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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: POKERSAM who wrote (86202)	8/31/2016 7:25:18 AM
From: GROUND ZERO™	2 Recommendations Recommended By POKERSAM Qualified Opinion Respond to of 222814

Yes, as much fun for as it may be for many to hold long gold positions expecting the metal to reach for the sky, it just ain't gonna happen any time soon, not with the dollar moving higher... and the dollar is now in the early phase of a serious major leg higher, and higher rates will make it nearly impossible for gold to stage any kind of upward move other than its typical bear bounce... The impression I have is that gold is in a perpetual bear market and all rallies are nothing more than bear bounces... this is proven out by the performance of gold over recent years... Apparently, gold and fool's gold are one and the same... GZ

To: POKERSAM who wrote (86202)	8/31/2016 9:55:34 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 222814

It is interesting how the EWT can produce bearish and bullish counts from the same data. I am sure that you know that many technical analysts using EWT are very bullish long term from here.

To: POKERSAM who wrote (86202)	8/31/2016 10:47:36 AM
From: Nevada9999	1 Recommendation Recommended By Alias Shrugged Read Replies (1) \| Respond to of 222814

Gold at $500 is a prediction with a lot of implications. Other prices being somewhat as they are gold mining would be a thing of the past. Many say that matters not due to the above ground supply but owners don't like to sell gold for less than it can be mined. The breakeven cost for gold miners is well over $1,000. Gold price declines generally stop around the gold miner breakeven point. When gold was around $1,000 at the start of the year, the gold miner to gold price ratio was the most bearish ever, worse than 1942 when gold mining was illegal in the US during WWII. Maybe things get twice that bad for miners, maybe they don't. Gold discoveries peaked in the mid 1990's and huge exploration expenditures in the 2010-2011 resulted in paltry production increases which have now rolled into decline, and will soon be in steep decline. Central bankers have set us up for hyper-deflation, which will happen if the financial system totally breaks. In that scenario I could see gold at $500, but I think the Dow would also be a three digit number, single digit oil. I think the situation is more likely equivalent to 1976. Gold declined by 50% after its huge run from $35 to $195. It was triumphantly predicted that gold was on the way to it's true value of $1/ounce. Instead it went from $105 to $875. I guess the other possibility is that central governments and central banks really have achieved omnipotence and utopia lies just ahead. If so, there is no need for gold and $500 is ridiculously high. Time will tell.