Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Precious metals marketplace OneGold extends a rare offer of Gold and Silver at spot price
By: OneGold

Ira Epstein's Metals Video 1 16 2019
By: Ira Epstein

Goldcorp-Newmont deal points to more M and A
By: Richard (Rick) Mills

Silver – 1993 and 2001 Repeat
By: Gary Christenson

The Newmont-Goldcorp Deal Is Positive News for Gold Mining
By: Frank Holmes

Northern Vertex Mining Presents a Video of the Moss Gold Mine, NW Arizona, USA
By: Northern Vertex Mining Corp.

Gold Holds Steady Near $1,300/oz As Geopolitical Risks Including Brexit Loom Large
By: GoldCore

Gold Seeker Closing Report: Gold and Silver End Slightly Lower in Mixed Trade
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 1 15 2019
By: Ira Epstein

Gold and Silver 2019 Price Forecast
By: Craig Hemke


GoldSeek Web

June Lows Often Mark the Beginning of a Long Rally in Gold and Silver.

 -- Published: Thursday, 19 June 2014 | Print  | Disqus 

This chart courtesy  shows the historical trend of the price of gold, based on 30 years of data.  Once the doldrums of June and July are out of the way, price usually rises until January-February.  The challenge is to catch the June lows.


This chart courtesy Federal Reserve Bank of St. Louis shows the total amount of debt in the USA is now 60 trillion dollars.  This cannot possibly be paid off, and it will be inflated away.  Gold and silver will benefit.

"Gold, unlike all other commodities, is a currency...and the major thrust in the demand for gold is not for jewelry. It’s not for anything other than an escape from what is perceived to be a fiat money system, paper money, that seems to be deteriorating."
-– Alan Greenspan, ex-US Federal Reserve Chairman, August 23, 2011

This chart is also courtesy Federal Reserve Bank of St. Louis.  The chart shows the Base having just topped the 4 trillion dollar level, and it does not reflect any ‘tapering’!  Instead it shows the US Monetary Base has increased from 800 billion dollars to over 4 trillion dollars in just 5 years.  This new money has inflated the bond market and the stock market, and soon a lot of this money will find its way into the precious metals sector, as price inflation motivates investors to seek protection from ‘asset destruction’. 

This chart courtesy  shows someone making a gold purchase of almost half a billion dollars early on Thursday June 19th.  Sometimes ‘they do ring a bell!’

"It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with ‘free banking.’ The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy."
-- Paul Volcker, ex Federal Reserve Chairman (in the Foreword of "The Central Banks")

This chart courtesy  shows custodial gold stored at the Bank of England fell by 755 tonnes in 2013.  This proves the demand for physical gold is greater than mine supply can meet.


This chart courtesy BLS and shows the food index at BLS has just reached a new all-time high at 252.8.  The index rose 7.7% during the past 12 months.

"Gold still represents the ultimate form of payment in the world. Fiat money in extremis is accepted by nobody. Gold is always accepted."
-- Alan Greenspan, May 20, 1999

This chart courtesy features PHYS the Sprott gold trust.  Price is breaking out at the moving averages.  A close above the green arrow will turn the trend bullish.  The 3 supporting indicators are positive. 

This chart courtesy shows TIP the bond fund that is indexed to inflation.  Investors in TIP seem to know when price inflation is on the horizon.  Historically, whenever TIP breaks out after a pullback (as now), the price of gold (top of chart) begins to rise!  Once again TIP is setting the example for gold to follow.

Featured is the weekly Franco-Nevada chart.  In January we drew attention to the fact that the 13 week exponential moving average had crossed over and risen above the 34 WEMA, thereby issuing a buy signal.  Last week price broke out above the 3 month old downtrend line, while the two moving averages remained in positive alignment.  This is a very bullish signal.  The supporting indicators (SIs) are positive, including the A/D line which turned up even before the January buy signal.  Since FNV is a royalty company, it is useful as a leading indicator for the mining industry.

"Governments lie; bankers lie; even auditors sometimes lie: gold tells the truth."
-- Lord Rees Mogg, economist & former editor of The Times

This chart courtesy shows GDX the gold and silver producers ETF has broken out at the downtrend lines.  The supporting indicators are positive, including the important A/D line.  We await the breakout at the green arrow.  This will confirm an ‘inverted head and shoulders’ pattern, with a target at 36!

This chart courtesy shows the US dollar ETF is dropping below the most recent support line.  The supporting indicators are negative.  Almost always, the US dollar index moves in the opposite direction to gold and silver.

"Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services."
-- Ben Bernanke, the former Chairman of the Board of Governors of the Federal Reserve Bank of the United States, in a speech he made on November 21, 2002 before the National Economists Club in Washington, D.C.


This chart courtesy  shows 'managed money' (mostly hedge funds), is short the largest number of contracts since at least 2006.  These positions have to be covered, when the price of silver begins to rise.  From a contrarian perspective this is a very bullish chart.

Featured is PSLV the Sprott silver trust.  Price is breaking out at the bullish falling wedge pattern.  A close above the green arrow will turn the trend bullish.  The 3 supporting indicators are positive.  The premium over bullion is a positive +2.0%.

Our thanks to for the quotes used in this article.

DISCLAIMER:  Please do your own due diligence.  Peter Degraaf is NOT responsible for your trading decisions.

Peter Degraaf is an online stock trader with over 50 years of investing experience.  He produces a daily alert for his many subscribers.  To view a recent report please visit or drop him a line at

| Digg This Article
 -- Published: Thursday, 19 June 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.