Gold markets investment demand update – Why’s the market so slow and what could be the next catalyst to bring investors in?
Jeff Christian, Managing Partner at the CPM Group joins me to share his insights on investment and physical demand for the gold market. We discuss what’s driving investor demand and why, even with high inflation data, investors are not attracted to gold at the moment.
Click here to visit the CPM Group website to learn more about Jeff’s group.
Franco-Nevada saturated high yesterday
on the highest volume in over 3 months.
Royalty companies can be bellwethers.
K92 was capped again at fork resistance…
https://stockcharts.com/h-sc/ui?s=KNT.TO&p=D&yr=1&mn=1&dy=0&id=p00383333370&a=988774876
It took awhile but IPT finally reached the supports at .56 that I highlighted recently…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=W&yr=7&mn=0&dy=0&id=p40585053546&a=570417673
Unfortunate you didnt highlight .56 when ipt was $1.20. 😉
Ipt could still fall further as gold drops to 1750 etc, maybe it goes all the way to .11 again.
I think that might be nice.
There’s no way I would have cared about .56 when it was 1.20. I traded in and out of it several times as it bounced from 1.25 to the .90s and .80s back to the 1.teens and 1.22.
Interesting, so why care now?
Just out of curiosity.
Because it became relevant to short term trading. It is in play on the short term charts. It was completely meaningless to me for 7 or 8 months following last summer’s top.
And since IPT topped in July, there have been 6 moves of over 30% off of a short term low and 2 more that averaged 50% (46% and 54%).
It looks like the end is near for the decline that began over 6 weeks ago and if .56 doesn’t hold, I will be watching .53
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=0&mn=5&dy=0&id=p57810078466&a=993195155
Oversold for the first time in a year…
https://stockcharts.com/h-sc/ui?s=IPT.V&p=D&yr=1&mn=2&dy=0&id=p75196102543&a=993199613
It could come down further than that imo, should Bobs Oct crash happen we could be looking at some very good buys.
That is if cryptos dont sop up all the investment cash.
I agree that it could and the odds just increased with yesterday’s action in the whole sector. However, these illiquid but high quality juniors can catch a strong bid and diverge bullishly from the rest of the “safer” parts of the sector when the final low is very near. But of course we can’t count on that so I won’t guarantee either outcome.
I’m not worried about cryptos. Only dumb money is still playing the long side after BC topped earlier this year. It is wat too soon for smart money to start envisioning a major low.
https://stockcharts.com/h-sc/ui?s=%24BTCUSD&p=W&yr=3&mn=11&dy=0&id=p96612189008&a=919217452
Note the weekly close below the 50 week MA on the above BC chart as well as the huge head and shoulders top. Next week could could be ugly for BC as well as the stock market and everything else. Luckily, it will be ending action in the gold space but just the beginning for everything else.
This GDX chart shows the risks to the miners:
https://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=1&dy=15&id=p71128680662&a=993496285
If 33.50 goes, watch 33. And if it goes, about 27 would theoretically be in play.
This XAU chart shows some different possible supports:
https://stockcharts.com/h-sc/ui?s=%24XAU&p=D&yr=1&mn=3&dy=0&id=p14353481353&a=986055675
UUUU plunged 14% this week after I warned about it last week. It has now confirmed a big bearish double top which implies that it has much further to fall.
https://stockcharts.com/h-sc/ui?s=UUUU&p=W&yr=3&mn=11&dy=0&id=p43737683007&a=987769428
When Warren Buffett gets a whiff of all that cash, buys one of these miners, then it will turn around.
He did that already and sold after about six months. What makes you think he’s gonna jump in again? I don’t see the logic.
Barrick is about 23% cheaper now than when Buffett bought it last year. More importantly, Barrick priced in gold is now around 30% cheaper than when he bought it and, believe it or not, Buffett bought the top in Barrick vs gold…
https://stockcharts.com/h-sc/ui?s=GOLD%3A%24GOLD&p=W&yr=3&mn=1&dy=0&id=p83711310598&a=993135589
Maybe Jimmy Rogers will come in with a big shovel and scoop up all those free dollars sitting on the floor in the corner.
It’s gonna have to be a Newmont this time around, Barrick just isn’t big enough to move his needle anymore. Until then the gold miner market will be sideways to up and down like a toilet seat.
hi, Matthew. ktn for some reason , insider sell. may be for share price doesn’t matter.
Hi Alex, yes, Eric Sprott and others sold at least 8 million in May and June at 30 cents. I have more than doubled my position since then.
I have no way to know why he or any others might be selling but keep in mind that there are countless reasons one might sell but only one reason to buy. So I am usually more interested in who’s buying a stock than who’s selling it unless the selling causes unusually bearish price action.
Gold update!
Told many of you long ago this was headed down and here we are. Impact looks like it will hit my guaranteed price at .46-.48. The question will be will it hit my stink bid at .29-.30?
The naked short selling and mms are heavily at work and I just don’t see a turn around story this month. The only saving Grace is gold is holding while miners clearly getting shorted. Never say never but the September low or end of august low I suggested might be the final low of the longer term trend. This is as nasty as it get for the long term holders forget the traders who go in and out.
Let this be a wise wake up call for many, if gold ever goes back up of which I believe it will, profits need to be taken big time and he who doesn’t deserves what they get. This is wash rinse repeat with miners not gold. Miners!
Glenster, you’ve been honest in keeping to your .46 IPT call, so we’ll see if it gets there. Thanks for keeping us posted.
Matthew, thank you for response, on the other hand gsv inside buy and price is going down. every one crashes now.
Took my gains in AOTVF awhile back—it looks like it’s ready to break down and move back toward $.75 where I’ll consider purchasing it again. That dropped my percentage of investment in the PM sector back to the upper 30% again and will wait to start serious buying when this sector is done puking.
Wondering if we’re in a cyclical bear market, and we won’t see mid 2000’s until 2024 or later. Can’t see it getting off the mat when we’re hoping and praying that Jim Rogers and Buffet come in and buy large-cap miners to save us. BTW, I’m heavily invested in PM’s and thought this would be a long correction, but not a full year or more.
Easy to call a puke on the day they puke
Even Sprott, a while back, didn’t call for a puke out, especially with gold still holding 1800, though obviously not for long
It’s been almost 2 and a half months and Simon Ridgeway still hasn’t taken the trading halt off Rackla Metals. He operates with a tight fist and when it does come off the share price will move fast and then he will put another halt in place. Strange one to watch, he could keep it halted for another three months. If you get in you better get out in a timely manner, before there is another halt. I’ve watched this stock for eleven years, Ridgeway is an eccentric, I think he is saying, I’m in control.