Gold As A Pet Rock

It's International Pet Rock Day! Please read this FREE, public post.

51
Wed, Jul 17, 2019 - 10:32am

Yep, it was four years ago today that the Wall Street Journal's infamous gold troll, Jason Zweig, wrote his masterpiece of idiocy. Let's celebrate that anniversary today as "Pet Rock Day"!

We might as well begin with a link to Jason's crowning achievement. Here's his seminal piece in all its glory: http://jasonzweig.com/lets-be-honest-about-gold-its-a-pet-rock/

Here are just a few of the gems penned by Mr. Zweig that day:

  • "It is time to call owning gold what it is: an act of faith."
  • "Own gold if you feel you must, but admit honestly that you are relying on hope and imagination."
  • "Gold bugs...often resemble the subjects of a laboratory experiment on the psychology of cognitive dissonance."

This garbage appeared in the weekend edition of the Wall Street Journal on Friday, July 17, 2015. Price closed that day near $1130. Not coincidentally, the price of Comex gold was smashed for nearly $50 on the Globex Sunday evening, July 19, 2015 and price fell to near $1080.

Since that point, through fits and starts, rallies and smashes, Comex gold has gained $335 as I type for a total gain of 31%. Not bad for a "pet rock" that simply sits on a shelf and collects dust.

To be fair, Jason's beloved "stock market" is up 41% over the same time period...so he's got that going for him. However, let's see where we are on the 5-year anniversary...

OK, back to business. Today's datapoint was housing starts and building permits. It was dreadful: https://www.zerohedge.com/news/2019-07-17/building-permits-plunge-most-3... And check today's list of updates on the surge in negative-yielding global debt:

All of this has led to a rally in bonds:

And with bonds up/yields down, Comex Digital Gold is up, too, but only a little. I have a last of $1412.

The big winner again today is Comex Digital Silver. It reached an earlier high of $15.89 and I have a last of $15.87, which is up another 19¢. As you know, I've been waiting for $15.80 since June 20 so, when price finally hit that level an hour ago, I booked some profits.

And why was $15.80 always my initial target? Do you recall the trendline that dates all the way back to when The Banks first smashed the 200-week MA in September of 2016? Check where it is today:

So, let's see what happens next. Maybe price will charge straight through and head to the 200-week near $16.20? However, we're going to need a WEEKLY close above that line before we can call it a breakthrough. Thus, I'm going to be watching closely, expecting a small pullback. IF that comes, then what to do? I'm not sure yet but will keep you posted.

As I close, I've got $1415 and $15.87 with the HUI up over 202. Very nice. Have a great day but be sure to check back later for your daily podcast summary and review.

TF

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  51 Comments

Stevediva
Jul 17, 2019 - 10:41am

On xmas eve 1968...

Evening news broadcast let us know that Apollo 8 and its crew were orbiting the moon.

nearly 51 years later we cannot leave the Earth's orbit.

Ok..no more posts from me on the moon.

Marcus
Jul 17, 2019 - 10:50am

silver

Sorry I missed all of yesterday's "Moon talk", but this says something about where I'd like to see some of the dogs in my portfolio go to, now that silver is rearing it's head a little.

Fly Me To The Moon (Remastered)
SpartaQuse
Jul 17, 2019 - 10:52am

Hard not to like PM's right now

hanging steady & strong so far today - there is a lot happening out there - $21 Trillion missing - Debt still increasing every day - the system is breaking, IMHO

Jul 17, 2019 - 10:56am

these two go hand in hand

I'm sure this level of discourse and political comity will lead to a quick resolution of the current and looming US debt ceiling issue...https://t.co/UIBG8WNEVS

— TF Metals Report (@TFMetals) July 17, 2019
indiana rod
Jul 17, 2019 - 11:00am

Blue Moon

Blue Moon?

You saw me standing alone

Without a dream in my heart

Without a love of my own

With all the moon talk it reminded me of this old favorite we played every time. The best arrangement was the 4 Trombones playing 4 part harmony.

Where have all the syrupy love songs gone?

Thanks to silver breaking through, I made sone money with my A G July 8 Calls.

AgstAger
Jul 17, 2019 - 11:05am

Craig,

What will it take in your mind to confirm the breach of the 200 day in silver? One close above? Two closes above? Weekly close above? Just curious.

AgstAger
Jul 17, 2019 - 11:35am

Going to need at least TWO

Do you recall this chart from a year ago??

And it's not just the 200-week. CDS will need to break above the PRIMARY trendline and close above $17 before we can get carried-away excited. This chart from last Friday:

eastofwest
Jul 17, 2019 - 11:36am

Oh for crying out loud ...

If it snorts like a Bull ... And rages like a Bull ... And charges like a Bull ...

Jul 17, 2019 - 11:46am

yowza

updating the 1-mo CDG chart we've been tracking

Ozymandias
Jul 17, 2019 - 11:48am

Thanks for the link to

Jason's pet rock article. http://jasonzweig.com/lets-be-honest-about-gold-its-a-pet-rock/

I just checked my stack and it did not grow overnight but it hasn't shrunk on the down days either.

I'll just keep stacking.

P.S. I wonder if Jason thinks we really went to the moon<g>.

Key Economic Events Week of 11/11

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11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
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11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
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Key Economic Events Week of 11/11

11/12 Three Fed Goon speeches
11/13 8:30 ET CPI
11/13 11:00 ET CGP on Capitol Hill
11/14 8:30 ET PPI
11/14 Four Fed Goon speeches
11/14 10:00 ET CGP on Capitol Hill
11/15 8:30 ET Retail Sales
11/15 8:30 ET Empire State Manu Index
11/15 9:15 ET Cap Ute and Ind Prod
11/15 10:00 ET Business Inventories

Key Economic Events Week of 11/4

11/4 10:00 ET Factory Orders
11/5 9:45 ET Markit Services PMI
11/5 10:00 ET ISM Services PMI
11/6 8:30 ET Productivity & Labor Costs
11/6 Speeches by Goons Williams, Harker and Evans
11/8 10:00 ET Consumer Sentiment
11/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 10/28

10/30 8:30 ET Q3 GDP first guess
10/30 2:00 ET FOMC fedlines
10/30 2:30 ET CGP presser
10/31 8:30 ET Personal Income & Spending
10/31 8:30 ET Core Inflation
10/31 9:45 ET Chicago PMI
11/1 8:30 ET BLSBS
11/1 9:45 ET Markit Manu PMI
1/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

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