SilverSanchez wrote:
a combination of date, decline, price supports and history is giving me the incling that gold stocks are starting to gain upward pressure.
One day is not enough, and the bottom may not be in on a number of the stocks popular on SS, but ive noticed some of the juniors have had some rallies, and the producers have rallied with volume. The stocks usually lead the metals higher (or allbeit bottom first) and smart money moves into the stocks first to take advantage of the leverage.
Macro-Snapshot
- Deflationary scare due to taper talk - sells down asset prices, selling gets more selling momentum builds - people move into cash (safe haven currency (USD) rallies NOTE: NOT SOVERIGN BONDS!!)
- Global slow downs in Australia, China, Emerging Markets, and US means taper talk is just that ... talk (reality hits the market)
- Inflationary moves by governments (interest rate cuts, no cuts to QE) to resist deflation (because they get less-no tax revenue in deflation because everyone is poor and out of work)
- People move out of cash into assets - safe haven currencies correct, asset prices (stocks, property, commodities) rally
These moves are not like turning a small hatchback - these markets are juggernauts they move slowly down to turn but accellerate out of the corner.
SO.... secular bull market in real assets has or is finishing a cyclical bear market and the secular bear market in fiate currencies is finishing is cyclical bull market
Bonds are primed for a serious fall - they have not participated in this flight to safety, which means smart money dont consider them 'safe' anymore - just look at the yeild spike recently.
As Jim Puplava says - Bonds peak first, then stocks, then commodities
This is just my musings, so please think carefully about it. Your money your decision.
Are you going to buy back into Newcrest ?