BullMarketRun.ca

Welcome to our site, or at least the initial version of it!  BMR has been online for more than two years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus very much on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Gold hit a new 4.5-month low this morning of $1,571 but has recovered most of those losses..as of 8:30 am Pacific, the yellow metal is off just $5 an ounce at $1,589…Silver is now essentially unchanged at $29.02…Copper is 4 cents lower at $3.68…Crude Oil is 33 cents lower at $96.75 while the U.S. Dollar Index is down slightly at 80.16…

UBS reported that Indian buying of Gold during Wednesday’s fall below $1,600 was nearly twice the average daily volume and the “strongest since April 17″…India’s government has abolished the excise duty on Gold jewelry…this was one of the reasons for the recent jewelers’ strike which drove Gold imports down 55% in India…getting rid of the tax should encourage the restocking of Gold and bring Indian gold buyers back to the market…physical buying will be the key factor in helping to stabilize the Gold price and keep bullion at $1,500 or better…

Silver futures are now trading in Shanghai, the 28th product to be launched on China’s futures markets…

Even The Best Get Humbled

There’s nothing like getting humbled by the market, which has happened to every trader and investor at some point, but what would it feel like to lose $2 billion?…”Just because we’re stupid doesn’t mean everyone else is,” commented J.P. Morgan CEO Jamie Dimon when asked if other banks could see the same type of losses…the $2 billion trading loss reported by J.P. Morgan yesterday was the result of bad derivatives bets by its Chief Investment Office which Dimon called a :synthetic hedge” using credit default swaps…this kind of insurance contract was poorly executed and poorly monitored, according to Dimon…he said the bank has an extensive review underway and has already found “many errors” and “bad judgment”…the timing of this news was certainly not helpful in the context of the current market environment…

An Optimistic Outlook

The Financial Post reports this morning that recent weakness in equity markets due to the flareup in Europe’s debt crisis and disappointing U.S. payroll numbers reminds investors of last year’s summer sell-off…the Post’s David Pett wrote that Murray Leith at Odlum Brown says history will not likely be repeated this time around…”Given that stocks experienced corrections as the global economy slowed in 2010 and 2011, it is human nature to expect that pattern to repeat itself again this year,” he said in a note to clients…”We don’t think it will…in fact, we believe there is a reasonably good chance that the global economy will accelerate heading into summer”…Leith said that markets were upended at this time last year, not only because of Europe’s troubles and weak U.S. economic data, but also because rising commodity prices, higher interest rates and the natural disasters in Japan were also at play…that is not the case this year, he said, and there are more tailwinds than headwinds driving markets now…”Interest rates are extremely low, inflationary pressures have abated, and Japan is rebuilding,” he wrote. With U.S. and Europe faring better than expected, Leith sees better days ahead…

Today’s Markets

Markets have rebounded after opening modestly lower this morning…as of 8:30 am Pacific, the Dow and TSX are now both in positive territory…the Venture Exchange dropped as low as 1343 and is now at 1349, down 6 points for the day…

Western Copper (WRN, TSX)

It’s not only Venture stocks that have suffered over the last couple of months…Western Copper (WRN, TSX) has taken quite a beating as John’s chart shows below…it fell from a yearly high of $1.97 February 29 (interestingly, the same day as the Venture’s yearly high) to a low of 93 cents Wednesday (same day as the Venture’s yearly low to date)  just slightly above its 2010 low…a positive sign is that very intense selling pressure in WRN is starting to abate…

Greenlight Resources (GR, TSX-V) Chart Update

Spanish Mountain Gold (SPA, TSX-V) Chart Update

Note: John, Jon and Terry do not hold positions in WRN, GR or SPA.

Gold is firmer this morning as it fights to re-take the $1,600 level…as of 8:20 am Pacific, the yellow metal is up $6 an ounce at $1,595 after climbing as high as $1,603…Silver was higher but is now off a nickel at $29.22…Copper is up a penny at $3.71…Crude Oil is 14 cents higher at $96.95 while the U.S. Dollar Index is relatively unchanged at 80.08…

