Gold Has Been on A Tear All Year

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Gold Has Been On A Tear All Year

Posted with permission and written by Rory Hall, The Daily Coin

 

 

Gold Has Been on A Tear All Year - Rory Hall

 

 

The way gold has been moving the past few weeks, it’s easy to overlook the 11% growth it is enjoying during 2017. As we move towards year end, we see gold has been flat while suffering attack after attack from the banking cabal. The charts over the past ten trading day have these massive waterfalls that are intended to frighten traders. A few years ago this worked like a charm - today, not so much.

 

While these waterfalls make the chart look horrific, if you look just past where the attack ends, you will see a reversal. Not just a reversal, but over the past ten days, close to a 100% reversal. This shows just how the “strong hands” are not letting go and not being shaken at all from their stance. The word is out – gold is where it’s at and physical gold is really where it’s at.

 

We have one more Federal Reserve meeting scheduled for the second week of December. We can only hope Fed Chairman Janet Yellen aka Mother Felon does her thing and raises the Fed Rate by another 0.25% – 0.50%. If this happens we expect a similar reaction as has happened in January 2016 and January 2017.

 

  • On December 15, 2015, gold bottomed out at $1,049 (on the London pm gold price fix) the day after the Federal Reserve raised rates for the first time in almost 10 years. Gold immediately took off and rose by almost $200 per ounce to $1,241 in less than two months (by February 11, 2016).

  • On December 20, 2016, gold bottomed out at $1,125 on December 20, shortly after the Fed raised rates again. Gold then rose gradually to $1,257 in February and $1,346 by the next September.

It could happen again this year. Even if gold fell to the low $1,200s range, it could take off again in late December. That’s the theory of the Commodities Corner column in last week’s Barron’s. First, the article points out that gold rose 8.6% in 2016 and is on track to gain over 10% in 2017, so each year’s low gold price is higher than the previous year’s low. Then, Barron’s explained that speculative gold traders tend to ‘short’ gold in advance of the FOMC meeting and then cover those shorts when the Fed meets. Source

 

We are hoping Mother Felon signals that 2018 is going to another great year for gold. Keep your eyes and ears open for the Fed Chair to, hopefully, announce an early Christmas present on December 12-13. The only question that remains is whether she will or she won’t do as she has done the past two years.

 

Starting last Sept. 20, immediately after the Fed’s “pause” on rate hikes, the market began to price in a Fed rate hike for December. Asset classes adjusted in line with those expectations.

Treasuries, gold, euros and yen all fell. Bond yields and the dollar both rose. Tight money was on the way.

The problem is that the markets have now priced in a 100% chance of a Fed rate hike in December. You can’t get any more sure of yourself than that. This means that Treasuries, euros, gold and yen have all found a bottom.

They’re just waiting for confirmation from the Fed in a few weeks. As I said, markets are waiting for Godot.

This sets up one of my favorite trading situations. I call it the “asymmetric trade.”

When something is fully priced, the happening of the event does not move prices. But if the event does not happen, prices move violently to reprice for the unexpected outcome.

This means you have a “Heads I win, tails I don’t lose” situation. Source

I agree people that are holding physical gold, and not an illusion of gold like GLD, it’s a “Heads I win, tails I don’t lose” scenario. While gold is still under the control of the West, gold is nothing more than a hostage and does what it is told by its capture. Gold, in our opinion, is going higher: not just higher, but much higher from where it is currently. Will the next “gold master” allow it to roam free? We doubt it - we just hope gold has some breathing room and the leash is slightly longer than it is today.

 

The global monetary system is beginning to change. Gold is going to be part of the change and a major player in the future global trade system. If one simply reviews gold through the lens that is the countries in Mackinder’s Heartland, you will see nations scooping up gold with both hands. These nations are members of the BRI, EAEU, SCO, AIIB and the endless list of economic and military alliances that are currently developing and solidifying their future economic growth. The picture is very clear – gold, probably on the blockchain or some form of new fintech, is going to be included in the future of global trade. The major players, Russia and China, are making this crystal clear. How we get to the new system is the question of our life time that could have a very ugly answer.

 

We will continue holding physical gold and encouraging people to research reasons to hold physical gold. As we see it, our financial insurance policy increased by more than 8% in 2016 and another 11% in 2017 and is poised to continue to post gains over the next few years. Either way, gains or losses, insurance is insurance and only works if you hold it. We choose to hold it.

 

Questions or comments about this article? Leave your thoughts HERE.

 

 

 

Gold Has Been On A Tear All Year

Posted with permission and written by Rory Hall, The Daily Coin

 

 

 

Check out these other articles by our contributors:


Steve Rocco - Global Silver Investment Demand Maybe Down, But Still Double Pre-2008 Market Crash Level

Dave Kranzler - The Debt Bubble Is Beginning To Leak Air

Craig Hemke - Does The CoT Structure Prohibit A Rally?

Sprott Money's Ask The Expert - Danielle DiMartino Booth

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kuro_neko's picture

nobody cares anymore about Gold...

Bitcoin Gold however is up 37% today... check here

https://www.bitfinex.com/t/BTG:USD

LOL

milo_hoffman's picture

Much more upside in PM for 2018, than  in BTC which has already gone up 500%.

JibjeResearch's picture

Gold ?

BAwahah ahahahh ahahahah

Clock Crasher's picture

As long as the crypto space is rallying Gold will suffer. 

As long as the growth space is rallying Gold will suffer. 

Gold is only up 10% this year because of USD/JPY action and North Korea. 

Gold is 450 days seperated from its previous higher high (Aug 2016) and is +/- 0% since the 2016 president election. 

Think about it.  

Gold will rally and the debt will be revalued/devalued but it makes as much sense for this to go on for another year as it does that this go on for another ten years.  It makes as much sense that gold go to 2000 from todays levels as it does make as much sense that gold implode to tripple digits over many months before going to 2000. 

You feeling lucky?  Well do ya, punk? 

Yellow_Snow's picture

Wow, what a ride gold has had, whew... glad I had my seat-belt on !!!

Tyler's I hope 'Sprott Money' pays well for such lame infomercials

Pearson365's picture

The last three years gold hit the yearly bottom in December.  The fact that it's not looking that way this year is tremendously bullish.

Honest Sam's picture

"Tremendously", eh?

Don't suppose you could quantify this?  

 

east of eden's picture

Gold goes up 0.8% a month, maybe, while bitcoin/eth/litecoin goes up 10% a week. The big boyz are trying to unload their gold because they know that not only is the FRN dead, but so are their holdings once the system collapses. Don't forget, in70 AD when Rome sacked and burned Jerusalem, they were cutting 'them' open to get the gold they have swallowed.

Stick with the winners or stay with the 'momo' as they say. Besides, real inflation is already running well above 10% a year. 

I wish they would just stop with these damn articles trying to get people to buy the stuff they don't want.

Yellow_Snow's picture

In case you hadn't noticed (how could you not have) 'Uncle Jim' Willie lost his marbles...

Kefeer's picture

Actually it was December 17, 2015, not December 15th...but who cares...this is by no means "Gold on a Tear"...why does ZH allow advertisements disguised as articles...guess it pays the bills.