Yesterday, a friend who lives in the same building that I do called me and said, “There’s a guest on CNBC who thinks the bull market in gold is over. You should watch it.”
“What for,” I replied. I am not interested in listening to so-called “experts,” who know so little about the gold market and the causes for the bull market that they can foolishly take such a position. Only a fool or someone with an “agenda” would take this position while the Fed is creating $85 billion a month in QE to hold down interest rates and support the banks. Generally speaking, a market in motion stays in motion. The “motion” is UP, for the last 12 years. The fat lady hasn’t sung yet – in fact we’re not even into the third act of the epic Golden Opera yet.
Man, it’s tough to write every day. And that’s why I love Richard Russell and Jim Sinclair. Ranting Andy and Bill Holter have my respect too. You should try coming up with something interesting and worthwhile to write about, every day, and see how difficult it is. People who write this often are inspired!
Every time gold is UP, the headline reads “gold up on short-covering, and bargain hunting.” That’s true I suppose, if you are a “trader.” Most, if not all of you are holders of physical gold; long-term oriented holders of gold. These daily short-term up and down movements are just a part of the game that the bullion banks and hedge funds play, a zero-sum game, as for every winner there is a loser who took the opposite side of the trade. We don’t care! Most of you are NOT traders. And if you are, the last place on earth I would try and trade is the gold and silver market. That said, Ranting Andy says, “A cave man could trade this market and I would be VERY rich if I was given OPM to trade on the COMEX.”
He would love to trade it – with other people’s money. The manipulation patterns are easy to spot and repeat almost every day. But most of us own physicals and don’t worry about the day-to-day noise. Honestly, I can’t remember a time when the fundamentals pointed so clearly toward strongly-rising prices; and the wait won’t be too long.