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Gold Set Up For Big Move This Year – What About Cryptos?

Gold and silver had a sharp run-up in the last two weeks of 2017.  However, the abrupt move in gold has been accompanied by a rapid rise in the gold futures open interest on the Comex. Furthermore, based on the last COT report the banks have dramatically increased their net short position and the hedge funds have gotten, once again, extremely net long.  I don’t like the looks of the COT report right now plus I anticipate a possible brief “relief” rally in the dollar index. But what about cryptocurrencies?  Over the past few weeks the largest and most actively […]

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A Collapsing Dollar Will Trigger The Next Big Move In Gold And Silver

When you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed. – from “Atlas Shrugged” Sorry MAGA-enthusiastics, it’s all a lie.  The tax legislation just passed will lead to higher Government spending deficits, a near-parabolic acceleration in Government debt issuance and a possible collapse of the dollar.  The U.S. is in systemic collapse.  Perhaps the biggest manifestation of this is the grand money-grab by the elitists […]

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Is Gold Ready To Move Higher?

The simple answer to that question is: who knows, eventually it will. I like to look at the Commitment of Traders report for signals. I think the COT offers better information than looking at charts, although I like to use my COT analysis in conjunction with charts. My fund partner keeps a database of COT gold and silver data going back to May 2005. Over this time, there’s been a strong correlation between the direction of gold, the net long position of the hedge funds, the net short position of the banks and the total open interest in gold (silver) […]

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Using Gold To See Where The Dollar Will Move Next

I’ve written a lot about how the US dollar is the fulcrum of the global financial system. Commodities are priced in dollars. Global trade is done in dollars. And the majority of international funding is in USD. The dollar is important. Dollar trends impact markets and assets around the world in various ways. Hence why the dollar is the fulcrum. But if the dollar is the fulcrum then gold is the foundation on which that fulcrum sits. I should make clear, I’m no gold bug and have no special affinity for the yellow metal. But when it comes to analyzing […]

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The Russian Love Affair With Donald Trump Sours As The U.S. And Russia Move Toward War

In recent months Donald Trump has been severely criticized by both Democrats and Republicans for not being sufficiently “anti-Russia”, but the truth is that the Trump administration has not been working hard enough to repair a relationship that is now souring very rapidly.  When Donald Trump won the election in November, the Russians celebrated tremendously, because they greatly preferred Trump over Hillary Clinton.  But just because Trump was victorious does not mean that our relationship with Russia will automatically improve.  Trump and Russian President Vladimir Putin both have huge egos, and it is quite easy to imagine a scenario in […]

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Understanding Why Currencies Move: Vicious and Benign Circles

Let’s talk about currencies. The different types of currencies and the various roles they play in the global financial system. Because this topic is complex and I don’t want to get lost in the weeds, I’ll be making broad sweeping generalizations while focusing on the key points that matter. My plan is to do this while trying not to bore you to death. Hopefully I’ll be able to tie all this together and show you why understanding these things will have a significant impact on your P&L in the year to come. Here we go… Money (cash + credit) is […]

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Big Move in the Silver Market Ahead

Precious metals markets enter the fourth quarter near a potential inflection point on the charts (see below). Gold and silver traded mostly sideways in the third quarter, with gold losing less than 1% for the quarter and silver managing a 2.5% quarterly gain. The money metals finished the month of September on a bit of a down note last week. However, no major technical levels got breached. The technical setup on the silver chart shows a three-month consolidation narrowing toward an end point. Bulls are looking for a weekly close decisively above the $ 20/oz level to confirm an upside […]

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Hit ‘Em Where It Hurts: A Move From Russia’s Playbook

There’s an Internet myth about the U.S. space program spending millions to perfect a pen that works in space, while the Russians simply used a pencil. It makes a nice story, but it’s not true (read to the bottom for more on that). However, there are instances where we can learn from the Russians. They go at problems in a very direct way, while we dance around them, sometimes never reaching a solution. Take dealing with debtors, for instance. As with America, Russia has a problem with scofflaws who don’t pay their bills, like credit cards and bank loans. We […]

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Global Financial Turmoil, Gold Price Doesn’t Move

BullionStar It’s remarkable the Greek tragedy has had no influence on the gold price in recent weeks. We’ve heard repeatedly Europe and Greece could not reach a deal for an extended bailout, are financial markets suffering from Euroscrisis fatigue? Team Dijsselbloem-Juncker states they stretched all they could and offered the Greek government a reasonable deal that would require more reforms the Hellenic Republic, but team Varoufakis-Tsiparas will not agree with the proposed reforms. On Thursday June 25 another final meeting ended with no success, while Greece had a payment of €1.6 billion to the IMF coming up on June 30, […]

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Another Reason To Move Away From California: ‘Conditions Are Like A Third-World Country’

As if anyone actually needed another reason to move out of the crazy state of California, now it is being reported that conditions in some areas of the state “are like a third-world country” due to the multi-year megadrought that has hit the state.  In one California county alone, more than 1,000 wells have gone dry as the groundwater has disappeared.  The state is turning back into a desert, and an increasing number of homes no longer have any water coming out of their taps or showerheads.  So if you weren’t scared away by the wildfires, mudslides, high taxes, crime, gang […]

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