Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

The Demise of the Gold and Silver Bull Run is Greatly Exaggerated

Commodities / Gold and Silver Stocks 2017 Mar 21, 2017 - 03:16 PM GMT

By: Peter_Degraaf

Commodities

A few analysts are once again beating the drums for much lower gold and silver prices - supposedly just around the corner. They mistake the testing of a recent breakout for a turnaround in the main trend. In the process they are sowing confusion. Here are some charts that show the main trend, along with reasons why the price of gold and silver is on track for a sharp rise, thanks to bullish fundamentals.


Gold Bugs Index Daily Chart

In view of the fact that we expect mining stocks to lead the way, we will start with the HUI index of gold miners. Price has just finished a test of the January 2017 breakout. The green arrow points to confirmation of the uptrend that began at the blue arrow. This is referred to as an "ABC bottom". The target for this breakout is 365. The supporting indicators are positive with room on the upside.

US CPI

This chart courtesy Goldchartsrus.com shows the long-term trend in the US rate of inflation, along with the short-term trend in red. Both long-term and short-term rates are rising. This trend provides energy for gold and silver to rise.

Monthly Gold Chart

Featured is the long-term gold chart in log format. Price has found support at the 150 month moving average. A breakout at the $1300 level will be very bullish and will set up a target at $2100.

US Dollar Index Daily Chart

Featured is the US dollar index. Price appears to be carving out a 'head and shoulders' pattern. The set-up will be confirmed in the event of a breakdown at the purple arrow. The target for this potential breakdown is at the green arrow. Gold and silver can be expected to benefit in the event. The supporting indicators are negative.

Federal Debt 2016

This chart shows the official US Federal Debt is closing in on 20 trillion dollars. It will never be repaid. It will be inflated away. Gold and silver will rise in price as a result, albeit in inflated currency.

Gold/BKX Daily Chart

Featured is a chart that compares gold to the US banking index, with gold again at the top. Major turning points in this comparison chart usually coincide with turning points in gold, as indicated by the vertical green and purple arrows. The breakout at the blue arrow, once it is confirmed by a rise above Monday's range, is likely to lead to a surge in the price of gold.

GDX/SPX Weekly Chart

Featured is a chart that compares GDX (the miners ETF), to the S&P 500 index. The pattern is an Advancing Right Angled Triangle (ARAT). The supporting indicators are positive. A breakout at the blue arrow will be very bullish for gold and mining stocks, and bearish for generic stocks.

Gols versus US Monetary Base

This chart courtesy www.macrotrends.net is one of our most popular charts. It features the gold price compared to the US Monetary Base. The current ratio of 0.3 is just above the lowest reading in 100 years! This means gold is the cheapest in 100 years! The time to buy gold is when it is cheap in comparison to the Monetary Base (as now), and the time to sell is when the ratio rises above 3.5, as it did in 1980.

Real rate of return

This chart courtesy Goldchartsrus.com shows the 'real rate of inflation'.  When the rate is below zero and falling (as now), we expect gold to rise in price, based on historical performance.

Weekly Transparent Gold Holdings

This chart courtesy Goldchartsrus.com shows gold holdings in trusts and ETFs are on the rise again.

Shanghai Gold Exchange February Withdrawals

This chart courtesy Smaulgld.com shows a major contributor to the current bullish fundamentals in gold. Chinese investors and jewelers purchased 179 tonnes of gold at the SGE in February. This was the highest number for any February on record! This amounts to well over half of all the gold that was mined during the month of February.

Silver/Gold Ratio

Featured is the index that compares silver to gold. For the past year silver has outperformed gold. A breakout at the blue arrow will cause the trend to pick up momentum. It will be bullish for gold but even more bullish for silver. The 50 week moving average is about to perform a 'bullish crossover'.

Weekly Transparent Silver Holdings

This chart courtesy Goldchartsrus.com shows holdings of silver bullion at trusts and ETFs is rising again, after a four month decline.

Peter Degraaf is NOT responsible for your trading decisions.  Please do your own due diligence. 

By Peter Degraaf

Peter Degraaf is an on-line stock trader with over 50 years of investing experience. He issues a weekend report on the markets for his many subscribers. For a sample issue send him an E-mail at itiswell@cogeco.net , or visit his website at www.pdegraaf.com where you will find many long-term charts, as well as an interesting collection of Worthwhile Quotes that make for fascinating reading.

© 2017 Copyright Peter Degraaf - All Rights Reserved

DISCLAIMER:Please do your own due diligence.  Investing involves taking risks.  I am not responsible for your investment decisions.

Peter Degraaf Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules