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Monday, January 6, 2014

B2Clive and the gold price


Here's a couple charts:


B2Clive has actually pretty much refused to wake up to the extent of some other gold miners. Til today, really, where it retakes the SMA(50). I wonder how far it can run if it prints a higher high this week?



And gold is looking perky, and possibly might retake its own SMA(50). That will really confuse the market if it happens, won't it? After all, isn't gold supposed to suck?

I'm starting to think the action from late-November on was panic selling to get gold & friends out over everyone's portfolios by end of year. This would mean gold has a way to go still before it even retakes the equilibrium price that it was so vigourously pushed away from.

And yeah, for what it's worth I don't think we'll be seeing sub-$1150 gold this year. Unless, of course, there is a massive wave of gold selling due to a China debt collapse, of course.

And you will see selling when that happens, I think.


4 comments:

  1. "I don't think we'll be seeing sub-$1150 gold this year. Unless, of course, there is a massive wave of gold selling due to a China debt collapse."

    I don't understand you. Wouldn't the Chinese be buying gold if all their debt turned out to be worthless. Where would the Chinese with money invest in?

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    Replies
    1. Whenever there's a liquidity crisis, gold collapses.

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    2. If debt devalues, where's the free cash flow to buy gold? Also, anyone on margin is selling to raise capital. I'd add to IWNATTOS, in a liquidity crisis, damn near everything gets sold, not just gold.

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