Find Out Why Gold Is Going Much Lower

Quite a few investors are passionate about Gold. And while their fundamental case that Gold must sell at much higher prices might very well be right, the market could care less about what people think. The market will do what it needs to do in order to hit important mathematical points of force.

Matt Demeter believes Gold will head much lower as the long-term bottom for the metal is not yet in. As a matter of fact, GOLD will have to fall quite a bit more before a bear market bottom is put in place. Please watch the video below for more information. The same type of an analysis applies to the rest of the financial markets we follow. To learn more about Matt’s work and Gold please CLICK HERE. 

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Find Out Why Gold Is Going Much Lower Google

Is Gold About To Fly?

Marc Faber thinks so. And while his view has been severly challenged, he believes that is about to change. At the very least, Marc believes you should be diversified into gold at today’s “give away” prices.

Finally, given today’s global currencies devaluation, it is just a matter of time before the dollar declines. A large commercial short interest against the dollar (COT Reports) is confirming this view. Take a look at the video below. It is worth 2 minutes of your time.

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Is Gold About To Fly?  Google

Is Gold Really Doomed?

Gold Is Doomed InvestWithAlex

It has been a while since we have touched on gold. However, when mainstream media outlets post idiotic gold headlines, headlines that should spark investor attention, it might be time to take another look. Here is what I am talking about…..

The Washington Post: Gold is doomed

When you think about it, a bet on gold is really a bet that the people in charge don’t know what they’re doing. Policymakers missed yesterday’s financial crisis, so maybe they’re missing tomorrow’s inflation, too. That, at least, is what a cavalcade of charlatans, cranks, and armchair economists have been shouting for years now, from the penny ads that run on the bottom of websites…..

Wow….a double whammy there. Not only does the author suggest that most Gold Bugs are idiots, he also suggests that Greenspan, Bernanke and Yellen are brilliant economists who not only know what they are doing, they have full control of the US Economy. I might have a big problem with all of the above, but let’s save that for another time.

Back to gold. The sentiment above represents how most investors view gold today. I don’t have to tell you that when “Gold Is Doomed” articles are published, we might be approaching a major turning point and a bottom. I tell you what, if my overall stock market forecast fires off as my mathematical work suggests, you will see gold surging over the next 2-3 years. Due to additional rounds of QE and flight to safety.

The primary question is, where/when is gold’s bottom? That is for you to figure out, but it is likely to coincide with the stock market’s top. And if you would like to get that information, please Click Here.

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Is Gold Really Doomed?  Google

Is Gold Dead Or Is It Bottoming?

Gold vs stocks

According to most market pundits, Gold is dead and you should buy stocks and real estate.

Gold is hitting new multiyear lows relative to the Standard & Poor’s 500 Index. J.C. Parets, a technical analyst at Eagle Bay Capital, notes: “This downtrend has been very strong over the past 30 months and is hard to fight.”

Yes, Gold is in a technical downtrend, likely to test $1,200 (maybe even lower) and the time to buy it is not quite here. Yet, to look at it from such a perspective is like looking in a rear view mirror.

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

All you have to do now is wait for Gold to bottom, break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.    

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Is Gold Dead Or Is It Bottoming? Google

Sell Gold & Buy Stocks: Stupidest Investment Advice Ever?

gold consolidation investwithalex

These bozos think you should Dump gold and buy stocks.

While this advice might not be as bad as to buy stocks on margin in October of 1929,  it is not that far behind. Now, before I go any further allow me to disclose that I am NOT a gold bug, bull, bear or any other label you can stick on someone. I am simply here to make money through the use of advanced mathematical/timing/fundamental/technical work and a risk averse trading approach.

While I do not own gold at the time (the timing is wrong), to tell someone to sell their “undervalued” gold right before its massive and sustained rally in order to speculate in stocks that have long detached from any reasonable valuation reality is…..well….idiotic.

In fact, if there was ever a trade that I would advice against, this would be it. I had a much more detailed article on Gold over last few days and you can check it out for a better overview As Gold Continues To Collapse, What’s Next?  In terms of equity markets, today’s situation is identical to the one at 2000 and 2007 tops and I wouldn’t touch any equity on the long side with a ten foot pole.

