Apr 26, 2014



1.    “Gold prices rallied further and reclaimed the key Rs 30,000 per 10 grams mark at the bullion market here today, driven by consistent demand from jewellery stockists and investors, ignoring weak global sentiment.  Silver also strengthened on the back of good offtake from industrial users.” – The Financial Express, Mumbai, Apr 25, 2014.

2.    How does a Western Gman start his day?  Well, he typically likes to get off to a good start, like an athlete having a good breakfast.  So, he begins with a quick rip off of a few freedoms, from his citizens.  No matter what happens next, he can call the day a success, once that’s done.

3.    Next, he tells CNBC that an American super boom is in play, based on 2{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} growth smoke pouring out of a QE crackpipe and a tanking employment participation rate.  He then adds some new taxes, buys a load of bullets and bombs, and promises to spend one cent on infrastructure at some point in the next century.

4.    Repetition builds wealth.  We, the team, builds wealth.  Freedom robbers and crackpipe smokers don’t build wealth. So, let’s repeat: “Gold prices rallied further and reclaimed the key Rs 30,000 per 10 grams mark at the bullion market here today, driven by consistent demand from jewellery stockists and investors, ignoring weak global sentiment.  Silver also strengthened on the back of good offtake from industrial users.” – The Financial Express, Mumbai, Apr 25, 2014.

5.    Pent-up gold jewellery demand in India is “beyond mindboggling”.  High and rising demand for smuggled gold doesn’t have the same effect on the POYG (price of your gold) that official demand has, as I’ve laid out in detail, but it does have an effect.

6.    Smuggling 20 tons a month into India, when demand is 100 – 120, while official imports are 0 – 40 tons, doesn’t move the POYG.  All the parabola demanders on the planet can line up at your doorstep and promise gold is about to go vertical in that situation, but it won’t.

7.    On the other hand, smuggled gold into India that rises towards numbers like 40 – 50 tons a month, and more, while official imports are 40 – 50 tons a month, does begin to put slight upwards pressure on prices, provided central bank buying continues at a rate of 20 -30 tons a month, and Chinese buying continues at about 80 – 100 tons a month.

8.    If Indian citizens and professional smugglers are bringing in tonnage in the range of 40 – 50 tons a month, with an eye on the 80 – 100 tons a month marker, gold should steadily move towards the $1432 area highs.

9.    Far too much attention is being paid, jointly, by the bears, by the one more trip downers, and by the parabola demanders, to the gold bullion price now.  They are all trying to predict some kind of super blast, up or down, when they should be focused on gold stocks, and in particular, junior gold stocks.

10.Gold is just not in a situation where demand swamps supply, or where supply swamps demand.  Demand will swamp supply, but we’re not there yet.

11.As you know, Newmont had a spectacular week.  Goldlion views NEM like Cameco; where NEM goes, is where the gold junior stocks go.  Likewise, it’s almost impossible to see the junior yellowcakes, as a group, soaring if Cameco looks like a wet noodle.

12.Every gold junior investor in the world should be watching NEM now. 

13.Meantime, please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr26j1.PNG  That’s the daily chart of GDXJ, using gold currency.

14.The chart looks identical to the GDXJ chart using fiat, but if you’re booking profits and there’s a black swan event that sends gold vertical, you’re in the game rather than out of it.

15.Technically, the chart looks excellent.  There’s a breakout from a bull wedge pattern in play.  Volume is superb.

16.Also, note the action around the Keltner lines (the green “river bank” lines and the dotted middle line).  The price bounced from the lower Keltner demand line, but failed at the dotted centre line.

17.I’ve talked about the importance price/weight moving above that dotted centre line, when an asset is in bull mode.

18.The way I like to view this chart is in grams.  Over the past week, price has jumped from 27 grams to 30 grams.  The bottom line is that a block of GDXJ that bought you 27 grams of gold a week ago now buys you 30 grams.

19.GDXJ has traded sideways for the past 3 days, opening the door to rectangle action, between 29 and 30 grams, with a 67{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} chance of blasting higher. 

20.From the Dec 2013 “It’s all over” lows, GDXJ has basically “destroyed” gold bullion, on the performance grid.  It surged from 24 to 35 grams per “share”.  That’s almost a 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} price spike.  It’s jumped 10{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} just in the past 5 days.

21.GDXJ is up about 25{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} from the December lows, even now, against bullion.  Let’s take another look at it.  Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr26j2.png  Look at the myriad of buy signals on the indicators on this daily chart!  I’m particularly impressed with the 15,9 TRIX series, which gives very few false signals.

22.Obviously, some of your individual juniors will sputter, even if GDXJ marches higher.  Some juniors will be 10 baggers, and question is, will one be YOURS?

23.Please click here now: http://www.gracelandjuniors.com/images/stories/14apr/2014apr26lev1.png That’s Levon, one of Goldlion’s Eye Opener portfolio stocks.  It’s taking on US fiat here, but the chart looks identical against gold.

24.Levon surged about 100{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in 2 months against both gold and fiat, and yes, it gave a lot of that back recently, but that’s life in the junior gold stock lane! 

25.Report Card Day:  If NEM surges the 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} - 50{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} that Goldlion thinks it can from here, what will stocks like Levon look like?  Hello?  Knock, knock, let’s hope there’s no “one more trip down” demoralized gurus home!  I’m amped for more bullish action in junior gold stocks this week.  US GDP numbers get released on Wednesday at 830am, so be ready for another bankster game around that report.  That game won’t change the fact that more money managers around the world are mentioning the I word (inflation).  It won’t change the fact that Narendra Modi is still alive, with 19 days to go to the vote count.  It won’t change 1000 tons of pent-up Indian demand.  It won’t change the fact that Chinese gold demand is not about the growth of the middle class.  It’s about the rise in income of the entire working population, and the exponential affect that has the amount of gold each citizen buys.  The trend of rising demand for gold from your mines is intact, solid, and growing, regardless of 8{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} interest rates in India, and regardless of a Chinese GDP slowdown.  Only Chindian bankster games to choke out imports have materially affected the demand trend of champions, and only temporarily, especially in India.  Let’s hit the golden junior gold stocks ground, running, on Monday morning.  See you there!

             Kirk Jr, out!

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