Aden Sisters: Gold Finally Bombed Out $TNR.v $MUX $GDX $NG $ABX $RGLD

  After yesterday's huge run Gold is confirming the Head and Shoulder Bullish reversal. Weekly close above $1,317 will be very important.

 Kirill Klip.:

FED Has Found ... Sorry, Created Inflation To Save Us All - Gold Celebrates ... Quietly So Far.

"Gold and Silver are acting today like if the Chinese virus "Missing Collateral" has finally reached the London BOE vaults!"

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

Kitco:

Gold Finally Bombed Out

Gold dropped sharply a couple of weeks ago. Many experts can’t explain why, but there are several reasons that make sense…

SAFE HAVEN?

First, gold entered a seasonally slow period. This could last for another month or so but seasonality alone doesn’t explain why the decline was so steep and sudden.

More impressive, gold’s safe haven appeal has diminished somewhat. Following the Ukraine elections, for instance, concerns eased. But with Iraq now heating up, gold could continue its current rebound rise.

THE TECHNICAL PICTURE

Meanwhile, gold had strong support at $1280. This level had been tested several times but it clearly broke.

This means gold will probably continue to hold above the $1200 area. It also suggests gold could continue forming a head and shoulders bottom (see LS, H, RS on Chart 1).

Plus, there are growing signs indicating this could end up being the bottom for this decline, which has been in force since 2011- 12.

Looking at gold’s big picture since 1968, you’ll see what we mean.

Chart 2A shows that gold’s decline of the last few years looks small in the big picture, within the mega uptrending channel since 1968. 

Note that gold has had two major bull markets, in the 1970s and in the 2000s. 

The major rise in the ‘70s didn’t break its bull market red uptrend until 1984, several years after the peak in 1980.

The bull market red uptrend since 2001, however, is still intact.  On a big picture basis, it’ll be important to see if this trend holds. That is, as long as gold stays above the lows of last year, at $1210, this trend will stay solid. 

And according to gold’s leading long term indicator (B), it’s saying that gold remains at an extreme low area... In fact, this is the lowest it’s been since the 1980s.

Since these low areas tend to coincide with bottoms in the gold price, this tells us that gold is totally bombed out and the lows of last year are unlikely to be broken.

This doesn’t mean gold will soar from here.  Eventually yes, but for now we could see more backing and filling.

All things considered, it looks more like 2015 could be the year of a strong change to the upside.

DEFLATION GAINING MOMENTUM

One important reason why is because deflationary pressures have been intensifying.

Although there has been some improvement, global economies remain sluggish, despite massive stimulus efforts from the biggest central banks in the world.

This suggests that stimulus measures will likely continue in order to boost the global economies. And even though these measures may eventually cause inflation, the current economic sluggishness is stubborn and it’s feeding deflation.

Our inflation-deflation barometer is an indicator that measures rising inflation against falling deflation by using a ratio between gold and bonds.

Historically, gold has been used to measure inflation and bonds have measured deflation.

Chart 3 shows the ratio of the two since 2003. Notice the steady rise in gold (inflation) against bonds (deflation) through 2011. Moreover, after the 2011 peak in gold, bonds began to strengthen against gold and they’ve continued to be stronger since then.

In other words, we could still see bonds strengthen even more against gold in the months ahead. This would coincide with a sluggish economic outlook. But again, that may not be the case for long.

SILVER IS CHEAP

At the same time, silver is super cheap. It’s also cheap compared to most of the other markets.

Demand for silver is also very good.  A recent report said that physical demand rose to a record last year. 

This growing demand ties in well with the technical situation in silver. It too is bombed out and, like gold, it’ll likely head higher in the upcoming months.

Mary Anne & Pamela Aden

--
Mary Anne & Pamela Aden are well known analysts and editors of The Aden Forecast, a market newsletter providing specific forecasts and recommendations on gold, stocks, interest rates and the other major markets. For more information, go to www.adenforecast.com   or  www.goldchartsrus.net"

How the Bitcoin protocol actually works. How anonymous is Bitcoin?

  

  Bubbles are irresistible by nature, they are sucking you up with the rest of the crowd in the parabolic move. When everybody is getting rich literally overnight, how can you stay away? Now we have The One for the Meme generation.

