March 3, 2016 Leave a comment
As of today, Canada has no more gold reserves.
This is a process that has been going on since the 1960s, when Canada had 1,000 tons of gold reserves.
Now they have zero.
Markets, Freedom, and Truth
July 25, 2013 2 Comments
The price of gold has been going through an anxious bottoming period and now seems resolutely back above $1300. But what’s next?
Look at the following chart:
Basically, this chart shows the difference between commercial long and short positions. The green dots are positioned at intermediate low-points in the price of gold, which are also points where commercial net longs are at relative highs. This is no coincidence. The commercials are major players in the market. They hedge against price fluctuations rather than speculate. They reduce their short positions near significant price bottoms. If you could go back in time, the green dots would be your buy signals. This chart shows commercial short positions at the lowest point in a very long time — more than ten years. Where do you think the newest green dot will appear?
Now look at this chart, which is a little different.
This also illustrates how the falling price and increase in commercial long positions generally foreshadows a meaningful rally for gold. If I were to judge from this chart, I’d say we should expect a significant expansion of commercial longs. The price of gold should correspondingly rise. Here, the red dots are the buy signals. Where do you think the newest red dot would go?
As a conservative estimate, if we saw a rally comparable 2005 and 2008’s moves, the next phase of the gold bull market would approach $2000/oz.
This process is likely to unfold as the current business cycle matures, over the next one or two years Then when another panic hits, gold will sell-off until central banks accelerate their monetary interventions. They will do this to fight the onset of a crushing economic depression.
— Read more at King World News —
June 17, 2013 Leave a comment
You have to see these images from China.
During the Dragon Boat Festival, ten thousand Chinese demonstrated the depth of their gold fever by lining up to buy that “stupid” investment. This is despite the relative respite from inflation, according to official Chinese statistics.
All these people want gold:
China is a source of demand for gold that will be significant in the long term.
— Read more at Mises.ca —
May 2, 2013 Leave a comment
Owning stocks in the junior mining sector is like holding a stick of soggy dynamite. With a good trade, your portfolio gets a growth explosion. With a bad trade, you explode.
These shares have taken a beating in 2013, creating huge opportunities for value. Insiders have no compunctions about scooping up shares at these low prices.
The INK Research Venture indicator was at 715% on April 30. This means that in the past 60 days, more than seven stocks on the TSX:V have insider buying for every stock with insider selling. Historically, this tends to foreshadow a rally in those prices.
In early March, this indicator was ‘only’ at 400%, so there has been a large increase. The current number is very close to its all time peak of 735% back on October 27, 2008. This preceded the bottoming-out of the Venture market in December 2008 by about six weeks. You may recall how that was a time when many people thought the world was going to end.
But wait. There is also a shorter-term 30-day Venture indicator. It hit 1229% on April 30.
Then there is the INK Gold Stock Indicator. This tracks insider buying on Canadian-listed gold stocks. There are more than 10 stocks with insider buying for every stock with insider selling. This indicator hit an all-time high of 1046% on April 26.
To be a successful investor, you have to be gutsy and buy when prices are low. Maybe insider buying patterns give some encouragement to acquire more soggy dynamite for your portfolio.
— Read more in INK’s report —