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Dundee Wealth's 9 Reasons Why The Gold Bull Market Will Continue (As Will The LBMA Short Covering Squeeze)
As the LBMA is finally caught in a toxic gold and silver short covering death spiral, we present a recent piece by Canada money manager Dundee Wealth which lists 9 detailed reasons why the bull market in gold will go on and on. Among these are: 1. Global fiscal and monetary reflation: PIIGS, US, etc.; 2. Global imbalances: the dollar must decline; 3. Global FX reserves are “excessive”: diversification; 4. Central bank attitudes to gold: now positive; 5. Gold is not in a bubble: room to rise; 6. Mine supply is flat: “peak” gold?; 7. Investment demand: long-run uptrend; 8. Commodity price cycle: many years to run; 9. Geopolitical environment: positive
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Gold, bugz!
Thanks, ZH.
Indeed.
A quick word on fiat currency. It is essentially a faith-based system. Now, I ask you, can you think of any way to restore faith in the USD? No, of course not. The only thing that could even give it a veneer of respectability would be if there were high interest rates.
So that defines where we are at the moment, with a currency that is rapidly losing the support of those who use it (esp. the rest of the world) but no political will to raise interest rates. High interest rates would only cause EVERYONE to default right now.
Since they cannot regain the faith that has been lost what choice remains except to hold out for as long as possible, merely delay the collapse. Faith once broken is almost impossible to restore.
http://psychonews.site90.net
Here's your real reasons for this "gold bull market":
Synopsis: Gold Is Not Money
Where are all the "gold is dropping back to $500" freakazoids?
Awful damned quiet on the "we're all going to die from deflation" front.....
gold shorts getting squeezed into oblivion?
mikey likes it.
++
Actually, Gold does better during deflations:
http://globaleconomicanalysis.blogspot.com/2007/02/is-gold-inflation-hedge.html
And, not all deflationists are anti-gold. Mish is a notorious gold-bug deflationista.
So far, he's been right-on.
Mish may be the greatest cut and paste economic journalist of all time! Of all time!!
Snicker. I guess that monetary inflation might actually be important then. Eventually. To Mish that is. The rest of us sort of figured that thing out ages ago.
One person we wont have to hear from again:
by Johnny Bravo
on Fri, 09/10/2010 - 02:57
#573653
I don't say quite 900, but otherwise, I'll hold to everything else you said.
If there's a 200-250+ move downward, I want respect.
If it hits 1400 first, I'll leave. Kay?
OK, Jonny B--time to perk up and 'splain why this is so wrong!
- Ned
they "deflated."
snicker.
Gold, bitchez...as in Peak.
watch the production figures, '09 was a banner year, but the '01 peak and decline trend still stands.
When silver peaks, look the fuck out.
What we are seeing is a coincident peak in a LOT of materials at the same time. Now, it may seem far apart to us, just as archeologists discuss the "collapse" of the Bronze Age as a "sudden" thing when in actuality it took place over decades and centuries.
We're IN such a transition period. Our human arrogance leads us to believe that our decade will take 10 years to read about when it will just be one sentence in a history book. That's why we struggle to see forests for trees very frequently and realize that we are living through a collapse phase. We expected it to be punctuated like the historical accounts where we read about how it was over just like that. Even Weimar took years.
When history is subsequently written, they will say that energy supply and nearly every useful elements' production peaks occurred simultaneously in a Peak Everything. Hopefully, they will write too that "in a fit of unprecedented sanity, Trav7777 was elected king and dat nigga fixed shit"
its as simple as unlimited money chasing limited resources.
Check out my Tiger style.
Wu Tang Clan- Shame On A...:http://www.youtube.com/watch?v=Wf3jzDb4H7o
All of this talk of bitchez this and bitchez that, gold bitchez, silver bitchez, here a bitch, there a bitch, everywhere a bitch bitch, etc....
QUESTION: Is Peak P u s s y going to coincide with all of these other peaklingz goingz onz?
Seriously. I hope not.
Highly overbought... Definitley in a bubble.
peak oil pretty much implies peak everything else, even pussy.
on the bright side if you can procure barbecued rat meat, the pussy will come looking for you.
Now that is funny.
But having been to Cuba, I can assure you it's more true than you think. A ham sandwich and a couple of Cokes had them dripping...
Now that is funny.
