Gold bugs, be not saddened

What is happening to gold lately and today is heartening

It’s been my favored scenario for becoming a gold stock bull. It goes like this…

  • Inflation touts go over the top, include gold bug inflationists touting silver, copper, hogs, oil… gold!
  • The Fed is not listening to anyone humping deflation. It is listening to the bond market and dead set on destruction…
  • Inflationists are being addressed by the market as tout after tout weakens and in some cases, fails.
  • The favored view is for a final capitulation of the inflationists including those bugs who see gold as an inflation instrument other than over the longest time frames.
  • You buy gold stocks amid liquidity crises, deflation and generally whatever’s bad for the inflated macro.

But please, no belly aching about how gold is losing key support in the 1680 area (+/-). Those of us with flesh wounds from the past know exactly that this is how precious metals corrections often end. I call it the final running of the bugs and it can be glorious if you’ve anticipated it. If it happens, I will have anticipated and am also anticipating glory to come.

But understand that nothing is happening to gold that is not happening to other commodities. As an example, here is the ancient monetary metal actually holding the SMA 50 in relation to primary mining cost input, crude oil (GLD/USO). Not bad, eh?

In NFTRH we’ve been noting… “it’s a process” and “patience”. So far, so good.

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6 thoughts on “Gold bugs, be not saddened

  1. On the Wkly, look out for outperformer gold miners (not minors, or you’re in trouble, dudes).

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