Will it make any difference to gold and silver whichever of these appalling presidential candidates gets elected to govern what still remains the world’s most powerful nation? Obama has accelerated the decline in the nation’s superpower capability, arguably Bill Clinton’s legacy, and the erosion is set to continue with his wife in office but would […]
Browsing through the diverse views of the many investment news letters and analysts opinions that fill my inbox daily together with the Donald’s reported political appointments and almost daily change of policies, it really has become impossible to forecast the direction the US economy will take in the first months of the new presidency.
Gold started to rise in mid January and gold bulls, myself included, felt that the tide had turned at long last.
By February 12th it had reached $1237.00 an oz. and all looked well for the long overdue assault on $1400.00 an oz. and upwards. Some dared to think that $2000.00 an oz would be in its sights within another twelve months.
If we believe all that we read, then we can have little hope that gold will recover any of the lustre it enjoyed between July 2012 and October 2013 in the foreseeable future.
Can you remember how excited so many technical analysts became when gold hit a double bottom at the end of July followed by another near bottom early August. In tech speak, double bottoms lead to a rising price and sure enough within three weeks gold had risen from $1085 to $1162.
My Father loved an argument. So much so he would deny the obvious just for the sake of pitting his ability with words to deny the logic of his own father and his son. I remember my grandfather pointing at some white floor tiles and saying “ your father would argue all day long that those tiles were black just to be different and to get us wound up”.
As all dedicated followers of precious metals are, no doubt, by now aware gold and silver have hit lows not seen since spring 2010. During these four years we have seen the effects that a series of quantitative easing policies have had on the psyche of investors and speculators of all classes, from the humble retail buyer to the powerful central bankers and their cohorts on Wall Street and further afield overseas.
Both gold and silver are in the doldrums, anybody can see that. The questions are why and how long will it last? Activity in the spot market for both metals is low, lacking little interest from funds, speculators or retail investors.