Gold - What Happens Next?

Tyler Durden's picture

Historically, gold bull markets last years and as you can see in the following chart from Casey Research we are still in the very early innings of this one.

 

 

As OtterWood Capital notes, Gold has been correcting recently and the question is how much further can it go?

 

During any bull market the long term moving averages act like support (I look at the 50 day and 200 day moving averages).

Gold has broken through the 50 day and could fall as far as the 200 day and still be in a perfectly normal bull market.

Corrections in long term bull markets happen repeatedly and should be bought.

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PirateOfBaltimore's picture

Let me know when it's worth dredging the lake.

American Psycho's picture

What are those coordinates sir?  I'll be happy to, errrr, help.

greenskeeper carl's picture

Casey Reaearch huh? Time to go short.....

This Might Hurt's picture

You not only have to consider that gold would be a god send to rebuild confidence after this debt based bubble ends, it also would be better for dealing with the limitations of a finite world as covered in the video below.

https://www.youtube.com/watch?v=kHTGeXH_WM0

Herd Redirection Committee's picture

When the "We'll buy your broken or unused gold!" commercials become "Buy gold from us!  The best price in town for your physical gold needs.  Buy now, or be priced out forever. Don't miss out, GOLD has increased 10x in the last 3 years!" thats when you sell.

zeronetwork's picture

Historical charts are without paper gold manipulation..

Jim Sampson's picture

Hold on to your butts, boys!

Bendromeda Strain's picture

THIS ^^  Remember (important) - two things happened more or less in tandem. Rothschild's pulled out of the physical London Gold Pool and paper gold ETFs hit the market.

any_mouse's picture

Exactly. The markets are totally fabricated now. Globally.

CHX's picture

...with the exception of the fizzical PM markets, and this is where the rubber will hit the road. There is so much fiat money and debt out there (and it will only increase from here on out) that the PM "price" is a joke, or rather a farce. First they ignore you, then they ridicule you (that's where we are), ... 

Infocat's picture

Dont trust anybody specific, just get your information from many different sources! http://www.truthjustice.net/

DirkDiggler11's picture

No doubt Carl, I think Doug Casey and Dennis the Fartman went to the same market timing and technical analysis school...

greenskeeper carl's picture

Ya they very well may have. To the down voters above, I'm not knocking gold, I just realize Casey research's track record. I've also said on here numerous times that I don't believe a big breakout is going to happen between now and the election. I wouldn't be surprised if it lost another 5-10% between now and then.

DownWithYogaPants's picture

The gold bugs seem to really talk their book around these parts and neighboring locals.  I like gold........but dang the harangings we undergo at their mercy.

Herd Redirection Committee's picture

Well, its cuz people tend to think you are crazy to be a gold bug after the last 5 years.  So you got to speak up, make sure people know you didn't change your tune.  And when they thought was a bad time to buy gold was in reality a heck of a buying opportunity.

johngaltfla's picture

Correction to $1280ish, surge to $2100ish by next spring.

We're just replaying 2008-2009 but this time it's not going to have a Bernanke Bazooka to save the world.

gmrpeabody's picture

I want some of what he's taking...

johngaltfla's picture

Common sense, it's free, fun, but rare in Amerika.

Bopper09's picture

As long as people keep letting them bazooka fraudulent money, they will.  This week it's that central bank printing, then this central bank buying apple stocks, then those central banks buying more stocks, and so on......   Until we (well, .gov) just issue our own fucking currency or back it with something real.  We all know what with, but even backing with fucking potatoes would be better than this fraudulent, blatently criminal system we have in place.

johngaltfla's picture

The problem is that faith in central bank policy is failing rapidly. The day is coming when it is ignored and th Fed will have to declare "extraordinary circumstances" again to buy the equity market openly and finish the rigging of the game.

From that point forward, it only a matter of time until the day the dollar dies.

TuPhat's picture

When the dollar dies you won't be able to 'buy' anything with your gold.  You could exchange it for a lot of worthless dollars or use it for barter.  As a means of exchange in a barter economy there will be many things that will be worth as much as gold.  You could just use some dollars to buy those things now instead of waiting until the price increase is out of sight.  Those things would be food, fuel, medical needs, and things for self protection.  If you can't get those things now and store them, then you should store some gold or silver.

Not My Real Name's picture

"When the dollar dies you won't be able to 'buy' anything with your gold."

You may want to retract that assertion -- because its false. I think you understand that it's false too because, in your very next sentence, you rightly note that gold will be used "for barter." What you're actually describing is gold being used as money -- just as it has been for the last 5000 years. In fact, gold's primary utility is its use as the ultimate form of money.  

 

 

 

dark pools of soros's picture

gold will be good to pay off your mortgage but good luck with utilities

 

Infocat's picture

Let us hope this bull market has indeed started! http://www.truthjustice.net/

Dame Ednas Possum's picture

Piss-off with the spamming numb nuts.

TradingTroll's picture

Ok so I bought the correction when gold dropped from$1900 to $1600. My estate wants to sue for shitty advice. I

knukles's picture

Tell 'em you're dead.  That'll get them off your back.
Just like when the Solar people call.  I tell them we can't use it here, because we don't have any sun

No, not cloudy.  I said that we don't have a sun.
Yes, we do a lot of reading by earwax candles.