Today’s Markets

Markets are trying to recover today and are mostly in the green, despite weaker-than-expected Chinese trade data, with the Venture Exchange up 16 points at 1362 as of 8:20 am Pacific…one or two days does not a trade make, but the TSX Gold Index reversed strongly yesterday after finding support at the 280 level…in two-and-a-half months this Index has fallen 29% (since last summer the drop has been a stunning 38%)…the Venture, meanwhile, has lost as much as 373 points or 22% since February 29…as John’s chart below shows, the Gold Index found support at the bottom of a 2.5-month downtrend channel yesterday…what it may now attempt to do is test the upper portion of that channel…the first real sign that the Gold stocks may have bottomed out is if this downtrend channel can be broken to the upside…we’ll keep an eye on it…

As of 8:20 am Pacific, the TSX Gold Index is up 2 points at 293…

Anglo Swiss Resources (ASW, TSX-V)

The potential for flake graphite in the Slocan Valley region of southeast British Columbia is becoming more apparent, and Anglo Swiss (ASW, TSX-V) is turning its guns to its Blu Starr Property immediately south of Eagle Graphite’s mill…ASW jumped 33% on the news yesterday that it’s commencing a prospecting program at Blue Starr…over the years, the company has spent well over $1 million exploring this property but they’ve never drilled it…while their original target was Gold, it appears Blue Starr is much more prospective for flake graphite…the 6,473-hectare property covers high-grade metamorphic rocks of the Valhalla Metamorphic Complex…in the northern part of Blu Starr, up to 15% graphite has been mapped in outcrop and appears to be associated with a 3-km long EM anomaly identified in an airborne geophysical survey completed by the company two years ago…less than 25% of the property was covered by this airborne survey…just over 20 kilometres to the north is Eagle Graphite’s deposit which has the potential to be world class…it seems this large stretch of ground in the West Kootenays has undergone very special geological processes that have given rise to conditions that support the formation of flake graphite deposits…much of the investing public is unaware of the story given the fact that Eagle Graphite is a private company…rumor on the street is that Eagle Graphite could go public…what’s particularly special about this situation is that Eagle is likely to be the only producer of flake graphite in western North America for at least the several years…

ASW closed at 6 cents yesterday (right at its rising 100-day SMA) and below is a chart from John that shows some encouraging technical signs…

Note:  Jon holds a position in ASW (John and Terry do not)…

Bank of England Stops QE

The Bank of England voted not to give Britain’s struggling economy another cash injection today as concerns over stubbornly high inflation outweigh the risk of a prolonged recession and renewed dangers from the euro zone debt crisis…but after buying 325 billion pounds of government debt with newly created money, 50 billion pounds of which has been purchased in the last three months, the Bank has judged that its policy stance is supportive enough…the central bank also left its key interest rate unchanged at a record low 0.5%…both decisions had been widely expected, though a significant minority of economists still think the central bank may eventually do more easing…the central bankers based their votes on updated growth and inflation forecasts that Bank of England Governor Mervyn King will announce next week…

Posting time for Morning Market Musings is being changed for Thursday and Friday morning only this week to 8:30 am Pacific from the usual 6:00 am Pacific due to travel.

Weakness continues in Gold after yesterday’s sell-off that sent it below important technical support in the low $1,600’s…the yellow metal hit a four-month low this morning of $1,577 and is currently down $19 an ounce at $1,586 (as of 6:00 am Pacific)….Silver is off 58 cents at $28.91…Copper is down a nickel to $3.65…Crude Oil is $1.16 lower at $95.85 while the U.S. Dollar Index has gained another one-quarter of a point to 80.14…

While Gold has certainly suffered some short-term technical damage, which potentially could lead to a test of the December low of $1,525 if the $1,600 area can’t hold on a closing basis, it would take a move below $1,500 to call into question the overall long-term bull market – and that seems highly unlikely for a host of both fundamental and technical reasons…so for now this has the “look and feel” of other final pushes to the downside witnessed in previous major corrections with no reason to push the panic button…

Outlook For Canada Bullish – Royal Bank Chief

Royal Bank of Canada chief Gordon Nixon says he is “incredibly positive” about the outlook for the Canadian economy despite the problems bubbling up around the globe…“The next number of years is going to be a difficult period for the world,” the CEO told a Bloomberg conference in Toronto…however, Canada “is incredibly well positioned” because of its fiscal flexibility, low tax rates, natural resources, strong financial sector and growing industrial sector…

Canadian Housing Starts Higher

Canada Mortgage and Housing Corp. data released this morning show overall construction starts in Canada were up 14% last month to a seasonally adjusted annual rate of 244,900, the highest since September, 2007, and an increase from the March pace of 214,800…a surge in condominium construction helped boost the numbers…

