyst for
Precious Metals. Add to this that there are many players
driving the Gold price down, so they can buy it on the
cheap, before they run it back Up.
Gold Crash is approaching a support level, but the long term
support is lower. The Gold chart is worth watching as as a
Big move Up is expected when it finally turns up. On a move
up GDX, GDXJ, NUGT and JNUG would be the Big gainers.
favorites in this space are RGLD and SLW which are royalty
River Boat gamblers might enjoy the 3x long and short Gold
Miners NUGT and DUST. ( These are not recommendations
of Gold bullion to U.S. Dollar
government has special taxes on Gold. (" It is considered a
collectable ") .
For this reason mining stocks (eg)
GDX, GDXJ may be preferable.
Check out "Tax
Implications Of Owning Gold"
Gold Index( $HUI) compared to the S&P500
Gold stocks have vastly outperformed all major market indices over
the past 10 years. But because Gold and Gold stocks exhibit strong
local declines, it is difficult to hold. Perhaps, market guru
Richard Russell is right when he says " Buy some Gold and forget
about it. "
( GDX) Ribbon Chart