Really? The usual reaction is, “the stocks have been hammered, gold is off over 30% from its highs, and silver is down nearly 60%. Sentiment is low, few people are interested, and gold and silver will probably crash again in a few weeks.”

Exactly!

We have been conditioned to expect lower prices in spite of:

Massive demand for gold from the Chinese Central Bank
Massive demand for gold and silver from the public in both China and India
Reduced supply from mining
Increasing public demand for both gold and silver in the US and Europe
Increasing realization that paper currencies will inevitably be devalued more each year. “Inflate or die” is the central bank mantra.
Weakening US dollar and increasing shift away from the dollar by China, Russia, Iran, India, Brazil, and other countries.

And don’t forget that central banks everywhere are openly and excessively printing their paper currencies to encourage inflation, politicians are fomenting wars, and the global monetary system is more unstable every day. Accidents can happen, and those accidents will justifiably encourage people to shift assets to something solid and real – like gold and silver. But, you have heard it all before.

So, listen to an excellent technician: Nicholas Migliaccio does his own brand of technical analysis, and his comment is, “DON’T MISS THIS RALLY!!!” Why? Price movement, breadth, and volume, and he has the graphs and analysis to support his statement.

Download his pdf here: Precious Metals Buy Signal

Read his blog: Denaliguide’s Summit

Also: Cartel Buster

My view is shown in these three graphs of daily data for the XAU (gold stock index), GLD (gold ETF) and SLV (silver ETF).

The XAU, gold, and silver look like they have bottomed. Asian demand is strong, and we have been assured by central banks that they will devalue their currencies to create inflation. Gold, silver, and their stocks will benefit.

Consider Nick’s article, ignore the nonsense that gold is dangerous, and buy coins or bars.

GE Christenson aka Deviant Investor If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2014 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.