Today’s Markets

European shares have extended their losses this morning with euro zone banks hit by expectations Spanish lenders would face new cash calls and ongoing concerns about the political impasse in Greece…China’s Shanghai Composite fell 40 points or 1.65% overnight to 2409, while stock index futures in New York as of 6:00 am Pacific suggest a possible 1% drop at the open on Wall Street…

Some panic selling definitely gripped the Venture Exchange yesterday as it plunged through the late April low of 1363 and closed at 1338…next support is obviously at the 1300 level which held last October…below is an 8-month weekly chart from John which shows that RSI(2) is at levels indicative of a market low – RSI(2) is telling us that it makes much more sense to be a buyer at the moment as opposed to a seller…

The U.S. Dollar and the euro are being watched closely at the moment…Gold appears to be mirroring movement in the euro which continues to be under pressure and is likely to test a support band between 126 and 129 (it’s at 1.2934 as of 6:00 am Pacific) as John’s chart shows below…

The U.S. Dollar Index, meanwhile, is at a critical juncture…it’s fighting resistance at the 80 level, but a close above that would likely add some fuel to the fire (“false” breakout above 80?)…however, RSI(2) is at extreme levels which suggests the Index’s upside potential is limited at the moment…

Gold is off $10 an ounce to $1,628 as of 5:00 am Pacific…Silver is 35 cents lower at $29.74…Copper is off a nickel at $3.72…Crude Oil has declined 84 cents $97.10 while the U.S. Dollar Index is up slightly at 79.68…

Berkshire’s Charles Munger, Warren Buffett’s right-hand man, gets our vote for The Stupidest Comment Of The Year after telling CNBC’s Rebecca Quick, “Gold is a great thing to sew into your garments if you’re a Jewish family in Vienna in 1939, but I think civilized people don’t buy Gold, they invest in productive businesses”…

Perhaps China and India haven’t quite reached “civilized” status yet in Munger’s distorted view of reality…

Not to be outdone, “Tax Me More” Buffett chipped in yesterday with his own shot at Gold bugs…”They want everybody to be so scared they run to a cave with Gold…caves might be a better investment than Gold…at least they’re not producing new caves all the time”…

Buffett obviously hasn’t done his homework on Gold or he would understand that production of the yellow metal is actually barely ahead of where it was a decade ago – “new caves” are being found, though this is a much more difficult process than ever before, but “old caves” are being filled in…with new demand dynamics, the Gold price is up six-fold over the last decade which is a far better return than the share performance of Berkshire Hathaway…

“Absolutely I would take the other side of that trade,” stated Michael Pento, founder of Pento Portfolio Strategies in Holmdel, New Jersey…”The stock market has gone nowhere in nominal terms in 12 years…it makes sense as a default under the current conditions of negative real interest rates to own something that keeps you afloat, that preserves your purchasing power”…

Pento is the former senior economist at Euro Pacific Capital, the firm run by noted Gold enthusiast Peter Schiff…Pento has nailed the trajectory of Gold’s price for the past three years running…

Primarily because of the Federal Reserve‘s weak-dollar policies, Pento expects Gold to continue to hold its place as an inflation hedge, as well as a safe-haven asset to buffer against global debt contagion…for 2012, he thinks Gold should be able to hit $1,900 an ounce…

“I would ask Mr. Buffett if he could own a lone share of a representative of the S&P 500, or would he rather have the equivalent of an ounce of Gold?” Pento says…”Which investment has done better over the last dozen years? The answer is clear: Gold“…

Major Bank Bailout By Spain

The Financial Times reports that Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender…in an abrupt reversal of policy, the Spanish government, which had previously insisted that no additional state money would be needed to clean up the country’s banking sector, confirmed that an intervention was being prepared…

Today’s Markets

Asian markets were mixed overnight with Japan gaining 63 points or 0.7% to close at 9182, just below the 50% retracement of its rally from November to March…China’s 4-session winning streak was snapped as it dropped 3 points to 2449…

European shares are lower this morning with with concerns growing about Greece’s political future as the country’s parties struggle to form a new government…new elections next month could be necessary…the combined weight of Greece and Portugal in the euro area is less than 5%…the best way to strengthen a chain is to remove the weakest link, so a bankrupt Greece booted out of the euro zone might be the wisest strategy of all…politicians have been wasting their time repeatedly kicking this can down the road over the last year in particular…

