Jan 8, 2013
1. Hi ho hi ho, it’s on with the move from deflation to inflation, gold’s response to the jobs report, continues to go?
2. Under the QE/money supply growth mantra, a weak jobs report was gold-positive, because it meant that Crackhead Ben, I mean Chairman Ben, would print money and drive down the value of the dollar.
3. A strong jobs report was view as gold-negative because it would mean Ben would be tempted to taper, and money would flow into the stock market.
4. In an inflationary paradigm, strong jobs reports are viewed as inflationary, and gold positive.
5. The past few jobs reports that have been strong have been gold-neutral at worst, and arguably somewhat gold positive.
6. In an inflationary paradigm, gold stocks tend to outperform bullion. In a deflationary paradigm, stocks can outperform, but not necessarily so…
7. As the West moves from a crisis-focused deflationary paradigm, to an inflationary-focused paradigm, the big question is not whether the $1180 price is the low. That’s a question for crackheads to smoke in their communal crackpipe.
8. The million dollar question is what effect the QE-enhanced money supply could have on the inflation rate, if M1 velocity and M2 velocity begin to surge.
9. Gold is going vastly higher, even if everyone in the West died tomorrow, unless the banksters start nuking Chindia’s citizens. I’m sure they’ve thought about doing that, but I don’t think it happens.
10. If the QE-enhanced money supply is a shocking factor in speeding up inflation as M1V and M2V grow, Western gold community investors who sold all your junior stocks at huge losses, and bought bullion at $1500 - $1800 to “get out of the system”, will want to buy your stocks back, desperately, with their “growth with safety” bullion, as the inflationary paradigm becomes pumped by institutions, and they’ll pay any price to get them.
11. Please click here now. That’s the weekly chart of Denison Mines. Watch the potential breakout zone of the bullish monster wedge pattern carefully.
12. If there is a breakout, the next step would be to rise above the highs near $1.45 (which you would sell into, via pgen, of course).
13. A breakout above $1.45 out this huge wedge pattern could signal an end to the yellowcakes gulag.
14. I had hoped for a takeover announcement on Carpathian after yesterday’s positive action. Instead they announce a mine shutdown. Between the Toronto stock exchange and the directors, congratulations on a shareholder hatchet job, well done.
15. The insiders obviously knew about the mine shutdown news, and bailed yesterday, while telling great stories.
16. Luckily, I issued a kachingo alert, so you sold alongside the directors, tsx scum, and security commission scum.
17. Please click here now. Double-click to enlarge. That’s the gold versus junior gold stocks daily chart, via SGOL against GDXJ.
18. I’d love to tell you, and tell me, that GDXJ is flashing a buy signal. Unfortunately, it’s gold that is a buy against GDXJ.
19. Note the oscillator action, and the arrival at substantial HSR at $3.70, on a drop from $4.20.
20. The monthly chart oscillators are at record low levels, but the bankster-chimps seem to be willing to milk the short side until the cow is dead.
21. If gold stocks do begin to rise strongly, and you’ve sold some GDXJ for gold, you are ok, but if you’ve blown it all out for dollars, you can be left in the dust.
22. Gold as a currency has more benefit than most investors realize….
Gridtime! Please click here now. That’s GDXJ using silver currency. When monthly charts are as dramatically oversold as they are now, oscillators can flat line, but the risk to most junior gold community investors is being out of the market while it turns. That’s the reason to focus on moving from gold stocks to gold or silver here, rather than to cash, even on a short term trading basis. If the stocks decline against the dollar, they’ll likely decline against metal currency, and you can buy more shares then. If they rise dramatically, and you are in metal, you are ok. If they rise dramatically, and you are in dollars… not good.