In covering the gold sector for my premium subscribers, I have noticed something lately. The large-caps really suck! Ok, that is harsh but it is the truth.
In the chart below I show the large-cap indices. What do you see?
The Dow Jones Precious Metals Index hasn’t gone anywhere for five years, ... Read More
chanakya
13
Jan2011
Wall Street seems particularly giddy entering the New Year, and for good reason: the stock market has had its best two-year performance since 1932. Retail investors are also beginning to shed their bear suits and slowly embrace a bullish posture. For the month of December 2010, a ... Read More
January 13, 2011chanakya
13
Jan2011
An upward sloping consolidation in Gold that began in October has, despite a lack of any real losses, been enough to improve various sentiment indicators.
Mark Hulbert of MarketWatch gives an update on his Gold sentiment indicator:
Consider the average recommended gold market exposure among a subset of short-term gold market timers ... Read More
January 13, 2011chanakya
10
Jan2011
Yesterday I came across a clip from one of the business channels. The discussion was about “king dollar” and Gold. (The king dollar probably gives it away). Anyway, one of the guests quipped, “I’m on record that Gold is a dumb trade. It is rising based on fear and confusion and ... Read More
January 10, 2011chanakya
05
Jan2011
Heading into 2011, the consensus outlook on precious metals is slightly positive but the consensus believes that higher interest rates will ultimately support the US currency and in turn engender a move out of Gold. The Gold naysayers are using “rising rates” as a way to dismiss Gold. Let me ... Read More
January 5, 2011chanakya
03
Jan2011
Investors have been liquidating bonds in the last few weeks which begs the question why. Are investors liquidating bonds in order to move cash back into stocks and other risk assets? Or is that money going under the mattress? On that score a recent news article provides ... Read More
January 3, 2011chanakya
16
Dec2010
Analysts and pundits provide various reasons for the bull market in Gold. This includes emerging market demand, low interest rates, money printing, central bank accumulation, central bank policies and falling gold production. These are all good reason but there is one reason which stands apart and will drive precious metals ... Read More
December 16, 2010chanakya
14
Dec2010
In the first phase of its bull market in the earlier portion of the last decade, Commodities began a bull market on the back of a falling US Dollar. The greenback declined while commodities, stocks, foreign currencies and even bonds rallied. The universal bull market could be better termed a ... Read More
December 14, 2010chanakya
12
Dec2010
The inflation versus deflation debate has raged for years but since the credit crisis the debate has become highly politicized. If the credit crisis taught us anything it is that the risk of deflation far outweighs that of inflation. Yet there is an entrenched view emerging in ... Read More
December 12, 2010chanakya
10
Dec2010
In past commentaries, I’ve written about my favorite form of technical analysis. That is intermarket analysis. Intermarket analysis takes traditional technical analysis much further. Normally, we’d look at a market by itself. We’d look at its price action, potential patterns and its momentum. Intermarket analysis takes this a step further ... Read More
December 10, 2010chanakya