Gold & Precious Metals

Fed chair Janet Yellen spooked investors Wednesday when she warned against sky-high equity values. And in a strange turn of events, she’s finding an unlikely ally in her assessment in the form of her biggest critic, Peter Schiff.

On CNBC’s “Futures Now,” the outspoken Schiff said that the stock market is “more than just a little overvalued, it’s extremely overvalued.” But rather than defending Yellen’s call, Schiff instead blamed the Fed’s policies for the frothy valuations that Yellen was warning about.

According to Schiff’s logic, the sky-high valuations for equities are a direct result of the Fed’s easy money policies over the past couple years. Schiff said that “artificially low rates” have forced investors to buy stocks and in the process have made them more expensive.

“Janet Yellen was half right when she said the stock market was overvalued,” Schiff, Euro Pacific Capital CEO on said on Thursday.

According to Schiff, the Fed is now trapped and unable to raise rates, as he believes doing so would prick the very bubble in stocks that it created.

“If the Fed was really going to raise interest rates [the market] would be a lot lower,” he said.

As a result, Schiff is convinced that the Federal Reserve will not only not raise rates anytime soon, but will likely enact another round of quantitative easing. By his logic, the Fed will do “anything” to keep stocks high.

“That’s also why I don’t think the Fed is going to raise interest rates, because I don’t think Janet Yellen wants the stock market to go down. This whole phony recovery is based on asset bubbles and the Fed is not going to intentionally prick those bubbles.”

So, how overvalued does Schiff think the stock market is? “It’s difficult to say,” he said. “I don’t know how far the market will drop because I don’t think the Fed will allow it to.”

 

Here are today’s videos and charts (double click to enlarge):


 Gold & Silver Key Chart Formations Video Analysis

 GDX Tree Pruning Video Analysis

 GDXJ Show Me Some Volume Video Analysis

 SIL (Silver Stocks ETF) Ascending Triangle Video Analysis

 Key Junior Stocks Thumbs Up Video Analysis   

   Here are some more interesting stocks in the precious metals sector. Volume analysis is the most important part of all technical analysis, and I focus on it here.

More Interesting Precious Metal Stocks Video Analysis

Thanks, 

Morris

Bullish call on gold from HSBC….

Posted by HSBC’s Chief Economist

on Thursday, 21 May 2015 22:01

h2….as its chief economist Stephen King warns global economy on the cusp of a major collapse.

It’s no longer the lunatic fringe of forecasters who are warning about a coming apocalypse for the global economy. Perhaps it is time to sit up and pay attention rather than wait to be overcome by doom and gloom.

HSBC’s Chief Economist calls explains why the world could be on the cusp of a major collapse. Not surprisingly perhaps the bank has finally joined the gold bulls…

Video link click here!

4 Of The Most Astonishing Charts Of The War In Gold, Silver And The U.S. Dollar

Posted by King World News

on Thursday, 21 May 2015 12:45

King-World-News-Maguire-This-Triggered-Todays-Massive-Selloff-In-Gold-Silver-1728x800 cToday King World News is pleased to share a fantastic piece which shows 4 of the most astonishing charts of the war in gold, silver and the U.S. dollar.  This also includes one truly remarkable illustration that all KWN readers around the world must see.

King World News note:  The chart below shows there is still a great deal of “smart money” short positions in the U.S. dollar.  They have been covering during the recent plunge in the dollar, but are still historically very net-short.

…..read more HERE

Gold’s Breakout Fails…

Posted by Hard Assets Investor

on Wednesday, 20 May 2015 14:14

Silver Still The Cheaper Metal

The dollar’s comeback pushes gold back into its range.

Despite hitting three-month highs in recent sessions, gold couldn’t hold above the key $1,220 level for long. Prices quickly dropped back below that level as the dollar surged higher, rebounding from three-month lows of its own. 

Gold

goldtechnicalchart20150519

Gold’s decline puts it back inside its short-term trading band between $1,180 and $1,220. This has been a comfortable zone for prices during the last two months. Without any other catalysts, gold may continue to fluctuate in this range based on day-to-day gyrations in the dollar.

Meanwhile, silver also retreated from three-month highs today. The gray metal remains tied at the hip with its more prominent cousin.

Silver 

 

silvertechnicalchart20150519

A look at the gold/silver ratio reveals that the relative value of gold and silver has largely been stable for the past seven months. Since October, the ratio has fluctuated between 70 and 75. Before that, the ratio had been steadily increasing from a low of about 32 in 2011.

Gold/Silver Ratio

goldsilverratiotechnicalchart20150519

From a historical perspective, silver is “cheap” compared to gold, but we’d wait for a break below 70 in the gold/silver ratio before calling an end to silver’s four years of underperformance.

….read page 2 HERE