  Not only the FED is watching the important levels in Gold and Bitcoin, Winklevoss twins are pumping hard Bitcoin today on the reddit fighting the FED. They came out with the solid target price of $40,000, so before at least $39,999 there is nothing to worry about. 

  We warned about the Central Banks Launching Worldwide Coordinated Attack On Bitcoin as we see it and now it is time to dig into Bitcoin fundamentals and technical architecture - what will be left from this brilliant idea after The Bubble Crash.

  Michael Nielsen describes it with very good technical detail level and you can find his full work on the link, we will provide here only the extract on the one of the most important value propositions of Bitcoin - its anonymity. Brian Hanley has published very interesting research paper on Bitcoin, which we would like to share today as well. And Francois R. Velde presents the Bitcoin Primer with the view from Chicago FED. 

Brian P. Hanley: The False Premises and Promises of Bitcoin.

"[bitcoin is]...a very clever practical joke by someone who is having enormous fun exposing in the most sophisticated way imaginable the naivety of clever mathematicians, economists and/or rich speculators. ... or ... The cleverest con trick ever conceived, and probably one of the most rewarding."

Chicago FED Letter - Bitcoin: A Primer

"The term “mining” may lead one to think that bitcoin is not fiduciary. It is true that real resources (computing hardware and energy) are expended in creating bitcoins. Since entry to min- ing is free, the value of these resources will be the market value of bitcoins pro- duced (whose number per day does not depend on the size of the network). But once created, the bitcoin has no value other than in exchange, contrary to a gold coin."

Central Banks Launching Worldwide Coordinated Attack On Bitcoin

  Technical analysis for Bitcoin is basically meaningless with so much noise in the print, but the chart below from TheArmoTrader tells the story better than thousand words. After all recent events described below we are issuing our Warning and the line in the sand is $800 for Bitcoin now. With coordinated attack Bitcoin can be pushed below it, everything is prepared for it now. We do not have any inside, but has been in the Gold market and observed its manipulation enough to see what is coming. If somebody is interested now to Kill the Bitcoin brilliant idea hijacked by speculators with  Crashing The Bubble - it is time. Whether there are enough interested parties to do so  you have to decide for yourself. Will it happen now? We will see very soon. The most unfortunate thing is that some influential people are leading the uninformed "freedom fighters" towards just one more slaughterhouse now.

  Central Banks are getting all together now to celebrate Federal Reserve 100 Year Anniversary. If somebody thought that Bitcoin with other "listed" 42 Crypto-Currencies can challenge the banksters for real, please think twice and take at least the profit! We need more smart people with capital to join the real values when Gold and Silver will be shining again after Special Op "Gold 2.0" to distract 99% from Gold will be over. FED is still silent, but crackdown on Bitcoin is already in place. Now Central Banks of Australia and New Zealand have issued Bitcoin warning. All these actions are coordinated, as you can see now. Pump it Up and Crash it hard - how many will be left to support the brilliant idea? We will note one more time very important coincidence: according to the reports JPMorgan is Net Long Gold now. Crashing Bitcoin will send Gold much higher, maybe JPMorgan knows something the others don't?"

Michael Nielsen:

How the Bitcoin protocol actually works

"How anonymous is Bitcoin? Many people claim that Bitcoin can be used anonymously. This claim has led to the formation of marketplaces such as Silk Road (and various successors), which specialize in illegal goods. However, the claim that Bitcoin is anonymous is a myth. The block chain is public, meaning that it’s possible for anyone to see every Bitcoin transaction ever. Although Bitcoin addresses aren’t immediately associated to real-world identities, computer scientists have done a great deal of work figuring out how to de-anonymize “anonymous” social networks. The block chain is a marvellous target for these techniques. I will be extremely surprised if the great majority of Bitcoin users are not identified with relatively high confidence and ease in the near future. The confidence won’t be high enough to achieve convictions, but will be high enough to identify likely targets. Furthermore, identification will be retrospective, meaning that someone who bought drugs on Silk Road in 2011 will still be identifiable on the basis of the block chain in, say, 2020. These de-anonymization techniques are well known to computer scientists, and, one presumes, therefore to the NSA. I would not be at all surprised if the NSA and other agencies have already de-anonymized many users. It is, in fact, ironic that Bitcoin is often touted as anonymous. It’s not. Bitcoin is, instead, perhaps the most open and transparent financial instrument the world has ever seen."