U.S. stock index futures as of 5:00 am Pacific are pointing toward a slightly lower open on Wall Street…

The TSX and the Venture Exchange will be attempting to snap out of a 4-session losing skid that has sent the TSX down 472 points or 4%, and the Venture down a more modest 34 points or 2%…

CRB Index

Below is John’s 10-year monthly chart on the important CRB Index which shows that a support band is holding, while the Slow Stochastics Oscillator – in a steady decline for more than a year – is at its lowest level since the early 2009 bottom…this has to be considered bullish going into the second half of 2012…

Newstrike Capital (NES, TSX-V)

Newstrike Capital Inc. (NES, TSX), which completed a $25 million bought-deal financing in March, has recently been trading below its still-rising 300-day moving average (SMA) for the first time since late 2009…the company has been reporting stellar results from its Ana Paula Gold Project in Mexico which it acquired from Goldcorp a couple of years ago…Newstrike has a market cap of $250 million and has been closely mirroring the CDNX which is why this chart from John is so important…a strong case can be made that Newstrike found a bottom in late April around $2.10 with RSI now forming a bullish “W” at the 40% level…this is an important stock to watch for signs of a definitive turnaround in the CDNX…

Note: John, Jon and Terry do not hold positions in NES.

Gold traded in a narrow range overnight despite the election results in Greece and France…ultimately, Gold could benefit if Europe veers from austerity toward more stimulus in the coming weeks and months, which now seems likely, and particularly if the ECB were to cut interest rates and resume its LTRO program (long-term refinancing operation) to promote stability in the euro zone…yes, the end result of yesterday’s elections is probably more money-printing one way or the other…as of 6:00 am Pacific, the yellow metal is down $4 an ounce at $1,638…Silver is off 13 cents at $30.21…Copper is up 2 pennies at $3.77…Crude Oil is 69 cents lower at $97.80 while the U.S. Dollar Index has retreated one-third of a point to 79.73…

Greece, France Election Results

Election results in France and Greece yesterday reflected failing public support for the euro zone, costly bailouts and austerity measures implemented across the currency bloc…Greece faces political turmoil after yesterday’s inconclusive general election in which both mainstream pro-Europe parties saw a dramatic collapse in support and anti-austerity groups increased their share of the vote…with hardline parties from the left and right making big gains, it’s now highly likely that the formation of any Greek coalition government will involve a renegotiation of bailout terms for that country…

In France, socialist Francois Hollande swept to victory in the presidential election, ousting Nicolas Sarkozy who had played a key role in structuring bailout schemes for indebted euro zone members and pushed for strict fiscal policies aimed at managing huge debts (Sarkozy was also the champion of a Canada-European free trade agreement which now could be put on the backburner)…

Hollande’s victory also may signal an end to an awkward compromise among the leaders of Germany, France and other European states around debt-cutting, rather than growth promotion, as the solution to the euro-zone crisis…

“Europe is watching us,” Hollande declared in a victory speech…“In many European countries there is now relief…austerity is no longer the only option”…

French corporations and banks have been surprisingly calm about the prospect of a Socialist Party presidency, and in private they say they’re not expecting a major break from the French norm…

Election Results Ultimately Market-Positive?

Jim O’Neil, the chairman of Goldman Sachs Asset Management, says the change in European sentiment could be a market positive as investors and politicians face up to new risks…

“If the Greek results reintroduce additional risks and fears of financial contagion across weaker euro zone countries, then this might also presumably weaken the euro because of the perception that it may force the ECB to be more accommodative,” said O’Neil in a report in which he joked that the U.S. Federal Reserve may quicker to act than the ECB…“It would be ironic, if not improbable, that a major escalation of Euro area financial contagion influenced the Fed more than the ECB,” said O’Neil…

Today’s Markets

Asian markets were down sharply overnight (Japan’s Nikkei is now at a 3-month low) with the exception of China as the Shanghai Composite was essentially unchanged at 2452…European shares are weaker this morning but off their lows (London is closed for a public holiday)…stock index futures in New York as of 6:00 am Pacific are pointing toward a slightly lower open on Wall Street…

