JWU NOV 8

Nov 8, 2013

 

1.   There they go!  America is on fire, and a horde of terrified citizens are running down the street. Are they racing to buy stock in your junior producer and explorer companies?  Are they racing to buy more gold than your companies can produce?

2.   Sadly, no.  America’s big picture relevance to the gold price got nuked, in April 2013.  It’s the end of an era, and the beginning of a new one.  A productive one.

3.   While Ben flapped his trap today, telling JP Morgan wealth transfer and student loan asset stories, your gold mining stocks moved ever-closer to Indian jewellery stocks.  Queen Gold now pronounces you… man mine and gold jewellery wife, and yes…  You may kiss your bride.

4.   ‘NEW DELHI: Calling Goldman Sachs' recent report on India as "most inappropriate and objectionable", commerce and industry minister Anand Sharma on Friday said the country will not entertain any prescriptions from unconnected entities.  "India's growth story has always been strong and intact. What one needs to look at are the micro fundamentals of our economy (and) where the strength lies, the high rate of savings and investments"’ –India Times, Nov 8, 2013.

5.   While Ben Big Nose called student loans a “government asset”, India calls savings and investment an asset of the citizens.

6.   Speaking of Goldman and India, let’s take a moment to salute Goldman’s top commodity analyst, Jeff Currie, for almost mentioning the fact that his mobster bosses helped crush 100 tons of gold demand in India, during his bearish analysis of the gold market today.

7.   Jeff has a very interesting last name, and maybe enraged Indian citizens will accidentally grind up his face, and use it for the spice flavour that India is well known for.  India has a motto: Nothing beats a nice spicy meal, before heading to the gold jewellery store, to buy the gold your mines explore for and produce.

8.   On that note, and with thanks to GU super sub Dr. Passion, please click here now. You are looking at the XME-nyse daily chart that he trades actively, using my stokeillator.  (It’s a key metals & mining company focused ETF that holds some of the largest base metals miners in the world.)

9.   Note how XME bottomed in June along with gold and gold stocks, but the XME rally didn’t die, like the gold stocks rally did.  It’s what I would call a non-manipulated metals stock rally.

10.      Next, please click here now.  That’s the GDXJ daily chart.

11.      If GDXJ had done what XME had done, since June, you would be singing like a bird right now.

12.      Patience.  It’s very possible that XME is a leading indicator for what is coming to gold stocks, and GDXJ put in a very important key reversal day today.

13.      A bullish key reversal is when the price closes up on the day, after a minor trend decline, and after suffering a heavy decline earlier in the day, and volume surges.

14.      My stokeillator lead line has arrived at the 20 area.  That’s also good news, for you.

15.      The bottom gold stocks line:  Chinese and India growth is picking up, and they want your metal.

16.      The pinhead patrol predicts a property market crash in Shanghai.  I wonder if the pinhead patrol knows that to buy an investment property in Shanghai (2ND home), the investor must put up 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the price of the property.   

17.      That’s the downpayment required by Shanghai Gman law to purchase a “speculative” property: 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}.

18.      Chinese property growth is spurred in a big way by urbanization, not Western world OTC derivatives on mortgages featuring 100:1 leverage.  Sorry to disappoint the pinhead patrol, who demand a Chinese property market crash to satisfy their gold market crash fantasies. 

19.      If YOU are a fundamentalist, and I am, and you want to use fundamentals to predict the next $100, $200, or $300 move in the gold price, please report to the nearest lunatic asylum for processing.  Thanks.  99{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} of the gold market intermediate price action in is determined by bankster algo traders, and they don’t care one iota what comes out of a fundamentalist’s mouth.  They make what comes out his mouth.

20.      Technical analysis, mainly HSR levels, is how to operate in the gold market, if movements of $300 an ounce and less are of any importance to you. 

21.      If you are a fundamentalist, then you need to be looking at much bigger price movements, and the hilarious fact of the fundamentalist matter is that nothing American matters anymore to a serious gold market fundamentalist.  All that matters is how much tonnage Chindia buys, tonnage that is found and produced by your mines. 

22.      Me gold fundamentalist but me never look at India and China news”. –Not You, Nov 8, 2013. 

23.      What happens if Iran really does sign a deal on nuclear weapons, one that creates a huge flow of capital out of oil, and the oil price tanks?

24.      Answer:  The Indian current account deficit tanks, and Mobster Chidambaram become very amenable to relaxing the gold import restrictions.

25.      Gridtime!  If he chops the restrictions, well, perhaps you should please click here now.  That’s Indian jewellery manufacturing heavyweight Tara, and there’s a possible “wow factor” volume bar in play, and a major breakout from the horrible downtrend.  If the breakout is real, it suggests that something big is coming for Indian jewellery stocks, which means they’ll need more gold.  What gold will they need?  Answer:  The gold your companies find and mine.  Tara isn’t interested in some Western gold guru’s latest bunker boy story, but they’re very interested in the gold that your gold stocks have.  The big question, of course, is: Are YOU as interested in the gold assets of your stocks as they are?  You have a key breakout and a significant rally, by big league base metal stocks.  You have a possible major drop in the Indian CAD coming.  You have a key reversal on both GDX and GDXJ.  You have a significant pickup in Chinese industrial output.  Fresh vegetable prices jumped 30{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} in the last month in China, while Joe Blow Gold Guru tells another comex-to-blow story.  The Bombo 30, the Indian Dow, is on the verge of a monster upside breakout.  You have Shanghai “speculators” putting up 70{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} downpayments on property that has an average price of $3000 a square metre.  I wonder if they want any gold, and I wonder if they can afford any?  They do want gold.  Yours.  India’s official inflation rate over the past year has risen, from 4.9{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9} to 5.8{7d2759035a2769ee7a6afa7c646e6642b67314b0cd0e17ac0c6ae4f965ff87d9}.  Got Gold?.....Thanks to Martin Armstrong for pointing out this phenomenal video.  To view it, please click here now.   Can imagine 10 million Indians operating gold jewellery manufacturing robotics like this? 

26.      I can. 

 

Thanks!

           Cheers

           St

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