“Major Battle Underway In The Gold Market”

The chart (and blog title) above is from James Turk via King World News. Turk was making the point that the western Central Banks, via the bullion banks, are short $4 billion worth of paper gold on the Comex. With all of the Central Bank money printing, and the Fed is by far printing the most, it would be a disaster for the fiat currency system if the price of gold were to break free and rediscover price discovery. It’s only a matter of time until this occurs. But for now the Central Banks are making a concerted effort to do what they do best: defer reality for as long as possible.

For now the goal is to prevent gold from breaking above $1800, which means the invisible “battle line” is at $1790. I remember when gold was trying to get over $400. It seemed like it took forever. But once $400 fell (shortly after Elliot Wave aficionado, Robert Prechter, proclaimed gold was going back to $50), it didn’t take long for gold to double (about 18 months). I think once gold gets through $1800 and holds, it will challenge the all-time high at $1900 relatively quickly. For as bullish as I am on gold, I’m 3x more bullish on silver.

A subscriber was concerned about the possibility of the miners getting hit hard in the next general stock market crash. I suspect the miners will get hit initially but then stage a rally. But that’s why I advise always leaving yourself plenty of cash to take advantage of big sell-offs that will likely recover quickly and take the market higher.

We’re in an ideal period of time for gold/silver to move higher with all of the money printing and concomitant currency devaluation. As gold/silver move higher the mining stocks will eventually catch a big bid from the mainstream investing public and soar. Look at how quickly the mining stocks recovered from the March massacre. (And from the Thursday/Friday morning price slam as the Comex was opening).

NOTE: The commentary above is from the last issue of my Mining Stock Journal subscription newsletter. In this issue I provide any updates and recommendations on my core portfolio recommendations.  I also provide a brief review of Vizsla Silver ($VIZSF) and Mako Mining ($MAKOF).  You can learn more about my newsletter here:   Mining Stock Journal

5 thoughts on ““Major Battle Underway In The Gold Market”

  1. This is such BS… I’m a gold bug and the 21st century version who sees gold as money.

    To compare the value of fiat currency to the value of gold and to be fair , the utility value has to be taken into consideration. Don’t compare apples to oranges.

    Fiat currency circulates to grease the wheels of economic activity, albeit far from efficient because of the inflationary debt overhang, but we sill have to look at the utility.

    Gold that sits in hoards has no economic utility so it’s very fair to say that gold is priced fairly given the supply and the demand for gold’s utility. Gold that sits in hoards is overstock, dead inventory in the eyes of the gold market and the very people who keep the price fair as per real demand.

    The take away is simple. Increase the utility value of unemployed gold and the price will follow. Gold doesn’t need a raise. It needs a better job by supporting economic wheel greasing ! That’s value ! Price will surely follow as per true market principles.


  2. They can try fooling but is getting harder and harder to do it.
    They can’t stop gold going higher , only good news left , nothing else – Stock Market going higher, but for how long??

  3. Gold will go to $1800 this week of 6?29. The move to $2000 will occur
    before the end of August. This is based on current momentum and
    mathematical projection. Yes, some of us can still do calculus and
    physics. Enjoy the ride.

    1. Calculus & physics have little pdice dynamic power compared to the combined manipulative power of Comex, all Western central banks, and other financial organizations that don’t want it to go up measured in fiat numbers.
      The nu mb bers you mentioned might happen, but they are as mush guesswork as mathematics.

    2. Your figures are educated guesses; they might be right or not.
      Mathematics can’t be used to accurately peg a price this week or in August

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