Spot Prices and News Summary
Realtime Spot Charts
Market Brief: A multi-year bull market
05/29/2016 Gold declined throughout last week, falling from a Sunday night high of 1255 to a Friday afternoon low of 1207, and closing down 3.1% on the week as the dollar index firmed. Silver spiked higher Thursday morning and briefly touched 16.56, above the previous week’s close; it then fell and closed down 1.8%. Miners closed down 8.1% (HUI). The gold-silver ratio ended at 74.4, down from 75.7, as silver outperformed.
The 4-week correction has so far been moderate, with gold down 5%, silver 9%, and HUI 15%. We have no idea how much further this correction will go (there is support for gold at 1190 and 1180 and 20-21 for GDX), but with silver now outperforming, a bullish factor, we will be looking to replenish investment positions in miners in anticipation of bottoms forming sooner rather than later — though a revisit of the recent highs any time soon is unlikely. We consider it unlikely that the Fed will raise rates in June or July and expect the dollar’s recent strength to dissipate, freeing precious metals to resume their rally.
The Liberal Theology of Gun Control
Guns are what you talk about to avoid having to talk about Islamist terrorism. “Instead of debating the antiterror policy of the past seven years, we’re all arguing over gun control. Then again, if you were Mr. Obama or Mrs. Clinton, isn’t this the debate you’d prefer?” William McGurn, WSJ (image: Getty)
Why would anyone want a firearm? “Self defense, Locke wrote in his Two Treatises of Government, is a part of the law of nature and in consequence cannot be denied the community, even against the king himself.” Charles C.W. Cooke, National Review
Gold: Barbarous RelicCash or Gold? You decide. Watch full-screen.
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my Country. Corporations have been enthroned, an era of corruption in high places will follow, and the money power of the Country will endeavor to prolong its reign by working upon the prejudices of the People, until the wealth is aggregated in a few hands, and the Republic is destroyed." — Abraham Lincoln, Nov. 21, 1864
The Fed Sets Another Trap "In these days of froth, the persistence of extraordinary policy accommodation in a financial system flooded with liquidity poses a great danger. Indeed, that could well be the lesson of recent equity- and currency-market volatility and, of course, plummeting oil prices. With so much dry kindling, it will not take much to spark the next conflagration." --Stephen S Roach, Dec 23, 2014
The Fed’s balance sheet is a pile of tinder, but it hasn’t been lit … inflation will eventually have to rise.
Where will the price of gold be in 5 years?
Greenspan: “Measurably.” (New Orleans Investment Conference, Oct 25, 2014)
Mercenary Musings: "We should always be cognizant that gold is the only real money and its true value is never subject to the decrees, fiats, machinations, whims, let alone the dreams, fantasies and whimsies of elected and/or autocratic national governments." — Micky Fulp