What do you think? Would love to see your comments. 

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As Gold Continues To Collapse, What’s Next?

gold investwithalex Gold is not doing very well. Down $41 or (-3.17%) over the last 30 days. More importantly, it broke an important short-term support level and is likely heading to it’s next strong support level located around $1,200.

What’s going on?  

Nothing, Gold is simply tracing out it’s exact structural pattern. As I have mentioned before, Gold will do very well over the next few years, but in order to make money your entry points must be timed perfectly. Simply put, the time to buy Gold is not here……just yet.

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

All you have to do now is wait for Gold to break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.    

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Will Gold Break Below $1,000 As Jim Rogers Suggests?

gold chart investwithalexTypically I would agree with Jim, but not here. While gold can certainly break down to that level, it has very little time left to do it in.

As I have mention before, my mathematical and timing work shows a clearly defined bear market and a severe recession within the US Economy between 2014-2017. When we look at gold from that vantage point we can anticipate the following setup for the metal this time next year (May 2015)….

  • The stock market is down 15-20%.
  • The US Economy is in an official recession.
  • The 10-Year Note is below 2%.
  • The FED is looking to stimulate or re-inflate markets in any way possible. All tightening talk is nothing but a distant memory.

With gold showing signs of building a base/bottoming and with the fundamental setup being identical to the one in 2007 (when gold went from $600 to $1,800) the probability is very high that Gold is getting ready to rally here.

Point being, for gold to decline to $1,000, it must do so immediately or over the next 3-4 months (maximum). That is why I continue to believe that the probability of gold breaking above $1,420 and surging higher thereafter is much higher at this juncture.

Gold bars

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Daily Ticker: Gold is a buy under $1,000 an ounce; here’s why it could get there: Jim Rogers

Gold is traditionally an investment of choice when inflation is rising or global tensions are growing. But this year, despite the conflict between Russia and the Ukraine, gold prices haven’t moved much, and inflation in much of the developed world is muted.

“I’m not buying gold at the moment,” international investor Jim Rogers tells The Daily Ticker. “But if the opportunity comes along — and it will in the next year or two — I will buy more.”

When The Daily Ticker’s anchor Lauren Lyster asked Rogers in the video above what such an opportunity might look like, Rogers said that a 50% decline in gold prices, to under $1,000 an ounce would justify buying the precious metal. (That’s a 50% decline from its record high just under $2,000 an ounce in August 2011.) But Rogers also says, “if America goes to war with Iran,” he’d be “begging to buy at $1,600 an ounce.”

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As of mid-day Wednesday gold futures were trading at $1,300 an ounce, or about 8% higher than the 2013 year-end close of $1,202. Gold prices fell a whopping 28% in 2013, but Rogers says a 50% correction every three or four or five years is more normal for an asset class, and therefore, a reason prices could fall from here.

As for why gold prices haven’t taken off this year, Rogers says demand from China, the number one consumer of gold, is declining because the market there is “saturated.” He says investors, meanwhile, would rather put their money into stocks. The Dow (^DJI) and S&P 500 (^GSPC) closed at record highs Tuesday but have since retreated, while the 10-year Treasury note price has advanced, as its yield slipped to 2.55%.

Will Gold Break Below $1,000 As Jim Rogers Suggests?

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What You Ought To Know About The Upcoming Gold Rally. This Is Incredible.

According to a consultancy out of London you should sell your Gold and seriously consider buying some Twitter stock(see the article below).

“Gold prices have probably peaked this year and could sink to their lowest since 2010 at $1,100 an ounce as the U.S. economic recovery gathers pace, consultancy Metals Focus said on Wednesday.”

Yeah, the US economic recovery gathers pace as it goes right over a cliff. 

Here is what I believe to be the best way to look at Gold and it’s price. Forget about the fundamental factors such as supply/demand and geopolitical events. From our vantage point, Gold’s technical/structural setup is identical to the one in 2007 when Gold went from $600 to $1,800 an ounce.