  

ZeroHedge: BofAML Turns Bullish On Gold GLD, MUX, TNR.v, GDX

US Dollar weekly chart is very weak with its closing below MA200 last week.

  

  ZeroHedge reports about BofAML Bullish Call on Gold. This technical analysis bodies well with our own observations. Weekly closing on US Dollar below 80.00 and Gold above $1300 will be very important on Friday.

HedgehogTrader: Canadian Venture Exchange Breaks Epic Downtrend! GLD, MUX, TNR.v, GDX, SLV

 "We are following here very talented HedgehogTrader - he has developed very interesting trading system based on combination of technical, fundamental, insider buying analyses and proprietary Alpha Signals. He has issued the Call on CDNX today.

  It goes well with our own recent observations, and you can find more on HedgehogTrader work at his website and twitter. He follows McEwen Mining and TNR Gold as well. If this his Call proves to be right again, these two companies will benefit from huge Short position in McEwen Mining and any positive developments with Los Azules copper project in Argentina."

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

"Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice."

ZeroHedge:

BofAML Turns Bullish On Gold

BofAML's MacNeil Curry is changing his view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the two-month downtrend (confirmed on the break of 1330) tells him that a medium-term base and bullish turn is unfolding. BoFAML looks for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions Curry suggest buying dips into 1309, cautioning that this bullish view is "wrong" if gold breaks below 1251. For those awaiting additional confirmation of a turn, Curry notes you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).

Eric Sprott: Gold and Silver Stocks Are In The Bull Market Again GDX, GDXJ, MUX, TNR.v

  

GDX has Three White Soldiers bullish candles and Buy signal confirmed by MACD.

GDXJ has Three White Soldiers bullish candles and Buy signal confirmed by MACD.

  Eric Sprott has spell it out for the rest of us: Gold and Silver Stocks Are In The Bull Market Again and Gold to follow.  Eric Sprott calls this market situation as the most spectacular in his investment career. His Gold Bull margins calculations and projections for the share prices for Gold and Silver Stocks make our morning bright today.

Gold Break Out: Jim Sinclair - The three entities that called the $1900 in gold are back long. GLD, SLV, GDX, MUX, TNR.v

"Now we have the full A Team calling for the New Bull Leg in Gold. Summer doll drums time out is officially over. Gold was over 1400 intraday and Silver is over 24 now. Junior miners are exploding to the upside with McEwen Mining pushing 3 dollar mark. Survived Juniors will show this Fall what is called the ten baggers again."

Rick Rule On Gold & Resources: "The Stage Is Set For An Absolutely Dramatic Recovery" TNR.v, MUX

"To make this dramatic and pleasant for Survivors picture come true we need just one thing - Pros with the money coming into the market, without them it will always be only the wishful thinking. We can see them coming now."

King World News:

Billionaire Sprott – How Investors Can Make 3,000 In 1 Year!

Today billionaire Eric Sprott stunned KWN when he spoke about how investors can make a staggering 3,000% in less than a year.  Sprott called this “the greatest” investment opportunity he has ever seen in his life.  He also spoke with King World News about the unprecedented events that are taking place in the gold and silver markets.  This is the first in a series of interviews with Sprott that will be released today.  Below is what Sprott, who is Chairman of Sprott Asset Management, had to say in part I of this remarkable interview series.

Sprott:  “I think the most important thing that your listeners (and readers) would want to understand is that we have a bull market in silver stocks -- they are up about 50%, we’ve got a bull market in gold stocks -- they are up something approaching 30%, we have a bull market in silver -- it’s up over 20%. 

We don’t have a bull market confirmed in gold yet, but it’s my expectation that this will happen forthwith.

“As I look at the landscape and see all of the obvious things that indicate a shortage of gold, and a lot of demand for silver, it would seem to me that we are going to see some serious price spikes here.

I’m suggesting that within the next year we would see something like $2,400 (for gold).  What all of that implies is the opportunity in the equity side (mining stocks) is spectacular ... There will be some (companies) that will go up 10, 20, and 30 times (in price) within a year.

To me, those are opportunities that rarely present themselves, and I’ve been in this business a long, long time.  I don’t even think I’ve seen an opportunity where you could imagine that within a year you could make 3,000% on something.  So I think it’s a great opportunity for people. 

