Spot Prices and News Summary
Realtime Spot Charts
Market Brief: A multi-year bull market
05/22/2016 Precious metals and miners fell sharply on Wednesday as the April Fed minutes suggested that a June rate increase was possible, which rallied the dollar index. On Thursday gold reached an early low of 1244, and silver hit 16.34., while the HUI miners index was down a further 3% at the opening after losing 8% on Wednesday. But prices quickly bounced, and gold, silver and HUI closed the week at 1252 (down $21), 16.53 (down 60 cents) and 216.49 (down 2.3%). The gold-silver ratio ended at 75.7, up for the third week, as silver continued to lose ground relative to gold.
Last week’s action may mark the start of a deeper correction, though we expect that buyers will keep gold from falling more than 5-6% from the recent 1306 top. If gold pulls back 5-6%, miners could correct 20-25%, in line with typical corrections in gold bull markets. A correction might reach a low in late June or July and would represent an excellent buying opportunity, Historical seasonality favors a bottom in late July, leading to higher highs at the end of September. To take advantage of a correction low requires trimming on strength in order to have cash available at the bottom.
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