its important to view pm's in the context of the economy as a whole. which is why you see me constantly talking about other markets besides pm's in my blog and in my posts here. pm's are affected by these other market movements. Bitcoin is even one of those markets that i believe has significance.
if we do, what do you think will happen to pm's and their stocks? they will plunge below $500 i believe. go back and review what happened to pm miners in 2008. carnage. the gold price dropped but it wasn't catastrophic. this time i think it will be worse b/c we're at the end of a 12 yr bull mkt. this wil be THE BIG ONE.
This isn't exactly 2008 - both comprehension and sentiment have transitioned from belief in the integrity of American finance to growing awareness of its fallibility. It's taken longer than I thought it would (damn lack of transparency making me underestimate liquidity magnitudes), but it's still happening at an accelerating rate.
Paper gold prices may plummet eventually, but physical gold cannot. Until that separation (which is a strong possibility, but not guaranteed) where the illusion truly has no bearing on reality, the undercurrents (real asset deflation, monetary inflation) continue to grind average investors up.
“This is when you see things turn and the manipulators rip it to the upside. There are buy stops on the upside that are attractive for them to target at this point.
In this type of environment, the only people placing bets for lower prices in gold are momentum traders. In the real world there is physical gold being carted away in bullion trucks because of the dip. More and more tonnage is disappearing.“
Source: KingWorldNews - London Trader - Sovereign Buyers to Raise Their Bids
... and again, I'm a cycle off, which is one reason why I usually stick with long-term accumulation
I've found that targets from Jim Sinclair
have been very reliable. His $2111 call for this year may be a ceiling, but it could act as a pivot point initially. That is: it may be the center of a few hundred dollar-range to both the upside and downside, perhaps around $1800-2400, later acting as $1800 is now.
inflationists and pm bulls will say that the Fed will just print and won't let markets go down. i ask; why did they let us have 2 devastating stock crashes in the last 12 yr and a housing implosion?
I can't claim to know their minds, but that isn't necessary. Just from observing behaviour, it's easy enough to see the reactionary nature that panicked when each of those events occurred. Martin Armstrong
has suggested that the world's leaders are like scared children, unsure of what to do whenever these crises erupts, so they typically choose the most perceptually-expedient yet detrimental course of action (i.e. make it look like you're doing something).
Behaviour is a very difficult thing to change. So from that point of view, they didn't "let" those things happen any more than a person "let" himself get cancer. In this instance, the Fed has been playing with carcinogenic financial instruments and policies while telling everyone there's no danger, then feigning shock when symptoms developed.
why not? that might turn out to be the deal of your life.Indeed