ggray, that is true, but history shows mostly during economic booms, and this is not considered a period of economic boom..ex: the past 6 months, period right after crisis 2008. The closest relationship to gold price continues to be US and global debt...I wonder what else is out there that will occur that will send shock waves that will LIKELY to occur. This is far from normal times, volatility and fear index have risen sharply for a reason. Don't think the US is devoid of making similar news. 2013 may end up being a period of unwinding in the gold market and 2013 being the period of accumulation..who knows .. for now, things does seem to be shifting very bullish . Apparently some people have even lost some confidence even in the Swiss and that's not even safe as it once we was, look for the same people to turn to gold.
Disparate times sometimes requires disparate measures. They actually also reduced interest rates on lend outs even further into negativity. In the mean Mux is now much closer back to profitability and have managed to maintain a good amount of money in the treasury with more money owning to them from Mexico.
With a number of body blows over a period of 3 weeks the bear has been staggered. Last seen wobbling to its corner. If Q1 resembles anything like Q1 2014, it may cause some investors to hit the panic button and some more lipstick will be needed
Mux has always been heavily shorted due its volatility and liquidity. Also being on the main board in New York makes it really simple to cover. Might be a pronounced statement, but any fragility in the dollar gold will likely spike and the remaining shorts will likely fuel mux a little higher then most
Using methods in calculating inflation prior to 1980, inflation would be 9 percent today!. At that level, current interest rates should be somewhere around 11.0%. Keep this in mine when comparing current numbers from the past. With every economical cycle, interest rates get lower and lower..translation the govt could never bear the cost of higher interest rates again with the increasing debt we are creating
This is the consequences of zero interest policy plan for 6 years, eventually they will be a price to pay with either decision, not increasing interest rates and increasing it..Oil is the wild card
If fed increases interest rates which is followed by a surge in oil prices,,,not a good outcome. Fed may want to reconsider. I don't want another great recession and even more misery..just want gold at 1550 and silver 24
Job report indicates wages are still down, part timers are still part timers, participation down, production down, manufacturer down and will get worse if fed doesn't get the dollar down...
Analysts are followers not leaders and there predictions are based on what everyone else is saying. Unsophisticated forecasting is much like a drunken man uses lamp posts for support rather than for light. Its best left for the folks that have money in the game who are able to maximize the predictable components and are able to filter out the noise caused by unpredictable events
The Scotiabank get together with Rob and others in the industry provided a more interesting discussion.
What's most interesting which has not been discussed much this past year is the huge volume increases in gold mining ETF's, the largest levels ever. One could argue that most of that interest is towards the short side which is likely the case, but to me that provides a huge opportunity to patient investors. Whats given is the hedge funds are getting back in given the fact JNUG, GDXJ, GDX, GDXJ volumes have been significant!!, whats also given is that hedgefunds are NOT in it in for the long term considering the volatility of the sector, thus something has to give sooner rather then later...translation short covering will be one stimulus if not the THE FUEL once gold starts moving.
What wasn't also mentioned in there discussions is that I feel gold's capitulation occurred in 2013, the bubble popped and most investors have already fled, we can see that in GLD volume this past year..lower then 2013.
Translation, to me its just a waiting game for a game changer for the folks on both the short and investment side.
He could of easily waited AFTER GDX had sold all of MUX shares (25m) knowing the share price would drop. He actually bought his shares the trading day BEFORE gdx started selling. Buying before rather then after the event is a gesture his purchase was not stimulated because of a dip but he believes in the huge upside of the current market and the company. ..McEwen HAS OUR BACKS!!...unlike any other CEO
Vey interesting discussion about gold price presently and into the future, Rob speaks as well