Gold Crux: Irresponsible?

The Economy Is Slowing?? Railroads Apparently Did not Get The Memo at Value Plays.  I get it, the U.S. economy is moving along at an okay pace.  Regarding the current stimulus, Fed head Lockhart said “If we do not see improvement, more action may be taken.” (Bloomberg).  The Fed’s Evan is not as bold but on the same page (WSJ).

The massive open ended QE announced last week will be increased if the economy does not pick up steam as judged by the labor market.  Look for the first increase to occur near year end 2012 when operation twist runs out.  Parsing fed language will be fun and games until the next U.S. economic slowdown, at which time the printing may become shocking. Continue reading

Golden Radar

Perhaps this title does not mean much to you:  George Soros endorses 5% NGDP target (Money Illusion).  Next consider negative real interest rates as a a sign of the times (Iacono Research).  NGDP stands for nominal gross domestic product.  Soros is advocating a higher level of negative interest rates to ease ‘excessive indebtedness.’  While a bond holders nightmare, this environment will be a precious metal panacea.  The thought process is still a monetary frontier, but so was quantitative easing in 2008.  In short, it’s coming. Continue reading

PM’s to the Front of the Line

Since inception, Independent Stock Analysis has closely monitored the precious metal markets.  The bottoming out of the sector and recent breakout calls have been noted.  Until China re-accelerates, which is not expected soon, consider the idea gold and especially silver will lead the commodity complex.  Feel like you missed the move?  It’s very early following a long consolidation according Continue reading

Precious Positioning

Long-Term Technical Outlook for Gold & Silver at Daily Gold.

Gold’s performance in stock bear markets:  Zeal.

China and India account for half of world wide gold demand:  Frank Holmes.  So could “China’s problems be gold’s problems” at The Atlantic?

Re-monetization of gold speculation:  Does China Plan a Gold-backed Renminbi? at Gold Silver Worlds.

Franco-Nevada’s $1 billion precious metal stream financing with Inment leaves me underwhelmed.  I know it’s a good deal.  However, when it’s looked at as FNV blowing out their entire cash hoard or as consuming all the company’s free cash flow for the next three years, my favorite precious metal play may be dead money relative to the sector over this time.  FNV management acknowledged this deal does not the have the optionality upside typical for them.  Perhaps operating mining company stocks may receive some valuation catch up.  Maybe the play is to trade in FNV for Silver Wheaton and wait for their share prices to converge…

…Silver breakout looks at Nifty Chart Patterns.  SLV breaking out:  Kimble Charting Solutions.  Gold finds itself near the end of a flag:  Kimble Charting Solutions.

Enjoy this Rick Rule interview over your lunch:  King World News.

Gold Bug Royalty

Paulson Steps Up Gold Bet to 44% of Firm’s Equity Assets at Bloomberg.  George Soros more than doubled his GLD position to $137.3 million in Q2 (Zero Hedge).  Meanwhile, the S&P 500 has clobbered gold stocks (chart).

Which Way Will the Pendulum Swing for Gold?  Frank Holmes  Gold seasonals and outlook considered:  World of Wall StreetThe Ultimate Guide to Investing in Silver Coins and Bullion at Commodity HQ.

When Silver Wheaton announced the large Hudbay royalty stream purchase last week, their CEO noted “exploration upside potential” as a must for new streams.  That is a change in attitude, because in years past the idea was not even on SLW’s radar screen.  They took the page from Franco-Nevada’s playbook.  Royal Gold has not seen the memo.

I don’t do juniors, but this is why some gamble:  Vancouver gold junior surges 49% after Colombia find at Mining.

Yes, the Action in Silver is Constructive by All Star Charts.

Gold charts considered four ways at Dragonfly Capital.  We’ve been waiting on the longest impending breakout ever.