Gold As A Pet Rock

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

50
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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  50 Comments

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zenharmonics
Jul 24, 2019 - 11:24pm

Pet Rocks

I did a fun little commentary on this one a while back.

https://leveragedpromise.com/2015/11/29/pet-

Lemming
Jul 17, 2019 - 6:03pm

Sled Dogs Running

This is only 20 miles into the 1,000 mile Iditarod. The dogs are fresh and eager, let 'em run.

This race may last 5 years....

SpartaCuseWizdum
Jul 17, 2019 - 5:03pm

it could be good !

let us know what he says - lol

MRob
Jul 17, 2019 - 4:53pm

This is worth a look

https://www.zerohedge.com/news/2019-07-17/ray-dalio-warns-new-paradigm-c...

Very long, I've not actually read it all but: Ray Dalio advising on paradigm change in the markets are recommending gold as the investment solution.

chudson
Jul 17, 2019 - 4:36pm

That's what Eric said back in May

With the Macasa (sp) mine coming on line, he thought they could hit $5.00/share in earnings. A 20X PE gives you $100.

Ozymandias
Jul 17, 2019 - 4:24pm

SIL puts

Thinking of buying short term SIL puts near the sweet spot in silver futures that the banks will try to push the silver price down to for closing out the next to expire silver contracts. Do we know enough at this point to try to figure out what price that is? When would the banks have to make their move to maximize their profits? Not seeking investment advice but I have been known to be a player in Vegas.

goldcom
Jul 17, 2019 - 4:07pm

Just read Craig's comment about Buzz Aldrin

Craig said something about his belief in guys like Buzz and watchout he might kick your ass.

Let me tell a story about Buzz whom I was introduced to at a salmon fishing derby in Westport, Washington in 72 or 73. Some of you may remember my comment some time back about my friend's Dad Medal of Honor recipient Robert E Bush. Bob was a very good businessman and for several years he invited Medal of Honor winners and other dignataries to his function. Yes, I got to meet some great ones like Jimmy Dolittle, Pappy Boyington, and Buzz at these events. I was a young 20 or so year old then wide eyed and somewhat overwhelmed meeting such personalities.

Now about Buzz and this was told to me by my friends brother Mick. After the derby Bob Bush put on a salmon bake for attendies where good eats and booze were available. Well Buzz got buzzed and when Mick took he and his wife to an upstairs apartment above a small lumberyard store Bob owned near the event for their overnight stay as they were walking up the steps either Buzz's wife stumbled or Buzz just got frisky but he swooped her up from behind under her buttox and proceeded up the stairway with ease, chuckling and laughing. It seems like he said with one hand but I might be remembering it wrong. Anyways Buzz probably would still kick some ass as Craig said.

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bently
Jul 17, 2019 - 3:56pm

Well stated Scoremore!

As Gary Savage noted -- a bull market is easier to trade than a bear. We've gotten our brains beaten out so often we find almost impossible to accept we may win. He also said the currencies are more important than the COT -- and with the dollar beginning to retreat again....

It appears the miners are leading -- higher here than when gold was $1240 a short time ago.

And while we often note that the cartel can seemingly short paper to infinity, they cannot take infinite losses. It would be instructive to know how much they will be losing if gold makes new highs from here....

Angry Chef
Jul 17, 2019 - 3:44pm

British Empire Perfidy Further Exposed, as Trump Steps Toward...

...a New Paradigm with Russia, China

Did anybody notice the Chinese sailed a Chinese Destroyer thru the English Channel the other day ? Not that that's illegal given Maritime Law. I wonder if that was directed at Britain or the City of London ? Hmmm....oh and by the way. After 1776. They never left.

The City of London is like herpes.

https://geopolitics.co/2019/07/16/british-empire-perfidy-further-exposed...

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