Gold and Silver: Sentiment

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This article is reprinted, with permission, from John Townsend at The TSI Trader.

Many articles have been written on sentiment and its role in establishing where a market lies in its up-down-up-down cycle. This article addresses sentiment from many perspectives and concludes that the gold market is at an historic low in sentiment. The implication is that a rebound in price seems both imminent and inevitable. Read this impressive and highly intelligent article!

GE Christenson
The Deviant Investor

Sunday, May 5, 2013

Gold and Silver: Sentiment Reversal is Inevitable

The usefulness of sentiment’s stealth crystal ball is about to be revealed to the litany of unsuspecting precious metal bears and skeptics who have convinced themselves that gold’s bull market is either over or, at the minimum, in need of lengthy ongoing retesting, restructuring and consolidation.

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The Incredible Weight of Quantitative Easing

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scale

Skip the supposed theory and purpose of Quantitative Easing, and ask yourself what is its equivalent weight? Suppose we use the $85,000,000,000 per month that is officially acknowledged and round it to $1,000,000,000,000 per year and relate that $1 Trillion per year to items more easily understood.

  • What is $1 Trillion expressed in tons of $1 bills?
  • What is $1 Trillion expressed in kilos of heroin at “street value”?
  • What is $1 Trillion expressed in tankers of gasoline?
  • What is $1 Trillion expressed in cases of 18 year old single malt Scotch?
  • What is $1 Trillion expressed in days for the US government to spend it?
  • What is $1 Trillion expressed in truckloads of one ounce Silver Eagles?
  • What is $1 Trillion expressed in truckloads of one ounce Gold Eagles?

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What is YOUR Inflation Rate?

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We all know that our cost of living is increasing, but how much?

  • The official government statistics assure us that inflation is running around 2% per year. It reminds me of the line attributed to Groucho Marx, “Who are you going to believe, me or your own eyes?”
  • But, your cost of living increase – your personal inflation rate – may be much larger or smaller than that of the person next door. Your spending choices matter a great deal in determining your personal inflation rate.
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