-- Posted Sunday, 15 July 2012 | | Disqus
It’s not easy to make a buck in this type of market so we’re sitting and waiting for the right setups to form mainly with the odd little trade here or there.
Hopefully that will soon change as charts are setting up nicely and could break into a trending pattern soon.
We’re also watching the beaten down miners closely but in all reality we won’t see them move until gold and silver get on the move which likely means we have the summer to accumulate the good ones we’ve had our eyes on.
All is not lost though as we have substantial weighting now in six different REIT’s which are paying anywhere from 7% to 16% so we are getting paid quite handsomely to wait out this choppy market.
The best thing is that these hefty dividend paying REIT’s are also hitting new highs in some cases and are just plain strong in others.
The summer may be better spent reaping these dividends and hitting a little white ball around or just relaxing and studying for when markets do turn nice again but time will tell.
Metals review
Gold rose 0.15% this past week but remains trapped within this triangle pattern for now with the upper end right at the key $1,600 level and the lower end at $1,560.
We look set to break it in the next week or so and of course I’m hoping for an upside breakout but I can accept it if we break lower as well.
Last week I posted the bullish looking weekly chart which has some major resistance around the $1,700 level and I don’t really expect that area to be tested until school is back in, unless of course we get some major news which is entirely possible.
As more and more markets and the like are exposed as being manipulated it’s only a matter of time until the precious metals arena is exposed as well.
Gold is being allowed to rise as we know, but it’s ascent is being slowed, especially when countries are hanging on the edge of default.
It’s the truly perilous times that gold should soar but it would only signal just how grave the situation is, so it must be moved lower.
I’m not worried though as the trend is my friend and it’s still up for gold and it’s a long-term investment on my part.
Volume in the futures market is pretty solid which is telling me there is accumulation going on while the GLD chart is showing heavier volume on the weak days which would have to point to a failed breakout coming or further downside. Luckily the futures market moves the price but we have to be ready for a move either way.
Silver rose 0.12% for the week and remains in this now very tight triangle. This should be resolved any day now, preferably to the upside. I think it will breakout higher as there have been a few failed attempts to break lower, even as recently as this past Thursday.
The $30 area is key on a longer-term chart as I showed last week on the weekly chart so while we could easily see a $2 move here in short order I don’t think we will see a major move until the $30 level is cleared whenever that may be.
I still do think we will see silver lead gold on this next major leg higher which is likely to begin this fall.
Volume in both the silver futures and silver ETF SLV is solid with the largest volume coming on Thursday as a failed breakout lower was seen. This is good as buyers stepping in strongly and they are telling me they don’t want silver to go lower.
Platinum fell 1.69% over the past week and remains in a large triangle or wedge pattern as well. We shouldn’t expect much until either level is taken out on the upside or the downside.
The range right now is $1,390 on the downside and about $1,475 on the upside.
Volume in the futures and PPLT ETF is nothing special here and I doubt it will be until we move out of this pattern.
Palladium rose 0.78% this past week and it’s hard to say much about it on this chart here. Looking back to a 3 year weekly chart (not shown) we can see that the $570 level is key support and must hold, otherwise we will likely see a move down to the next major support area at $500 or so.
Volume is not really telling me much here in the futures or PALL ETF for the time being.
We’ve got a series of lower highs and lower lows and $570 must hold now in order to break this trend.
Fundamental Review
The recent Libor scandal really isn’t much of a scandal in my opinion, nor are reports of the governments having known of the issue back in 2008. Would you really ever trust a group of 16 bankers?
If you are unsure of what Libor is you can read up on it briefly here.
Libor is set by this group daily. There is no way around the fact that these banksters/criminals would set Libor to benefit themselves. And why wouldn’t they?
What’s going to happen to them?
Nothing is the answer.
We’ll see a few figureheads resign and a nominal slap on the wrist type of fine and some phoney regulations to ensure this won’t happen again, but it will.
Don’t be fooled. Governments are in on the scam I assure you.
You just have to accept that the powers that be control the big picture economically and be aware of where they are taking us. In the smaller picture you have to understand the game and work it as they are in order to profit from the ultimate game that is the markets.
Until there is a worldwide revolution against these banksters they will remain in power.
Protest in the US or any other country will be futile as their reach touches every corner of this world in one way or another. Every single person in every single country will have to take a stand before there can be any meaningful change and that is unlikely and even if it did occur, finding one voice to unite everyone is an impossible task.
The banksters know this and have slowly expanded to where they are now one small step at a time which has masked their moves.
They have used the simple tactic of asking for a lot, then being happy getting a little. But over time this has gotten them far more than anyone could have thought even 50 years ago.
There is a solution to return global economics to the people and allow small businesses to flourish easily and unimpeded by excessive regulation and taxation.
We do have the right and power to abolish these central banks but sadly government is run by them, not the people. If we closed down every central bank in the world and allowed governments to print money themselves and not owe interest on every single dollar that was created it would immediately end this debt cycle that leads to default and bankruptcy every single time.
Alas, they know this and control most of the worlds gold. That is but one reason I implore precious metal investors to take their gold out of the machine/system.
As Rage Against The Machine says, we’ve go to “Take The Power Back”
I’m sure you’ve seen this speech by the young Victoria Grant by now but it’s worth another listen. While it’s focused on Canada, it outlines how the world is held by the short and curly’s by the central bankers who are owned by the same banks who set Libor and manipulate everything everywhere in the world economically.
This past weeks failure of PFG Best is the most recent example of how simple it is to run multi-million dollar frauds for long periods of time. This one lasted some 20 years and robbed investors of some $400 million.
Apparently it was done with little more than a scanner and a photoshop program. It’s pretty disgusting how lax regulators are if this is allowed to happen.
Try missing a mortgage payment. See how long it take for the bank to take action.
At least this time the head of the company is in custody. I hear Bernie Madoff is still rubbing elbows this summer up in the Hampton's with wall street and other elite.
Where is the justice?
I’m not advocating or condoning this but it’s coming to the point where the people need to take justice into their own hands.
We saw one bank fail this week and one the week before taking July’s total up to 2. These are all small regional banks, never the big guys.
As for gold itself and the industry that surrounds it I’ve got a few items to bring to your attention.
It’s now said that Iranians are in Turkey collecting gold for the Iranian central bank. This is most likely being done as a result of under the table transactions for oil or other natural resources.
When it hits the fan, gold is the ultimate asset to own and Iran knows this as does every other central bank in the world. Do you?
A troubled silver mine in Bolivia seems to be the next target of Evo Morales after he just nationalized a smelter in the country.
As we transform into a more electronic age we’re seeing more and more gold used up and it won’t be recycled unless prices rise substantially.
Some 320 tonnes of gold are now used up annually in the electronics industry. It’s a far cry from silvers 7,500 tonne annual use but gold only sees some 3,800 tonnes produced and recycled every year so it is a substantial amount.
The Philippines are looking to impose an additional royalty on mining of between 5% and 7%. Just another country trying to change rules and regulations making my job of investing in mining companies harder and harder.
It seems every week there is another issue in another country.
Have a great week ahead and thank you for reading.
Warren Bevan
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-- Posted Sunday, 15 July 2012 | Digg This Article
| Source: GoldSeek.com
