38 thoughts on “CHART OF THE DAY

      1. MuffinTop

        Dude.. did you not just read Gary’s article? Gold is making new highs and the Miners are lagging when they should be making new highs as well.. hence the outcry from ‘moi’.

        1. Jay

          Doesn’t matter. I will still eventually win on my remaining naked DUST call-shorts even if GDX works it’s way to the single digits. Not for the feint of heart, but neither is trading this sector in general. ๐Ÿ™‚

  1. Just a BRICS in the Wall

    Most mining companies these days are overloaded in debt with no major debt relief in sight …. Bullion provides far far better financial insurance than mining stocks …. avoid mining stocks unless you like loosing your money.

      1. MuffinTop

        I know a few as well which have managed extremely well under the circumstances.
        Sandstorm Gold – which I’m not necessarily recommending – is an example of a ‘Royalty’ company which is debt free!

        Ps: Matt Badiali from Stansberry Research and John Doody are two of my favourites when it comes to investing in Gold stocks! Look into them.

        1. Just a BRICS in the Wall

          There’s a couple thousand Gold mining/explorations out there …. and the number of near debt free profitable companies can be counted on 1 hand.

    1. Simo83

      all the companies in the world have debt.

      there are companies with profit problems but that are trading at stellar valuations like TSLA, AMZN, BIOTECH and ecc ecc ecc

    1. gary Post author

      I don’t really know what to think of oil right here. I was expecting it to be making higher highs by now but instead it’s dropped back below the 10 day moving average and energy stocks are clearly in a downtrend.

  2. GoldenWizard

    There are plenty of Gold miners in Canada making money, such as Detour Gold and Kirkland Lake Gold. Another miner which will be great to add is Pretium Resources, they will start producing in 2017. Spot price for Gold in Canadian Dollar is over $1500 per ounce, these Canadian Miners are performing well.

    1. Just a BRICS in the Wall

      If you believe the AISC (all In Sustaining Costs) published by the mining co’s, you’d think they’d all be wildly profitable and paying big dividends …. but in fact Detour Gold reported a $15.9 Million loss Q2 2015 …. Kirkland looks to be in better financial condition than Detour, but I’d feel safer in Bullion.

  3. zkotpen

    Gary,

    Wouldn’t we be looking at an end to the rally with next week’s non-farm payrolls? Based on the weekly data reports for September, the report should show strength.

    1. gary Post author

      If the miners don’t show me something soon then I’m going to get an itchy trigger finger once gold reaches 1200.

      1. zkotpen

        Yeah… looks like gold is about 2% from the August high, GDX about 15% from it. I know the miners are usually 2-3x more volatile than gold… but 7x?? That’s a lot!

  4. zkotpen

    Gary,

    Thanks for your response on the long term CRB cycles last Friday.

    The word that popped into my head from your mention of the 1970s was “stagflation” — high interest rates combined with high unemployment and high inflation. POG went up. The opposite of what’s happening since 2008 (CRB) and 2011 (PM’s), on all four counts.

    I do see that the prior CRB cycle, 1933-68, was nearly a split: 18 years bull, then 17 years bear market. The previous cycle, 1897-1933 was clearly right translated, as you suggest. For the CRB supercycle bull, 1897-2008, I see a clear 5 waves up, with wave 3 subdividing, and it is the longest and the strongest.

    Before that, there was a supercycle bear that dates at least from the 18th century to 1897…

  5. JohnWilkinson

    Gold remains in a bear market, and all the oscillations are just wiggles on the chart–getting smaller as the months roll by. True, gold did not break down after the FED meeting. That offers some encouragement to gold. Also, some smart people–genuinely smart people who think about things rather than believing in things–suspect the FED’s next move is to return to balance sheet expansion. Whether that happens or not, one thing is clear: the FED is bluffing about raising interest rates. It’s not going to happen.

    You have to be concerned however that gold has done so poorly all through the time that interest rates have fallen further, and many central banks have eased, or, combined easier policies with expansionary fiscal policy.

    The best thing you can say about Gold is that it’s been great for those who bought in 2002. Gold held the bulk of the gains since that time: it hasn’t given it up unlike many other commodities.

    However, my forecast is that gold will re-test the 2008 crisis lows somewhere between 750-800.

  6. William

    Just to emphasize, the “outside reversal” weekly candle stick + a breakout on weekly H&S pattern + a week-on-week increase in volume = a very potent selling force!!!

    Hope you are making good use of this!

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