This week will be an important test of support around 1400 for the Venture Exchange…the Index held up impressively well over the final three trading days last week when the broader markets tanked…

Silver Chart Update

We haven’t updated the Silver chart for a while, so below is John’s latest take on what’s happening technically with this market…Silver has been in a downsloping consolidation channel for a year now and must make a decision soon on which direction it’s going…we favor the bullish scenario as we believe Silver could easily emerge as the investment of the decade…it has been out-performing Gold and that trend can be expected to continue as it’s the “poor man’s Gold” and the historical Gold-Silver ratio is 16 to 1…demand for Silver is reportedly soaring in the Gulf region which is interesting, and the opening of the Pan Asia Gold Exchange (PAGE) in China next month could turn out to be hugely significant of terms of bringing potential new buyers into the Silver market…the Silver chart looks solid and the last half of this year could turn out to be quite spectacular…

The China Securities Regulatory Commission on Friday announced the approval of the trading of Silver futures contracts on the Shanghai Futures Exchange (SHFE)…the SHFE said in a statement published on its website that the trading will begin later this week (Thursday, May 10)…the Silver futures will become the second noble metal futures on the domestic market after the Gold futures…the trading unit of Silver futures is set at 15 kg per hand, with the minimum trading margin at 14% of the value of the contract on the first day of trading and 7% thereafter…the SHFE is also considering carrying out night trading for noble metals…

U.S. Dollar Index

The U.S. Dollar Index showed some strength last week, climbing each day, but the greenback is still facing some major technical hurdles as John’s chart below shows…the Dollar Index does have strong support at 78, however, so look for either a breakdown below that support or a breakout through the down trendline…

The Volatility Index (VIX)

Below is John’s 5-year monthly chart of the important Volatility Index which shows the VIX is currently well within the zone that is considered generally positive for stocks…the next VIX “peak” may not come until much later this year…

Prodigy Gold (PDG, TSX-V)

Prodigy Gold (PDG, TSX-V) continues to make impressive progress in developing its Magino Gold Mine Project in Ontario…Prodigy has held up very well over the last couple of months under challenging overall market conditions, so the outlook for the balance of the year has to be considered very positive…below is an updated 6-month daily chart for PDG with the Chaikin Money Flow (CMF) indicator showing strong accumulation since the beginning of April…

Note: John, Jon and Terry do not hold positions in PDG…

TSX Venture Exchange and Gold

It was a bad week for North American markets but the Venture Exchange fared much better than the TSX, the Nasdaq and the S&P 500 which all tumbled between 2.44% and 3.68%.  The Venture lost just 8 points or less than 1% for the week, finishing at 1405 and just above its rising 10-day moving average (SMA).  There’s a very good chance that the 1363 low April 23/24 was the bottom of a 20% correction that began February 29 and spanned 38 sessions.

The Venture almost seemed to step back reluctantly Wednesday, Thursday and Friday – volume declined each day and the Index bounced back intra-day Friday from a low of 1394 – as the broader markets got hit much harder.  The TSX, in fact, shed 462 points or 4% over those three days – twice the percentage loss posted by the Venture.

Take a look below at the latest CDNX chart from John.  There are several encouraging signs including a very pronounced reversal in the CDNX relative to the price of Gold. This kind of development typically signals an imminent or near-term bullish move in Gold.

The TSX Gold Index hit a new 52-week low last week of 293, a whopping 36% correction from last summer’s high of 455.  Meanwhile, the TSX itself is now down 0.7% for the year which makes it the worst-performing index on the global major market leaderboard – worse even than France, which now has its first Socialist president in nearly two decades, and the U.K. which has stumbled into a double-dip recession.

Gold

The Gold chart continues to look strong with support holding in the low $1,600’s and an inverted head-and-shoulders pattern very much intact.  For the week, bullion was off $21 an ounce as it closed at $1,642.  Silver dipped briefly below $30 an ounce and closed down 93 cents for the week at $30.34.  Copper lost 11 cents to $3.86 while Crude Oil tumbled $6.44 a barrel to $98.49 on demand concerns and new hope for a possible negotiated settlement with Iran over its nuclear program (the Iranian regime cannot be trusted but naive politicians will continue to pursue a “peaceful” solution).  The U.S. Dollar Index rose nearly a point for the week to 79.51.

Below is John’s updated Gold chart which shows strong support and increasing weekly buying pressure.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), money supply growth, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.