Gold And Silver Bullion Top 2011
We issued several warnings in 2011 and strongly advised our subscribers to take profits in Gold and silver bullion. We officially closed all our positions in Palladium and 75% of positions in Gold and Silver. In doing so we got out right at the top and are now in a position to buy Gold at rock bottom prices. Effectively we will be able to double our holdings.
Gold has still not issued a strong sell signal on the daily or weekly charts, but it’s getting dangerously close to doing so. In terms of our indicators, Gold is now trading in the extremely overbought ranges. We have never in our trading lives come across a market no matter how strong it appears to be that did not experience several strong corrections during its bullish run-up. Gold is not going to be the exception to this rule; at the very least it is going to experience a medium to strong correction and or an extended period of consolidation.
The Gold bull is not over, but there are strong signs that it’s getting ready to take a break. Potentially Gold could surge to the 2000 ranges before putting in a top. We suspect that a surge to the 1950-2000 ranges will generate a series of massive negative divergence signals and potentially a very strong sell signal in the process. Market Update Sept 3, 2011
Gold And Silver Bullion Trends
Now is not a good time to buy any precious metal. We suspect that Silver could trade down to the $25-$30 ranges before a bottom takes hold. At those prices Silver will make for a good buy; if by some chance it should dip to 20 or below it will become a screaming buy. Aug 26, 2011
The strong reaction from the commodities sector in general clearly suggests that some sort of top is in place. A rebound should be expected over the next 1-2 weeks and investors should use this to close out half their positions in Gold bullion, Palladium bullion and Silver bullion. Continue trying to get rid of your silver in the $40-45 ranges. Market Update May 24, 2011
In the precious metal’s sector, we are already witnessing signs of a blow-up top. Absolutely, nobody is buying silver at above 40 dollars because they are afraid of inflation. Forget it, the only reason they are jumping in is that they want to speculate. They are mad they missed the ride so far, and they are determined that they are going to get a piece of the action.
Another sign of a blow-off top is a market mounting a mediocre pull back and then rallying very strongly from there. This is precisely what took place in the silver and gold markets; they experienced a very tiny pull back and then raced upwards. Market update May 4, 2011
New comments on Gold Crash, Sept 30, 2016
What we stated came to pass, those that listened to us were able to bank gains north of 800% and then redeploy those gains into the most hated bull market of all time. We also stated at the same time that the Dollar would take off and that the Euro would crash and that has come to pass. Until Gold can close above 1365 on a monthly basis, it has no chance in hell of breaking out to new highs. One could state the gold crash has come to pass when one considers that it dropped all the way from above 1850 to below 1200 and for years after that it has done absolutely nothing. From a long term perspective though, long bases eventually lead to strong breakouts.
Gold Crash Top Update Dec 2017
Gold bottomed in 2002, and it took nine years for its trade to a high of roughly $1900 (September 2011). Contrast that to Bitcoin, in less than 1/3rd of the amount of time it is showing gains of more than 11,000%. It took nine years for Gold to show gains of roughly 700% and Gold has given up a substantial portion of those gains.
We bailed out of Gold in 2011 for two reasons:
- Gold was trading in the extremely overbought ranges, and the Gold Bug Camp could not contain their glee; they thought the sky was the limit. Instead, they found out that the Ground was a lot closer.
- The masses were not embracing Gold, and they refused to treat or view it as a currency.
Only those from the hard money camp continued to believe that Gold was a currency, but sadly their numbers are dwindling with the passage of each day. The masses view Bitcoin as cool and secure; a feat Gold has struggled to achieve and is not likely to achieve in the foreseeable future. Whether this is true or not, hardly matters for when it comes to investing, perceptions are all that matter.
Does this mean the precious metals sector is dead?
Well, that depends on what one means by dead. Gold has performed abysmally since (it topped out) 2011. The money supply soared, and Gold tanked, not exactly a good sign. In doing the opposite of what was expected from it, Gold cemented the view that it was an ancient relic that has no place in today’s monetary system. We are speaking in terms of Mass Perception. What we think, matters not; we follow trends, and we don’t waste time trying to look at things from a personal vantage point.
There are many reasons for Gold’s underperformance after 2011; one of them was the “velocity of the money supply” which all but stalled after 2011. However, the masses don’t waste time on details like this. They look for simple cause and effect answers. Money supply soared, Gold did nothing, and hence Gold is a waste of time. A bit simplistic but that’s the mass mindset for you. However, looking forward some factors could limit Gold’s lustre. BitCoin Has Done What Precious Metals Never Could
Gold Market Update Aug 2019
The Gold bugs and Gold experts must be going through hell; almost seven years later and the Gold Bull Market refuses to follow the path these individuals have laid out for it. Proclamation after proclamation has failed, and the detested dollar much to their angst and surprise has continued to trend higher. Inflation has not taken off as they expected; well at least based on the distorted figures the government issues. The masses believe this data is real and that is all that matters in the end.
Truth or a lie is based on a perception and perceptions are driven by emotions, which means that everything is up for debate. What holds true today might not hold true tomorrow or what is deemed valid today might be deemed as rubbish tomorrow. The same principle applies to the Gold Bull Market; when the majority embrace this concept, the market will start to run again. Until then it is most likely to remain within a tight trading range of 1100-1280. Gold Bull: Sheer Fantasy Or Is It Ready To Breakout