Nobody believes that Gold can make a true reversal here. Sentiments are at total extreme. We have the capitulation in gold miners and, maybe, this is the sign of the end of this gold bear market.
Rick Rules: Capitulation In Gold And Resource Markets.
Rick Rules gives us the very good description of the Capitulation in the Gold and Resource markets. By my personal observations we just had it in place. Rick outlines the big picture for Resources Sector perfectly. This is why I am personally in this business. Real assets will be needed, particularly if and when we will have the growing world-wide economy. We can discuss all these details all time long and it will never matter before Mr Market will turn - maybe it is happening now.Please pay attention one more time what Alan Greenspan has been talking about FED and Gold! These are truly remarkable revelations at this particular turning point.We are moving forward with our companies: TNR Gold and International Lithium and advancing our projects. International Lithium enjoys two active J/V programs with Ganfeng Lithium, which is expanding their vertically integrated Lithium business in China now. In TNR Gold we have just concluded the major deal with McEwen Mining. Now TNR Gold holds NSR Royalty in "One of the World's largest undeveloped Copper deposits" - according to McEwen Mining, which is now for sale with clear title. TNR Gold has received shares in McEwen Mining and will get 1% of Los Azules copper project sale if it is done within next 36 months. This is the very nice addition to all our other assets: International Lithium 25.5% stake and 100% in Shotgun Gold deposit. Watch the video."
Gold and Commodities: What Is next - Major Reversal Or Another Bloodbath?
We had a small party this Friday with Gold short covering in a full action. Will this Reversal hold to its promise now? All hope was lost for the Gold bugs and all miners were obliterated in capitulation last week. This is when the bottoms are formed. No buyers and everybody who can has already sold. Last few weeks we had no bids in any junior miners and if any volume came in it was sold at any price. It is The Capitulation. I have seen it before and not a lot of people out of our industry can believe it, but we have hit even the lower low than in the middle of financial Panic in 2008 in our sector!
Nobody knows the future and I am not a trader any more. I have to stick with my companies moving forward, building up the assets even when nobody cares any more. But when the turn-around comes the move from insanity Low to another side is the most dramatic of all as well. You just have to stay in one piece before it. Have we reached this level?
The chart above could be the answer. Everybody is Bullish on US Dollar and Markets. Everybody is Bearish on Gold and Miners. Sentiments are at the total extremes. Fundamentals are supporting much higher Gold, Silver and Copper prices. The most important: smart money - Industry Insiders are buying the best assets now.
Please notice the fist Candle when USD started this rally in May 2014, the move was dramatic and uninterrupted. Now we have the Reversal Candle just formed. What will bring the downward pressure on US Dollar now? I do not know, but Nothing grows up into the Sky. Strong US Dollar means that Deflation can become the reality. Who will risk it now? We will see very soon and the next week will be very important. The real short squeeze has not even started yet.
Alan Greenspan talking about Gold as Premier Currency, Charles Nenner calling the cycle bottom and China buying record amount of Gold could be the signs of the tide coming up now to the gold market.
Alan Greenspan talking about Gold as Premier Currency, Charles Nenner calling the cycle bottom and China buying record amount of Gold could be the signs of the tide coming up now to the gold market.
You can find my previous posts links to showcase my Big Picture view on this blog and I will remind you about our assets in International Lithium and TNR Gold, as usual. Read more."
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