1) after the big short raid on gold in early 2013 the paper markets actually supported the $US1,200 level for a lot longer than the balance of gold in large gold ETF's. In fact as gold continued to flow out of those products at a rapid rate, the $1,200 gold level held for quite a long time, as support, before temporarily breaking to the lows we saw in Dec 2015.
2) Inflows into gold ETF's have reached historical levels since January of this year and those inflows won't easily be reversed over night.
Those two facts taken together give me a lot of confidence that the gold play is still strong, just not advancing at the lightening speed that most people wish for.
Then you have this strange transient situation with the reaction of the markets to the Chump speech. First futures were pointing down hard and then then market rallied.
The Chump's plan is not an endorsement of the function of the markets. In fact it is the complete opposite because it says we give up on the financial systems ability to allocate capital properly to create benefits for the people, instead we now plan to socialise any government debt that is created in the future to build roads, hospitals etc.
Would the market left to its own devices invest in roads, hospitals etc ? No bloody way would it do that. The money left in the hands of the banksters only finds ways of perpetuating itself in the Wall St casino. When PE multiples are stretched to the limits, as they have been for years now, they just create new products so that the money appears to breed more money.
And how can fortress America be good for Americans or the world? Just turn on the news last night........we had protests in South Korea. People marching against the President again. The trade unions in South Korea have a history of never going on strikes. Now they have strikes and people are marching against the president. We are talking about hundreds of thousands of people.
You'd know also of the great masses of disgruntled American voters that have mobilised to the streets in disgust over the Chump victory, particularly in the great cities built by the banksters and the mob or aren't they just the same thing. (NY, Chicago and LA).
Then you had big rallies in Florence yesterday to support the North League candidate Matteo Salvini as he positions himself alongside others like the 5 star party's Beppe Grilllo's to take Renzi down.
These shake downs of the European elites will be happening right across Europe, putting the Euro at risk as a viable currency for the future.
Then let's look at Aleppo where the Syrian army (aka Putin) is again making gains in this never ending war of destruction and suffering.
"Defence Ministry spokesman Major-General Igor Konashenkov said Saturday such aid had been blocked by the insurgents during previous pauses in the fighting, which "showed that assurances of UN representatives about 'preliminary' agreements with militants in Aleppo are just words".
"Our sources in Iraq state that the casualties of American troops are constantly growing: today the number of killed reached 20 while the number of wounded rose to 32.
All of this happened against the background of the ISIS counter-offensive. According to Al Jazeera, to the east of the city, militants are attacking the coalition troops using mortars and car bombs. Thus, the US special forces, fighting in the front line side by side with the Iraqi army and Kurdish troops, take the brunt."
US special forces demand more resources, fewer missions from next president
Sure everything is just fine, no need for any safe haven assets in the world anymore.
Well let me know what outside of gold you are buying @AverageJoe and I'll take a look. But don't refer me to the front door of a bucket shop please because that's not investing.
Eshmun
NST Price at posting:
$4.15 Sentiment: Hold Disclosure: Held
(20min delay)
