Supply & Demand

In this transitional period to a new world order where uncertainty and risks dominate, gold is money in extremis and the preferred central banks’ reserve.

The longest running gold index - the BGMI - recently hit new lows vs gold.

The Fed is in full market control mode after its tentative interest rates future increase announcement. It constantly keeps the stock market from properly correcting, in the hope it will keep going until the next Fed announcement.

The next 7-year cycle, from 2015 to 2021, will bring a crisis of “biblical proportions”, much worse than the 2008 crisis, that might resemble the ‘30s Great Depression even more but, this time around, with massive devaluation of the dollar and other paper currencies against gold.

The Fed has fought by all possible means the installation of the correction wave, because the amount of debt is so high that letting deflation happen would lead to a never-seen-before catastrophe

Gold in Ukriane Hrvynia and in Argentine Peso

It seems that it is not the death of gold and silver as money that will happen, but rather the death of fiat money. For more than 2,000 years, gold and silver have been used as money under different forms and have outlived any other form of currency.

It is interesting to see gold rising while the global sharemarkets decline.   We can measure these moves with the Dow/Gold Ratio. Looking at the short term we see a trend reversal with a breaking of the wedge formation.         Looking at the larger pictur...

With the price oscillator a move above 10 will see the gold price above 1400 & be a major buy signal.

The gold miners’ good performance in 2014 bodes well for gold not having to worry about a bear market taking place, like in 2013, or about testing again its major $1,178 bottom.