The market is already telling us we are in a bull market, although most people probably don’t feel that way.  But you look at the results so far and they have been pretty stunning in terms of the rallies in the (mining) stocks.  So I really believe it’s a great time to be buying (those) equities here.

I would suggest to your listeners (and readers) that they don’t wait too long because things are happening very, very rapidly.  I can tell you I’ve been involved in a number of private placements lately, to try to position ourselves for some of these larger moves that we think are likely to happen.”

Eric King:  “I’m going back a little bit now, Eric, but I said this to you at one point in 2009, there was a 10-year run where I strongly believe you were the most accurate forecaster in the world with your written works.  You rose to become a billionaire, but as John Embry said to me, ‘People don’t realize it, but Eric and I, we rose from nothing.  We were broke when we were younger.’  And you’ve made fortunes in the investing world.  What you are saying today is, this is literally one of the greatest (investing) opportunities you’ve ever seen in your life.”

Sprott:  “Well, as I sit back and look at it, Eric, I think it is the greatest.  To imagine you could make that much money (3,000%) in one year, as other financial markets are not performing well.  And here we have this huge opportunity to own the metals, and/or the shares, and make this outsized return, which is exactly what happened in that last decade when the gold stocks rallied by 1,800% off the low.

So that’s the type of thing that we’re looking at here -- a re-continuation of that phase.  We took a 2-year pause, but it certainly looks like it has restarted again.”

Billionaire Sprott – How Investors Can Make 3,000 In 1 Year!

Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

  

  Charles Nenner talks about the potential of another recession in the U.S. and his Call must be taken seriously. Surging rates these days even before the beginning of the Tapering will put enormous pressure on the consumers and coupled with high gas prices his prediction can become true again.

Adam Hamilton: Gold and GLD Exodus Reversal MUX, TNR.v

"Adam Hamilton provides now a very compelling case for the General Equity Markets and GLD relationships and correlations and if you do not think that trees can grow straight up to the sky we are at the historical point in the markets development in the age of FED central planning now." 

Charles Nenner Research: Cycles Say Gold is Bottoming.

"If the history is of any guidance, today's BOE statement and Pound Slaughtering is the sign of things to come in the US Former Reserve Currency Of Choice Land. We will remind everybody that QE was first started by BOE and it was called as it is: Money Printing."

Money News:

Charles Nenner to Moneynews: US Headed for Recession and It's 'Going to Be Bad'

Monday, 19 Aug 2013 

By Glenn J. Kalinoski and Kathleen Walter

Technical analyst Charles Nenner didn’t mince words when asked about the United States facing another recession.

"It's going to be bad," Nenner told Newsmax TV in an exclusive interview.

"It's very scary because we didn't have a lot of growth and when this economic expansion is over, we're going to be in trouble," the founder and president of the Charles Nenner Research Center said.

Watch our exclusive video. Story continues below.

"We didn't leverage enough. Cycles go up, go down, take three and a half, four, five years, but if you almost don't jump up and then you're jumping down, then you've jumped down from a much lower level."

He said that "the economy is not going to do much this year. It's going to pick up a little bit next year into the third quarter and then it's going to be messy again."

The economy will be fairly stable until the end of next year, "then we're going back into recession," said Nenner, who correctly called the 2007 downturn.

He also warned that the economy faces other problems as well, such as deflation, commonly defined as a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0 percent.

"Deflation is a very serious problem we can still have to deal with and that's much worse than inflation," he said. "So my fear is deflation, not inflation. Inflation will come, it will take another three years until it starts."

He added that he doesn’t see much improvement when it comes to the nation's unemployment level.

"The problem is structural," he said. "There was a lot of outsourcing and then a lot of jobs … don't need a lot of people anymore because of the Internet and IT and all of the technology. People have to think a little bit in a different way and it's going to be very hard to get the unemployment down."

The wide-ranging interview turned to the outlook for gold. "It's a short term trade because it's going to bounce around," he said.

"Until we really have inflation coming, I don't see gold going back to the highs. It will go two and a half thousand. It's just making a bottom slowly, and we are boost[ing] longer term on gold, but it will take time."

He also discussed his outlook for stocks.

"We had a target of 1,720 on the S&P, so once we were [at] about 1,700 we sold all the stocks," he said. "The sentiment [is] too extreme. The market is very risky, so we don't go in anymore. We've been out now for the last three, four months and we're just standing aside."