Casting about in the dark, I seem to remember my many troubles with those "You are here" arrow signs.
Last time I followed one I wound up with a bunch of Unicorns in the adult midget transgender bathroom in Disney's Magic Kingdom

Dragon HAwk's picture

Ha Ha, I use that we don't have a Sun here line also,

sleigher's picture

You should tell them there is a solar farm nearby and they used up all the light.

hxc's picture

Sucked up all the light, right out of the sky i tell ya! Now it's always dark. I run my lamps on diesel powered generators (1 each, it's a big house) and send my kids to work in the coal mine in my backyard. Sometimes they find gold too. I feed them MRE's and buy em silver teeth when they break em playing airhockey in the middle floors of the smokestack. Primary means of payment for working in the radioactive pools of molten sludge.

 

See how the solar telemarketer responds to that, I don't get any unfortunately.

lasvegaspersona's picture

Paper gold cannot (should not) be compared to a time when physical gold actually changed hands.

This is just a sales pitch.

Surging Chaos's picture

I'm actually more interested in where silver goes. If anything I think it has a higher ceiling than gold.

ejmoosa's picture

And I am interested in just how long these purchasers of dollars will continue to do so.  Until that irrational behavior comes to an end, we will not see any rational pricing in the PM markets will we?

I would have never believed what I have seen so far had I not lived it.  Rickards says the confidence will be lost rather quickly.  I cannot get what the hell is taking so long.

adanata's picture

 

When you are listening to Rickards always remember you are listening to the CIA/Banks and respond accordingly.

Herd Redirection Committee's picture

In our lifetime they always mentioned the Nazis grip over pre WWII Germany as the perfect example of mass conditioning.  In our children's lifetime, they will mention the grip the Fed and US Dollar (unbacked! unbacked, can you believe it) had over the ENTIRE WORLD!  Mass delusion!

How different is the USD bubble from the Tulip Craze or South Sea Company bubble really?

galant's picture

When you are listening to Rickards always remember you are listening to the CIA/Banks and respond accordingly.

What evidence do you have for your allegation that Rickards is a CIA/Banks mouth-piece?

I’ve read all his books and would describe him more as a Goldbugs’ gum-shoe –

He’s long argued gold as money, not a commodity, and that it will prevail against fiats – you think the banks like him throwing around figures like “$10,000 an ounce”?

He was there with the early GATA  stalwarts arguing that the evidence for manipulation of the gold market was overwhelming long before many had any idea what they were talking about.

If you know otherwise, let's hear it.

OverTheHedge's picture

Worldwide, central banks are buying anything not nailed down. Investors seem to be "selling into strength", or selling to the greater fool, whichever. Where is that cash going? It has to go somewhere, and with large deposits paying negative or being refused, there are limited things to buy.

We were living in interesting times; they just got fascinating. We will be moving shortly to astonishing, followed by ?

Kirk2NCC1701's picture

The silver lining in the lead cloud of Ag prices, is that in the long run Ag prices will rise.

Your life expectancy however, will not. Odds are that you may have to vote from street corners and roof tops, rather than voting booths, to see that happen and for your life expectancy to exceed that of PM manipulators.

sandhillexit's picture

Yes, I been thinking about starting the "Silver Party" like the Green Party, except it would actually get stuff done.  It would organize at the state level, giving it leverage with the electoral college. The Silver Party would have  a very simple platform: safe food (like the Italian Slow Food manifesto), silver coinage, the US is the largest producer of silver and for some reason we don't use our own stuff....The other four "great powers" would be Peru, Poland, Australia and Argentina. cool, eh? ) and a repeal of the 17th amendment, (so that Senators are actually selected by the state legislatures.  Then we wouldn't have these bozos in national government. )  That's it, the whole platform.  Pick competent young people who run for state offices only. It will take 20 years but if we start organizing now, we might be ready to pick up the pieces when the phoney-baloney ends.   I think if we do those three things American ingenuity will take care of the rest.   

TheRideNeverEnds's picture

What happens next depends on whether or not the FED includes gold and gold stocks in the basket of assets they buy for the next phase of QE.  Sometime late this year or early next they will start outright purchases of corporate bonds and stocks.  

Exactly how this will come  remains to be seen.  Maybe it will be part of President Clinton's private pension plan to setup all Americans with a ""Retirement Plan"" whereby the government buys securities of their (The Clinton Foundations) choosing on our behalf to be given to us at a later date subject to terms subject to change....  Maybe it will be because Trump won and they crash the market on him then come in to ""save the little people from evil Donald"" by buying stocks from themselves and giving them to themselves.  

We will see, its coming though.  

WhackoWarner's picture

FED will never buy gold or gold stocks. Unless Ft. Knox is found to be empty; unless they are audited; not unless the whole charade is exposed in all it's glory.

 

Crash Overide's picture

Short Weiner, long gold.

0Theorem's picture

maybe long weiners short paper gold?

Tyrone Shoelaces's picture

How did you know i have a short one?

CHX's picture

Exchange green toilet paper for a yellow dildo.

Consuelo's picture

 

 

Nothing changes until a certain mercantilist 'currency manipulator' decides the when/where/how of tying their currency to gold and silver.   The other 'evil empire' too, but Genghis Khan is going to have his day first. 

GoldMiser's picture

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