But having been to the USA, I can assure you it's more true than you think. A generic prescription and a couple of shots of insulin had them dripping...
http://www.youtube.com/watch?v=ZO4cqJ5IGro
"...see how that works?"
Regards
Ashes to ashes, dust to dust. If it weren't for women, our peckers would rust!
Frighening Bearish Divergences on weekly Gold and Silver using RSI. Look out below. Silver back to 23 and gold back to 1260 next. Not a fundamental argument so don't bother.
whatever u say mr. prechter
not a wave guy myself. do notice that Silver just put in a 30 minute reversal bar at the top of the range tho...........
What a Massive Gold Speculation this is, put on by the Big Ones and it is indeed sucking in a lot of "gold bugs", man I wish to see them faces when it all blows up! Jesus, what a frenzy this is, Greed and Fear really seem to work!
well... go ahead and try to time exactly when Simon Says: "thumbs down."
do you hit or stay on 16 with dealer showing a 7 or 8? or perhaps you prefer other games of chance; like guessing red or black?
In principle I do not disagree but who started this frenzy...yes Paulson and Soros! Long before any gov intervention aka QEs and other "stimulations", so they knew something we mortals don't, which means when this shit hits the fan they will, again, be long out leaving the "gold bugs" holding the gold bags! as to holding 16, man I did won with less!
Historically speaking, folks holding the actual bags of gold were never considered the losers in a trade. Perhaps this time is different.
So because you can't time it perfectly it's better to hold bags of paper?
no flacon mon ami I hold neither just commodities soft and hard some put options on spy and lots of ammo...just kidding!
Reminds me of Cramer and the "Winners of the new world": http://www.thestreet.com/story/891820/the-winners-of-the-new-world.html
if this is the actual popping of a bubble many events will occur that will at the time "seem to defy financial logic." we shall see but "the sudden strengthening in the dollar as it becomes blatantly obvious that "we really are in a recovery as has been government policy since the day Lehman failed" is one. It only requires "modest growth" since "interest rates have been negative for some time now." We have no idea "what goes on in a Federal Open Market Operation" but suffice to say "they have an awful lot of confidence in their trading for people who don't do it for a living." Giving the "odd amount of power given to just one man" (ahh, leave it to government to simply copy JP Morgan the MAN in their "government approach to banking) in modern day Central Banking "a lot of confidence rides on the decisions of just one guy." Needless to say "the last guy blew up the entire banking system" so such a model does not exude "confidence" shall we say if history is any guide. And Ben Bernanke "cut his chops" on "the trading floor of PIMCO"? Or did he work with John Mack "before they forced him out at Morgan Stanley for being one of those Chicken Little types on the bond side always whining about risk management." Of course "investing in treasuries" and every other asset class "is a risk free venture."
Given that gold stocks are over 80 years of mine production, one should not attempt to analyze the price of gold based on mine production, peak or otherwise.
That said, certainly all paper currencies are going down. So the exchange rate to dollars will of course continue to rise (i.e. more dollars per ounce).
I understand your reasons for posting this TD, but surely you know that Dundee is the least reputable AM firm here
Dundee is hardly the worst,not even close.
Maybe not but for all their current "prescience" about the direction of the gold market they were absolutely clueless about equities in the summer of '07 when I "eccentrically" liquidated all my stupid mutal funds and yanked a whole bunch of money out of their clutches.
How about a list from top to bottom, oddjob?........who is your fav and who is not?.......throw in a few whys for fun, all right.
More apropo; Dundee Wealth Mismanagement.
A paradigmatic shift is occuring in the precious metals arena. Understanding and awareness will be required for those wishing to enjoy the parabolic price moves higher in the coming months
http://rosenthalcapital.com/blog/2010/11/stock-market-strategy-precious-metals-outlook-reprint-of-rcm-october-letter-to-limited-partners/
Shit! I just hit refresh and the price didn't change. I've become used to it rising every damn time.
Waiting for Obama 2012 comments! Missing the fun!
damn, you typed it before me
Couldn't governments just borrow more gold? (scratches head)
Trailing tight just below AGQ, DAG, SGG, BAL, AND GDXJ. Each one well over 100% profit from entry. This is sweet. This is what trading is all about... when its not...such as it is.
Yea, and the Fed is killing the faith in the reserve currency of the world and the other countries are trying to get out of this inflation spiral.