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

GoldSeek Radio: Ralph Acampora and CEO Niko Cacos, and Chris Waltzek

The Real Cost of Low-Fee Funds
By: John Mauldin

Equity Management Associates: Reversion to mean would send monetary metals soaring
By: Chris Powell

By: Trey Reik

The Coming Inflation Threat: The Worst Of Both Worlds
By: Charles Hugh Smith

SPX/Gold, 30yr Yields and Yield Curve - Amigos 1, 2 and 3 Updated
By: Gary Tanashian

Gold Seeker Weekly Wrap-Up: Gold and Silver Find Slight Gains on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 10 19 2018
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - October 19, 2018

Gold Is Becoming Cool Again
By: John Rubino


GoldSeek Web

Let's Talk About Gold

 -- Published: Monday, 20 July 2015 | Print  | Disqus 

By Gary Tanashian

For what seems like forever we have been mechanical in managing the precious metals because they have been bearish; period. This has been based on short and long-term technical indications and incomplete macro fundamentals. Gary the robot has had no difficulty whatsoever holding this stance despite Gary the human’s unwavering view that the value of gold is in its insurance and long-term retained value qualities.

The precious metals took a hard bearish turn last week and that is the best news I have seen in a while because the complex has been locked below important resistance (failed support) for some time now and the sector usually completes its severe corrections and bear markets with a bang, not a quiet whimper.

We have noted that despite a 4 year bear market there have been too many perma-bulls doing what they always seem to do in dispensing reasons (rationalizations) for the hopeful herds (which had not yet been exterminated) to be bullish. China demand, Indian Wedding Season (AKA the “Love Trade”) and world-wide gold jewelry consumption have been put forth as bullish fundamentals.

Indeed, one new promotion is that gold as part of the ‘fear trade’ is a thing of the past. Those who consider gold as insurance against negative financial events are merely anachronistic has-beens says this new school. Well, today the fear sits squarely in the belly’s of those who bought this promotion [edit: this Monday morning, with media-fueled negative hype on full blast, it settles deeper still].

Gold has been contrary to what has been going on in the US and now, some global stock markets; namely gold has been bearish and risk ‘OFF’ while stocks have been bullish and risk ‘ON’. That is in large part due to the fact that commodities have been bearish as well and there has been no overt inflation problem – according to financial markets (conveniently disregarding the creeping cost increases happening throughout the services economy) – and so an ‘inflation trade’ has not been a component in the global bull atmosphere.

This is all about paper and the value that market participants currently see in that paper. Stock certificates, mortgage documents, the debt of distressed and non-distressed entities alike… it’s all good because risk is ‘ON’ and it will remain good as long as risk remains ‘ON’.

Gold is dropping hard. We have a measurement of 960 by an old weekly chart we used to review back when gold was attempting (and ultimately failing) to break some important upside parameters. A failure of those parameters loaded some downside targets that includes the big support shelf from 2008-2009 around 1000 +/-.

What I think may be happening is that risk ‘OFF’ is blowing off to the downside even as risk ‘ON’ either tops out or prepares to blow off to the upside. Fantasies about gold being able to rally due to US employment growth (and inflation), European economic growth and love having broken out in China and India are being proven wrong.

There are no easy answers and those put forth to date are proven wrong. Gold holds a mythical spell on humans because humans posses fear and greed in great amounts. I once again hearken back to people asking me “how’s your gold letter going?” and my answer that seemed to fall on deaf ears… “it’s not a gold letter.”

It was a letter that was super bullish on gold at its launch in Q4 2008. It is written by a person who values gold to this day, 4 years into a bear market as much as he did in 2008. But the obsession with gold is a human thing, or a human history thing. There is no denying gold’s historic role as money and medium of exchange. It seems to have been hard wired into the collective human consciousness.

Are we in a great new era, the one that severs the ties to this historic relationship and sets us on a course to digital mediums of exchange amidst government spending and debt accumulation with no bounds? Well, talk about promotions.

Gold is in a bear market because greed and naïveté’ with respect to modern policy making are in bull markets. We sit, wait and understand who we are, who Janet Yellen is, who Mario Draghi is, who China Central Planning, BoJ, BoC, RBoA are. We understand that gold is an instrument outside the system and right now it is the System über alles. Long-term gold bulls need ultimate patience and perspective on all of this.

The above was instigated by last week’s bearish activity in the precious metals complex, which was significant in finally breaking to new depths, and an email I received from a website reader pointing to some gold-bearish material in the financial media.

We will continue to manage the precious metals, and with the hard down last week we will tighten the focus in weekend reports and in updates at the website. While the lowest targets are still quite a ways off, it is time to be managing closely.

For now however, let’s address the reader’s email. This gentleman thought I would find the following headlines at the Wall Street Journal interesting. He is right. These are the first two articles under the ‘Commodities’ menu at the WSJ as of Saturday, July 18.

From a contrarian’s perspective, this is the kind of stuff that is going to help empty the still over-bullish side of the boat (after it capsizes) and temporarily break the gold obsession that is hard wired into so many people (it’s just a pet rock, after all). Here we have to remember that when the MSM trumpets, it is selling headlines. Who buys the headlines? The public. Who is always wrong at important turning points? The public.


We will move forward through what is finally becoming an interesting time in the precious metals. Extremis could well be setting in for the sector, as noted at Biiwii last week. We have worked long and hard for this opportunity.

NFTRH 352 then went on to update the nuts and bolts of the technical, macro fundamental and sentiment situations. and

| Digg This Article
 -- Published: Monday, 20 July 2015 | 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 - 2018 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, its affiliates or advertisers. 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, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.