The original intent was as noted here at the site last week, to allow some room to build a bearish case for 3D Systems (DDD). But even with 30 pages that did not happen. Maybe I’ll find time to do it as a public post.
What did happen was a well rounded look at the precious metals along with the usual markets. Also this somehow got into the ‘Wrap Up’ segment…
Gold is Monetary Value
We preface the post with a statement that has not changed since I began public writing nearly 10 years ago: Gold is not about price; gold is about value. This point was hammered home to me 11 years ago by a person who had much influence upon my viewpoint toward the financial system and its various diseased components at a time when I was ready to listen and understand.
So whether we are talking about 2013′s epic price crash or a new bull trend in 2014, the simple fact is that physical gold itself is a store of monetary value. That applied last year as the value was marked down by greed and confidence and it will apply this year as it is marked up in the face of a likely unwinding of those things. Humans, what funny and hyper kinetic animals.
Precious Metals Speculation
Ah, but this post is about the fun part, the speculative part where we humans can make gains from gaming the simple store of value and its wild little brother, silver. As asset market speculators we care about prices, right? How about the share prices of the completely blown to bits miners that dig the stuff out of the ground?
It’s in alignment with a positive view for the whole damn commodity complex and a new wrinkle in the analysis to be fleshed out and kept tabs upon going forward.
A 35 page monster (lots of pertinent charts and graphics, so it’s not as difficult a read as it may sound) was just sent out to NFTRH Premium subscribers. It’s a good one too. Filled with probabilities in alignment with our bigger picture plans for the financial markets, and yet some short-term moderation of views as applicable.
Friday was a scary day for the US stock market. Said market is not broken, but the indicators beneath it are rapidly coming apart and the bull market’s technical parameters are coming into play. Then there is gold and other ‘risk off’ things. So much to discuss and 35 pages really was not enough. Good thing we have nothing but time to lay it all out going forward in 2014.
NFTRH 275, a solid piece of work… out now.
Along with the long bond’s bottoming potential, the sneaky gold silver ratio has been in a classic set of higher highs and higher lows (i.e. a bull rally). The last year has been chock full of screwed up market signals (even to the degree that a flurry of well known market luminaries famously got out of the game) I assume compliments of the Fed and friends working the markets 24/7. But normally (ha, what a word, normally) a rising gold silver ratio indicates liquidity stress developing and possibly an oncoming economic issue.
Also normally (again, what is normal now?) a rising GSR does gold miners no good, other than to indicate a time of positive underlying macro fundamentals that would ultimately help the sector.
Just doin’ the work required to firm up the plan. 31 pages of it. I look forward to a phase when we can lock, load and simply manage new trends.