Friday, December 23, 2016

Indicators for gold the best in 16 years as oversold markets show disconnect between bid and price

Well known and respected precious metals analyst Dave Kranzler published some new research derived from the recent and near unprecedented drop in the gold price for the past seven straight weeks.  And in his determination, gold indicators are flashing the best environment for a strong move upward in perhaps the past 16 years.

In addition to the factors outlined from Kranzler's work, when you look at the imploding currency and debt issues throughout the world that are even affecting China right now, along with the crashing of bonds in the U.S., evidence points to the world very soon rushing into gold as the only real safe haven left to protect one's wealth.

Dave Kranzler: I was looking at a lot of data as I was writing up this latest issue of the mining stock journal, and there are several indicators screaming buy about as loudly as I've ever seen a buy signal in the 15 years I've been doing this market. 
These indicators are both technical indicators and some are contrarian indicators.  For instance, I was chatting with Eric King the other day and I said to him just looking at the intra-day action, whenever they try to take silver below $16, and gold below $1130 it bounces back, and that's been the case now for at least a week.  And he said that if gold closes down this week, it will be the first time that he can recall ever that it's closed down seven weeks in a row on a weekly basis.
In the video below Kranzler lays out many of the indicators he has discovered that point towards a vastly oversold market, as well as a growing disconnect between the paper and physical markets.  And despite the continuous beat down in the gold price during the past seven weeks since the Presidential election, the one factor that hasn't changed is that demand for physical gold has increased during this time, and the current price does not reflect this supply and demand factor.

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