With our mathematical and timing work predicting a severe bear market between 2014-2017, the FED will have no choice but to introduce further stimulus in order to try and re-inflate our markets and the economy. When that happens, I would expect Gold to be surging higher, not setting new lows. In fact, I continue to believe that Gold will be one of the better investments out there over the next 3-5 years.

All you have to do now is wait for Gold to break out above $1,420 and we should be off to the races. Be patient now. Our timing work shows that the next stage of the bull market in Gold is just around the corner as it will be surging higher by around this time next year. If you would like more precise timing please Click Here.     gold investwithalex Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

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What You Ought To Know About The Upcoming Gold Rally. This Is Incredible.   Google

Reuters: Gold likely to reach four-year low in 2014 – consultancy

LONDON (Reuters) – Gold prices have probably peaked this year and could sink to their lowest since 2010 at $1,100 an ounce as the U.S. economic recovery gathers pace, consultancy Metals Focus said on Wednesday.

Weakness is likely to set in after an impressive start to the year, it said, when gold rallied to six-month highs. But a replay of last year’s 28 percent plunge, triggered by the U.S. Federal Reserve’s tapering of extraordinary stimulus measures, is not on the cards.

The consultancy also forecast that an eventual easing of tensions in Ukraine would add to a bearish trajectory for the market.

“In the short term, the U.S. recovery regaining momentum (thanks to improving weather conditions) and the eventual de-escalation in Ukraine are likely catalysts for lower prices,” it said in its Gold and Silver Mining Focus 2014.

“Meanwhile, the Fed’s ongoing reduction in its bond purchases, easing concerns about fiscal situations on both sides of the Atlantic and low inflation are all headwinds for the yellow metal for the rest of 2014.”

Robust demand from the major physical gold markets in Asia should help offset Western investors’ lingering caution in gold futures, derivatives and exchange-traded funds.

Chinese demand, which surged last year as prices fell, will remain strong, it said, though below the 2013 level. That, along with strength in retail demand in Western markets, helped drive a 35 percent surge in physical investment last year to 47.1 million ounces.

Jewellery consumption also rose 22 percent to 81.7 million ounces, while the volume of scrap gold returned to the market fell 26 percent to 39.3 million ounces.

That helped offset a 5 percent rise in output from gold mines to 96.7 million ounces, resulting in a 21.8 tonne structural deficit in the market last year, Metals Focus said.

That does not include outflows from bullion-backed exchange-traded funds (ETFs), however, which according to Reuters data totalled 26.354 million ounces last year. The strength of ETF outflows was a major weight on prices in 2013.

“Given plenty of above-ground inventory, other than a temporary shortage of kilobars in Q2, the gold market remained well supplied last year,” Metals Focus said. “Moreover, it is of note that ‘Western’ investors tend to set the price, while physical markets react to it.”

The consultancy expects silver prices to average just under $20 an ounce this year, not far from current levels but well below last year’s average of around $23.80 an ounce, as its fundamentals weaken.

“Global supply is expected to rise by around 2 percent, compared with a 4 percent drop in world silver demand,” it said. “The most significant change … is expected in physical investment, which is forecast to drop 11 percent.”

Is Gold Really Going To $5,000? My Answer Will Shock You

I have very little respect for Peter Schiff. His predictions and timing in the past have been notoriously wrong. Plus, from what I have heard his clients are losing a lot of money. With that said, his call for Gold $5,000 (see the article below) might actually hold water. Believe it or not, his prediction somewhat matches our forecast.

The macroeconomic setup for gold today is very similar to what we have experienced back in 2007 when the gold price ran up from $600 an ounce to over $1,800 an ounce over a 5 year period of time. Are we in for a repeat? I believe so.

As per our mathematical and timing work we are about to enter a sever bear market that will last between 2014-2017. With the US Economy in deep recession, the FED will be looking at any possible avenue to re-inflate the markets and flood the system with more liquidity. Not tighten. As you can imagine, collapsing equity markets and loose monetary policy by the FED are great drivers for Gold. As such, we wouldn’t be surprised to see Gold between $4,000-5,000 over the next 3-5 years.

