Gartman Finally Acknowledges The June 2013 Bottom In Gold

We will look back at the late June 2013 bottom in gold and realize that it would have been a unique opportunity in the market – both physical gold/silver and mining stocks – to bet the ranch and experience lifestyle-changing wealth gains. – Investment Research Dynamics

Gartman:  “This chart of gold in weekly terms tells an important story of gold having made its low more than a year ago, with the low tested three times… and now with the down trend line drawn here broken through rather decisively”…

“War is in the air and when war is in the air gold goes bid. What else can gold do? Capital is fleeing to the safe corners of the world, and when that happens it flees to gold. …this shall be an important day for gold and for gold’s future, for whoever or whatever has been the seller of gold on Friday’s in recent days, weeks and months cannot allow gold to trade upward through $1325 and certainly it cannot allow gold to trade upward through $1350 through all other markets in all other places. Hence…and let’s call this group “The Force”… the “Force” will have to work very hard today to defend its authority. The question shall be, “Will it?”

The “Force” has already lost one very important battle: it has lost the battle at €975/oz., with gold trading presently at or near €982 and with the truly psychologically and technically important €1000/oz. level only just a bit ahead.”

Your’s truly here made that call in late January this year:   Gold Has Found Its Bottom

Of course, my $2000 call is looking terrible, but I underestimated the extreme degree of Fed/Big Bank/Bank of England intervention we would get in the gold market.  $1500 is looking reasonable, however.

If we get $1500, the mining stocks will have made a big move.  My “Trade Idea” call from last Friday is still valid.  The stock has bounced 5.6% since then but it still has an easy $3-$5 in it, assuming the sector at least moves sideways.  You can access the report here: Research Reports.   Included is a free technical analysis assessment from Nick of Denaliguide.


11 thoughts on “Gartman Finally Acknowledges The June 2013 Bottom In Gold

  1. Well, your call isn’t as bad as the idiot Sprott who said gold would be 2100 by December. I left a msg on their blog betting my house that he was wrong.

    There are two things I have come to understand.

    These bastard bankers control and manipulate EVERYTHING. Including propaganda and rhetoric. They have only two jobs left. Defend the dollar, equities, and inflation propaganda and destroy the price of gold. That is where they concentrate all of their time, money, and energy.

    1. Sprott and I both underestimated the degree to which our Government and banking system is corrupt.

      The problems being covered up by the corruption are the reason the U.S. is starting WW3.

      The message of history is clear: when the problems of a powerful country become too extreme to cover-up, blame it on everyone else and start a world war.

  2. Eh, I actually think $2000 this year is still reasonable. Another crash during the winter months seems fairly likely, and we can all guess Yellen’s response, as well as how investors will respond to Yellen. One hundred dollar up-days seem reasonable in such a scenario.

    1. True. If they lose control of the downside action in the stock market this fall, we could see QE re-upped and an explosion in gold. I wouldn’t bet on it though. The ECB appears to be teeing up ABS money printing.

      1. Too late. 😉

        Figure even if it doesn’t pan out like that, I’m not exactly mad I doubled my position in gold miners in June, as I’m still likely to come out way ahead. I do expect them to complete the taper with the crash following in Winter. At which point it should be clear these clowns have no clue what they’re doing.

        Can’t wait!

  3. Before we completely dismiss the idea of a slice through 1000 euros POG- like a sword through butter- and $2000 before 2015, more “black swans” are breeding besides the familiar geopolitics, debt and western credibility issues.

    In September, several large eastern physical-only gold exchanges begin full international operation, permitting unencumbered, undistorted price discovery.
    Similar to the transition in their oil and gas markets, good delivery bar gold settlement and transparent clearing is suitable for the tangible asset backed currencies which BRICS and Eurasian Union members are committed.
    These, or any sovereign central banks or regional development banks vaulting real, audited and accessible gold is rewarded by equity and lending capital shifting proportionate to POG.

    In 2014, many industry sources expect Saudi Arabia to begin pricing oil in Yuan and other currencies- farewell petrodollar and their Swiss gold vault raids. Hello geographical reality and reacquaintance with neighbors.

    There are over 3000 German companies doing business in Russia. Germans are meeting and extending more business and cultural ties with all Asian partners- trade, energy and transport connections flourishing.
    With full domestic support, Germany will likely pull out of the Eurozone and NATO this year, to survive and prosper. Co-dependent France will have to follow suit, for similar reasons, and like Germany they are also busy countering the NSA and other foreign espionage with key policy reversals, personnel reassignments and equipment replacements, modifications and upgrades.

    Wolf Richter blogged about these tense, spiralling convergences in broker, banker and investor sentiment, that must soon focus upon gold, if only to avoid the crush of algos and the drought of money velocity:
    ‘Faith’ in Markets Collapses Among Professional Investors
    by Wolf Richter • August 7, 2014
    W. Ben Hunt, Chief Risk Officer of Salient Partners, described a fascinating phenomenon – and one with a potentially dreadful outcome…

    “Since the outbreak of the Great Recession, with a few exceptional months marked by panic selling, trading activity in US equity markets has done nothing but go down. And when you take into account the growth of algorithmic trading and other machine-to-machine activity, which now accounts for as much as 70% of daily trading volume, the decline in actual human beings buying or selling stock in order to acquire a fractional ownership share in an actual real-world company is much more dramatic than this chart shows.”

    And this lack of trading volume has dried up liquidity not only in the stock market but also, or perhaps even more so, in the bond market (chart). Rather than being just seasonal or temporary, it represents are “a fundamental change in the behavior of advisors and investors…. It’s a buyer’s strike, a massive ‘meh’ about public capital markets, and it’s growing.””

  4. I for one am not ready to see higher gold or silver prices. I would like more time to accumulate. Based on the events of today and the projected future, I think we could all use a little more time to get our houses in-order. Once prices reach escape velocity, I doubt we’ll be adding to our stacks. SHTF events will probably be the cause of PM price increases. The weapons of modern warfare are not just financial. Bio-weapons, electromagnetic pulses, drones, weather control, satellite wars, etc… I’d like more time to enjoy life, smell the roses, stack, and prepare.

  5. When fiat paper will burn world-wide, the metals will be “last man standing”. Even some good miners might not make it through what’s coming down the pike. If the going gets tough, OB may sign a paper and all mines are nationalized by the stroke of his pen, if need be (deep gold!). So IMHO, miners are “gambling money” hoping that parts of the paper claim system (that includes any shares, or rather claims on shares or ownership of funds etc etc) will hold up in the rough waters ahead. Best of luck to all, and a big thanks to D-i-D for all your great work, it’s much appreciated. x

    1. LOL. He’s been pretty good with timing bottoms. Although, it took him over a year to figure out last June was a bottom…

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