22 thoughts on “CHARTS OF THE DAY

  1. bob davis

    I see the equity markets are still strong, and the dollar hasn’t fallen, putting pressure on gold. There was a move up to $1222 caused by China lowering rates. World economies still falling into a deflationary spiral, nothing changed since last week, yep sure the odd bounce here and there. Those evil bears……..

    1. gary Post author

      I don’t really see the deflationary scenario people keep talking about. As a matter of fact I’m seeing massive inflation, but it’s mostly focusing in global stock markets. If stock markets start to fall then we can open a conversation about deflation.

      1. Bill

        Correct G.ary

        Let’s see how much deflation we’ve experienced in the last year for things we need to live our everyday lives.

        Beef and veal +22.5%

        Ground beef +21.0%

        Steaks +14.9%

        Pork +7.4%

        Ham +11.5%

        Whole Chicken +6.1%

        Fresh Fish +3.5%

        Eggs +8.2%

        Cheese +7.8%

        Fresh Vegetables +4.3%

        Lettuce +12.2%

        Tomatoes +9.6%

        Coffee +6.7%

        Butter +19.5%

        Restaurant food +3.1%

        Housing +2.9%

        Hotels +7.6%

        Owners Equivalent Rent +2.6%

        Homeowners Insurance +5.6%

        Electricity +2.5%

        Water & Sewer +5.5%

        Home Repairs +4.4%

        Footwear +2.6%

        Car Insurance +5.0%

        Parking Fees & Tolls +2.3%

        Medicinal Drugs +4.2%

        Prescription Drugs +5.6%

        Hospital Services +4.3%

        Veterinarian Services +3.2%

        Sporting Events +3.6%

        Newspapers & Magazines +4.6%

        College Tuition +3.6%

        Educational Books & Supplies +6.5%

        Grade School & High School Tuition +4.0%

        Childcare & Nursery School +3.0%

        Postage +3.6%

        Cigarettes +2.5%

        Financial Services +5.7%

        Tax Return Prep +9.3%

  2. ken

    Optimists, both inside and outside Europe, often cite the example of Japan. It fell into deflation in the late-1990s, with unpleasant but not apocalyptic consequences for both itself and the world economy. But the euro zone poses far greater risks. Unlike Japan, the euro zone is not an isolated case: from China to America inflation is worryingly low, and slipping. And, unlike Japan, which has a homogenous, stoic society, the euro area cannot hang together through years of economic sclerosis and falling prices. As debt burdens soar from Italy to Greece, investors will take fright, populist politicians will gain ground, and—sooner rather than later—the euro will collapse.

  3. Bob UK

    I think gold and silver are going down as Gary suggests. I think we will see a lower low below 1130 well before March is out personally.

    I think we are about to get Gary’s crack-up boom in the conventional stocks. Not sure anymore whether we will get a dip / correction first or not personally, but I will bow to Gary’s greater expertise on the matter.

  4. K.Gee

    Deflation is here in europe. Gary is in denial and maybe why he keeps getting the gold call wrong. We’re going to $1000 on gold. We should get the rally once confidence in government disappears through sovereign defaults but the paper rout will take us to $1000 first.

    1. gary Post author

      What do you mean getting the gold call wrong? I’ve been expecting for quite some time now that gold would eventually hit $1000. In my last article I even said that the bear scenario was still the most likely one and that’s what is playing out so far.

    2. stephan

      ……we should get the rally once confidence in government disappears through sovereign defaults……Martin Armstrong would agree with you.

  5. Jonathan

    Some people say Gary’s great, others say he makes bad calls. He probably should publish his trades, TimerTrac would be a good choice. It doesn’t have to be in real time because that would be unfair to paid subscribers, but it’s verified by a 3rd party. I know some websites subscribe to TimerTrac for anybody to view, so people can quickly see how they perform and what their styles look like, and decide if they want to join. And that would end any disagreement.

  6. Gary

    Gary, if the move in gold breaks 1220 and it heads lower into April/May, is this lower leg the FINAL lower leg? Said another way, is the low coming soon THE bottom in your estimatation?

  7. Bob UK

    I think gold is just going to grind down now. The conventional markets is where it is at but, even there, you have to wonder how much higher they can go.

    1. Bob UK

      Fresnillo seems to be heading down. Tends to be a bit of a bell-weather regarding the precious metals IMPO.

      1. Bob UK

        Fresnillo down further in London due to a poor 2014 – I suspect this wil be true for most miners nd that miners will now roll over and head much lower, as will gold and silver.

  8. Solsson

    The Bear is running out of steam! Give it another week or two and the Bull wins. This means NO new LOW this summer 🙂

    1. bob davis

      I guess if you write NO and LOW in capitals it gives your prediction more validity!!

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