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Gold should go much higher in 2017 as short covering indicator has always led to rise in price

Discussion in 'Gold Silver (All things Metal)' started by Flight2gold, Jan 11, 2017.



  1. Flight2gold

    Flight2gold Silver Member Silver Miner Site Supporter ++

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    In this era where nearly everything in the financial system it rigged, manipulated, or controlled by a central bank, common indicators like fundamentals and technicals no longer are of much value when determining what direction an asset will go.

    In fact, besides controlling the currency and bond markets through the massaging of interest rates, the equity markets are managed by an entity known as the Exchange Stabilization Fund, and the commodities are rigged through paper contracts in the futures markets.

    So when doing one's research on what should be profitable to invest in, it is the direction of the manipulation that is most important, not the data provided on a company's balance sheet.

    Ie... Don't Fight the Fed.

    Yet with that being said, one of the 'new normal' indicators tied to gold is suddenly rearing its head, and historically has always led to higher prices in every given cycle.

    And what is that indicator? Short covering in the paper gold markets.

    But the biggest indicator that gold sentiment is improving is the falling volume of short bets… You see, investors are starting to sell their shorts on gold stocks. One of these is NovaGold Resources Inc. (NYSEMKT: NG), a $1.5 billion gold mining firm whose number of short positions fell 3.8% from 13 million to 12.5 million between November 2016 and December 2016. The improving sentiment is also clear from the recent performance of the Gold Bugs Short Index (HUISH). This index tracks the short positions on gold miners that don't hedge their long-term gold production based on gold price movements. It's down 12% in the last month, indicating that short interest in gold companies is falling as well. Following Donald Trump's victory in the November Presidential election, bullion banks crushed the gold price by dumping nearly three years of global mining output onto the futures markets in just three days. But after this initial slam, using naked shorts to manipulate the price, these same banks began to cover previous short positions at lower levels and have since continued the process of covering many of their bets.

    Gold has moved higher since the start of the new year, and has even begun to disconnect from the dollar as the price has moved higher even on days when the dollar has strengthened. And as noted in the first paragraph of this article, old indicators no longer work when markets are dictated by the actions of those who manipulate and rig the markets.

    http://www.thedailyeconomist.com/2017/01/gold-should-go-much-higher-in-2017-as.html
     
    andial, Scorpio and TAEZZAR like this.
  2. Flight2gold

    Flight2gold Silver Member Silver Miner Site Supporter ++

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    The video at the link is a sell job for futuremoneytrends.
    The indicator may be valid though.
    GDXJ and SLV don't show a decrease, 27% and 10% increases in shorts respectfully.
    NG, Nova Gold, does show a 5% decrease and CDE, Coeur Mining Incorporated,
    shows a 5% decrease.
    Haven't checked many others.
    Just type in the symbol.

    http://shortsqueeze.com/?symbol=cde&submit=Short+Quote™
     
    Last edited: Jan 11, 2017
  3. goldielox1

    goldielox1 Seeker Seeker

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    Yes I've been saying that for years. People trying to look at charts and graphs and elliot waves on a manipulated commodity like Au is foolish. Some of that may work in the short term as banksters probably aren't focusing on minor day-to-day movements as much as long term trends and levels.

    The main thing I look at is. Is it undervalued based on my criteria? And is it becoming more and more difficult to manipulate so that the banksters could lose control, or at least have to set a higher ceiling?

    IMO both are resounding yes's. The paper-to-physical ratios are astronomical and growing. The international turmoil is growing. Au is an international market (which is the flaw of guys like Harry Dent). He looks at US demographics and thinks he can predict Au in $. If one nation or region panic (say India), Au will skyrocket in $, regardless of what US demographics or what Americans think of it. Dent doesn't get that.
     
  4. Flight2gold

    Flight2gold Silver Member Silver Miner Site Supporter ++

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    Being a manipulated commodity is exactly the reason that you observe trends that would be outside the norm.
     

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