Just as a quick note. Stay away from Crazy Perma Bears (like Peter Schiff) who expect an outright stock market collapse and the DOW 1,000. Based on our timing and mathematical work it’s not going to happen. Not even close. If you would be interested in learning exactly when the bear market will start (to the day) and its subsequent internal composition, please CLICK HERE

gold investwithalex

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Is Gold Really Going To $5,000? My Answer Will Shock You  Google

Market Watch Writes: Peter Schiff: Reckless Fed may push gold to $5,000

SAN FRANCISCO (MarketWatch) — Peter Schiff, chief executive officer of Euro Pacific Capital, has been known to make forecasts outside the mainstream, and his long-running belief that gold has the potential to hit $5,000 an ounce is no exception. Prices, after all, are struggling to get a grip on $1,300.

We caught up with Schiff to ask him how gold, a big disappointment for commodities investors last year, gets back its groove. Last year, gold futures GCM4 +0.79%   and heavyweight ETF SPDR Gold Trust GLD +0.59% lost 28%, breaking at least eight years of annual gains.

First off, Schiff’s gold forecast isn’t brand new. The author of “The Real Crash — America’s Coming Bankruptcy” has talked about the possibility of gold hitting $5,000 or higher since at least 2011, when prices for the metal topped $1,900 in intraday trading.

Schiff reiterated his call on the potential for $5,000 gold and beyond during a heated debate with Paul Krake of View from the Peak onCNBC’s “Futures Now” episodeposted on April 15.

In an email interview with MarketWatch this week, he offered his thoughts on exactly why he expects gold prices to continue to climb and under what circumstances, what it would take to change his bullish outlook on gold and whether prices for the metal have already hit bottom this year.

Here’s MarketWatch’s full email interview with Schiff that concluded Wednesday:

Q: Before this year began, what were your expectations for gold prices and how does that compare with the metal’s performance year to date?

Schiff: I thought that the selloff in 2013 was completely out of touch with reality, so I expected the price to rise this year. In this, I was virtually alone in the financial community. Just about every major investment house had predicted even more losses for gold in 2014.

So far this year, gold is the best-performing asset class, but I think the pullback we have seen over the last few weeks is just another indication of how much negative sentiment remains. Ultimately however, the fundamentals will prevail. The Fed will keep printing [dollars] and gold will keep rising.

Q: In a recent interview with CNBC, you said the Federal Reserve’s quantitative-easing program will push gold to $5,000 an ounce. Could you explain that a bit further? What’s your time frame for that forecast? [Watch: Gold bear takes on bug: ‘You’re miles off base’]

I believe the consensus expectation that the U.S. recovery is real and that the Fed will end its [quantitative-easing] program and normalize interest rates is wrong.

Over the past few years the Fed had become [a] serial mover of goal posts, delaying the decision to end stimulus more than anyone would have predicted. When the Fed has to admit that its forecast of a sustained recovery is wrong, it will come to the aid of a faltering economy with even more QE. When that happens, gold will rally.

Last year’s selloff was based [on] the expectation that a strong recovery will lead to tighter monetary policy, which would then undercut the reason for buying and holding gold. That is a false assumption.

Q: Could you offer your thoughts on other factors you see as most influential to the gold market this year, including China?

A renewed weakness in the dollar and strength in oiland other commodities will add to gold’s appeal during 2014. Also, any major geopolitical concerns, particularly if there is a deterioration of the situation in Ukraine, will add to gold’s appeal. I also expect renewed physical demand from emerging markets like India and China.

The World Gold Council recently forecast that Chinese gold demand will rise 20% by 2017 from the current level of 1,132 metric tons a year.

Q: What might alter your bullish outlook on gold?

Gold would certainly be hurt if the Fed surprised the markets by actually ending QE and tightening policy. But that is very unlikely to actually occur.

Q: What would you say to investors who are discouraged by gold’s performance so far this year? (Futures are prices up around 7% year to date, but only partially making up for last year’s plunge.)


FactSetEnlarge Image

Be patient. Many investors in the 90’s believed that gold was a dead asset class. But in the 10 years from 2001 to 2011, gold increased almost 900%. The moves come in waves.

Q: With prices currently under $1,300 an ounce, have prices hit bottom for this year? Is gold a bargain at these levels — is it a good time to buy now? Please explain.

