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.