Gold? Silver? The Miners?....All Three?
While kicking around YouTube last night, I found this interesting video.
This video is an interview of Jay Taylor, who is an analyst and a radio host. He discusses the metals, the miners, the economy and even the gold standard and he does so from the point of view of a "Turdite" so I thought you'd find it informative and compelling. It might even be a good one to send along to family and friends who are "on the fence".
12:40 p.m. EST UPDATE:
I'm extraordinarily busy today so there is no time for a full, new post. However, as you've noticed, The Bernank has thrown us a few bones today in an attempt to talk up the stock market and increase his beloved "wealth effect".
I've noticed several requests for updated charts so I've posted them below. As we discussed yesterday, there are stages and hurdles in every recovery and the action today has boosted us through several. This is good as it greatly increases the pressure on the existing shorts, particularly those that were late to the game and were only sucked in last week. And that is where we will find our "critical levels".
First of all, we need to put today in the books without giving too much back. As I type, I've got gold near $1613 and it simply need to close above $1600 for our recovery purposes. IF we get something above $1615...even better! In silver, I really want to see us close above $29.20 and I've got a last of $29.34. Keep your fingers crossed.
As mentioned above, each metal now has a "critical level" and those can be found by looking at the price action since the beginning of the year. Recall that back on Jan 3 and 4, the metals were shoved lower and gold found a bottom near $1626. As price swooned two weeks ago, it became clear to nearly everyone that the $1626 level was going to be important support and, below there, the shorts would find plenty of sell-stops to harvest. Taking advantage of thin, overnight trading, The Bad Guys were able to swamp $1625 in U.S. wee hours of Friday, the 15th. Once below there, all sorts of tech-trading HFTs and momos were drawn into the short trade and the result was last week's cascade down to a low of $1555.
Almost all of those trades are now under water. If I were a fresh short, I'd be almost panicky here with a very itchy trigger finger. My only hope is that we stay below $1625 and then move back lower. In desperation, I may even double-down in the hopes of rescuing myself.
So there you have it. The "critical level" in this recovery is $1625. In silver, the commensurate point on the chart is near $30.20 so that is the other critical level. Watch them closely the rest of this week. WHEN price finally recovers through those levels, I expect a rapid return toward the levels sustained before the Chinese New Year, when The Forces of Darkness felt compelled to begin this current event...roughly $1670 in gold and $31.50 in silver.