Buy Signal in the PM Sector

By: GE Christenson | Mon, Apr 28, 2014
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It looks like gold and silver stocks bottomed on Monday April 21 and that gold and silver also bottomed this week.

Really? The usual reaction is, "the stocks have been hammered, gold is off over 30% from its highs and silver is down nearly 60%. Sentiment is low, few people are interested, and gold and silver will probably crash again in a few weeks."

Exactly!

We have been conditioned to expect lower prices, in spite of:

And don't forget that central banks everywhere are openly and excessively printing their paper currencies to encourage inflation, politicians are fomenting wars, and the global monetary system is more unstable every day. Accidents can happen and those accidents will justifiably encourage people to shift assets to something solid and real - like gold and silver. But you have heard it all before.

So, listen to an excellent technician: Nicholas Migliaccio does his own brand of technical analysis, and his comment is, "DON'T MISS THIS RALLY!!!" Why? Price movement, breadth, and volume, and he has the graphs and analysis to support his statement.

Download his pdf here: Precious Metals Buy Signal

Read his blog: Denaliguide's Summit
Also: Cartel Buster

My view is shown in these three graphs of daily data for the XAU (gold stock index), GLD (gold ETF) and SLV (silver ETF).

XAU Chart
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GLD Chart
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SLV Chart
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The XAU, gold, and silver look like they have bottomed. Asian demand is strong and we have been assured by central banks that they will devalue their currencies to create inflation. Gold, silver, and their stocks will benefit.

Consider Nick's article, ignore the nonsense that gold is dangerous, and buy coins or bars.

 


 

GE Christenson

Author: GE Christenson

GE Christenson aka Deviant Investor
www.deviantinvestor.com

GE Christenson

I am a retired accountant and business manager who has 30 years of experience studying markets, investing, and trading futures and stocks. I have made and lost money during my investing career, and those successes and losses have taught me about timing markets, risk management, government created inflation, and market crashes. I currently invest for the long term, and I swing trade (in a trade from one to four weeks) stocks and ETFs using both fundamental and technical analysis. I offer opinions and commentary, but not investment advice.

Years ago I did graduate work in physics (all but dissertation) so I strongly believe in analysis, objective facts, and rational decisions based on hard data. I currently live in Texas with my wife. Previously, I spent 20 years in Barrow, Alaska, the northernmost community in the United States, 330 miles north of the Arctic Circle.

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/