Most likely prices have bottomed, as too many speculators are looking for lower prices. The fundamental case for gold has also never been stronger. From a gold short seller’s perspective, this will prove to be the equivalent of a perfect storm. Their losses will be severe. [Read about gold contrarians saying it’s time to start buying.]

How Long Before Gold Breaks Above It’s $1,900 Top? If True, This Will Disturb Most Market Participants

According to CNBC and after losing over $1 Trillion in value over the last few years……NEVER. Yet, we are a little bit more optimistic. Our case is very simple. Based on our mathematical and timing work, there will be a severe bear market (2014-2017) and a subsequent deep US Recession. Stocks will collapse, economic growth will come to a halt and the FEDs will be forced to inflate/stimulate in any way that they can. As you can imagine, Gold does very well in such a “Risky, Volatile & Inflationary” environment. 

While we do not have the mathematical composite breakdown for Gold (as we do for the stock market), we can look at our stock market guidance to connect the dots. As such, we would expect the US Economy to be in an “official” recession by this time next year and FEDs talking about or already infusing further stimulus. Therefore, we would expect Gold to be approach/breaking $1,900 by the end of 2015 at the latest.  

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How Long Before Gold Breaks Above It’s $1,900 Top? If True, This Will Disturb Most Market Participants  Google

CNBC: Will gold ever recover from its ‘$1 trillion crash’?

This week last year, the price of gold (Exchange:XAU=)suffered a 15 percent drop inside two trading days. It was a volatile year for the precious metal — 2013 finally put an end to a 12-year bull run. And that is unlikely to be reversed no matter how volatile the markets get, analysts have told CNBC.

Gold has been trading near two-and-half-week highs and is on track for its best week in a month as equity markets have been hit hard and tensions continue to mount in Ukraine.

Read More As gold hits 6-month high, traders look to Crimea

In the near term, analysts have said gold is an obvious play as stocks around the world have had a challenging week, with the Nikkei (Nihon Kenzai Shinbun: .N225) suffering its worst week since Fukushima and U.S. and European technology stocks seeing heavy declines . Spot gold traded close $1,319 after three days of gains, peaking at $1,324 on Thursday.

“Investors are becoming more defensive, we have seen equities come off and that is where the value of gold really shines for investors,” said Martin Arnold, director and research analyst at ETF Securities.

Read More Gold suffers worst November since 1978 

But Arnold added that market volatility would ultimately not be enough to drive the price of the metal consistently higher – and this is down to Asia’s weak demand.

“We saw last year that the strong physical demand came in when the gold price slumped, but in the current lack of strong investor demand, you can’t expect very strong price gains. We expect a modest move higher this year – but see better opportunities in the commodity space, particularity with other precious metals with more industrial application,” he told CNBC.

At its peak in September 2011, gold topped $1,900. Investors who had hung on to the metal in the decade up to its all-time high would have seen a sevenfold increase in its price, or gains of 575 percent.

Read More Gartman on Gold: We’ve Never Ever Seen Anything Like It 

Beat Wittmann, CEO of TCMG Asset Management said the metal has been treated as “nothing more than a hedge in the last two years,” but as interest rates are relatively low at the moment, the opportunity cost of gold is not too inhibitive for investors.

“There are people that don’t want to be in credit or equities for structural reasons, gold then is a valid asset class. As long as we are in a very low interest rate environment, the alternatives are not very attractive, so the opportunity cost to hold for a lot of people is still OK,” he said.

The $1 trillion crash

The collapse of the gold price in April 2013, which saw the yellow metal sink below the key psychological level of $1,500 an ounce, was what Adrian Ash, head of research at BullionVault describes as the “$1 trillion dollar crash”.

“Gold lost one-tenth of its market value on Monday 15 April alone. That wiped the equivalent value of London’s entire housing stock off the world’s above-ground gold holdings,” he said.

Read More Why this top technician recommends buying gold now 

“Investors buying gold and gold derivatives because they expected gold to rise for 13th year running naturally took fright. But Investors still without it might ask what they’re missing in the bigger picture now gold’s rallied 10 percent already in 2014,” he said.