Gold should take flight, "if" the Fed doesn't raise rates, and we now learned that they didn't. But I'll caution, I have seen the Markets so manipulated, that nothing surprises me. Still, gold should have been a big safe-haven trade during the last big Market drop recently, but as we saw, nothing. Why? B/c, imo, the Fed created one of the largest stock-asset bubbles we have seen, and everyone and their brother (a few pundits aside) have ridden on the Fed's back, carrying stocks to un-warrented hights, and as long as people can believe in the story, namely that stock prices are justified with our real and current economic growth, then "why fight the Fed", and why be near lunatic, and "buy gold".
Well, I for one am not a believe in false premises, no matter how big they are. The Fed isn't, never will be and can't be, the real value-creator of stocks. That can only come from the "free hand of the Market". Will people realize that the "free hand of the Market" has been so suppressed and controlled by the Fed, and really begin to question "where we really stand value-wise with paper assets in the Market"? I personally can't say with conviction, b/c I've witnessed one of the largest, most profound and "controlled experiments" in setting asset prices in the Market, ever witnessed in modern history. Time will tell, but if capital really begins to question where true value lies, then gold may get it's dance, ahead of and into inflationary times, just like its run from $900 to $1,900 in 2008. We'll see, but I'm not holding my breath.
Fed rate decision today will determine gold's direction short-term, and "inflation", if it ever appears, will determine the more long-term trajectory, imo.
Yeah, many other gold-mining stocks could get stuck-below-a-buck, such as KGC, and AUY, and I'm sure there are others, but with these decimated prices, it's almost as if they are trying to short-kill them, like they did the US-coal plays. I've given-up on "the logic of pricing these things for bankruptcy"; Rather, there is so much more at play, and it's "all about the Fed", as with the pricing of so many other assets are.
We'll get a more clear picture tomorrow, but I'm not holding my breath for much concerning "gold" given how it has been decimated so much beyond normal "free market pricing". GLTA! eom!
Don't hold your breath; When markets are this manipulated, throw-reason out the window; They've found every reason under the sun to sell the Comex Gold market, market-up, market-down, gold-prices up, gold prices down, fear-of-this, fear-of-that, to raise rates, not to raise rates, and any other reasoning you can think of, still the same result: GOLD DOWN-DOWN-AND-DOWN!
Why would it be any different come rate-raise-or-not time?
Nothing surprises me any more and I mean nothing. Our Markets are puppet stings of the Fed, pure-and-simple! They control stock-asset-prices, the USD and the Gold price!
With not public input whatsoever, even though we residents live within 1-mile if this new mega-store, being built off Exit 14, I-40 in Memphis, TN. Plus, it's next to a Tennessee Imperiled waterway, and they are only required a 60-foot buffer between massive run-off, oil-coolant fluid from people's leaking cars, and imperiled Fletcher Creek.
Sound like a company you can invest with "for the future"? Progressive companies don't conduct business like this, but rather, juggernauts that are trying to reign supreme, while the ground crumbles beneath them. Reminds me of the McDonald's menu, although I don't think their so egregious to the public's welfare, environmental wise, not cholesterol-wise, pun intended.
Sentiment: Strong Sell
The more you see these gold stocks get crushed, the higher-and-higher the paper-stocks are given to run, and told that "they are the ONLY GAME IN TOWN", and consequently wanted to be lifted ever-more high by the USD-club and corporate culture, that were given $4-trillion by the Fed, after raping the consumer in 2008, the more I know how rigged the Comex is. It's too funny at this point, and the more perverse the manipulation of our markets is showing to be, the more I know just how un-stable our capital markets have become the world-over, since everyone and their brother is QE-ing!
A new Super Wal-Mart is being built, in a FEMA 100-year flood-plain, next to an imperiled waterway, where migrating Canadian geese used to land (until they recently bull-dozed the land), hordes of deer would feed at night, and fog would roll-in off the river-bottoms.
This is happening at Exit 14, off I-40 of east Memphis. They thing that is so reckless about this particular development, is that there are so many other sites close-by, prepped for re-development, that are "for-sale", and that folks would welcome. This development, on the other hand, is "encroaching, egregious, and not-in-keeping with long-term conservation values". It is this dis-regard for the public good, that has tarnished Wal-Mart's image, and made it an "enemy of the people", not a enabler of a greater good. We don't live in the 1900's anymore, where there were bunches of open-lands, in need of development. Rather, it's the opposite. We need to conserve and really be conscientious about our effects on the planet and our surroundings. If Wal-Mart wants to prosper, they must truly look-out for their shopper's environs, wanting to keep their business from becoming run-down Commercial, blighted and of un-aesthetic appeal, while building upon "endangered and sensitive lands".
I couldn't give investment dollars to an outfit that robs me of "peace-of-mind", exacerbates destruction of wildlife and habitat, and isn't concerned about the public's well-fare above corporate profits. Corporation with respect and staying power, honor people, and that means, honoring our home-environments.
This is a bad idea, as we already have x2 Super Wal-marts within 6.1 miles of this proposed "environmentally damaging one".
Sentiment: Strong Sell
It's all about the Fed. In that day and age, the Market traded more on it's own scales. Now-a-days, it's massive Gov. intervention, a dissing of anything of inherent value, and a huge effort to push stock-valuations through the roof---of nearly everything "paper", but the opposite for hard-asset based corporations.