With Canada’s markets closed today for Thanksgiving holiday, here is a quick note from Fred Hickey and Felix Zulauf on gold, plus a stunning look at commodities.
Expect Big Moves In Commodities
October 8 (King World News) – From Ronald Stoferle at Incrementum: Compared to the S&P 500, the GSCI Commodity Index (TR) is trading at its lowest level since 1971 (see stunning chart below).
Expect Massive Upside Moves In Commodities
Moreover, the ratio trades significantly below its long-term median of 4.15. If we postulate the general tendency of reversion to the mean, we may anticipate attractive commodities investment opportunities.
Below is one question and answer from Bill Fleckenstein and one of his subscribers.
Fred Hickey & Felix Zulauf On Gold
Question: (Fred) Hickey: “We’re still waiting for the return of U.S. demand to propel gold significantly higher. As we saw at the 2000-2001 gold bottom and the simultaneous top for the stock market bubble, U.S. demand for gold didn’t accelerate until investors’ love affair with the stock market (primarily tech stocks) had ended.”
Felix Zulauf: “Monetary tightening isn’t bullish for gold. The price might bounce for a few weeks, but I don’t see it moving up in a big way. It is way too early for the bull market in gold. We need a sharp decline in equities (which would lead to further easing of monetary policy) or a weakening of the U.S. economy, which would stop the Fed from tightening further.”
Do you agree that gold won’t skyrocket until the U.S. stock market sells off significantly?
Answer from Fleck: “Skyrocket” is a big move I assume. We probably can’t get that without some cracking of the Goldilocks story, so it probably does need the stock market to weaken, but that doesn’t mean gold can’t really in the interim. In other words, gold could be a fair bit higher when the stock market breaks. Felix is not accurate in that statement. Gold has historically not been held back by rising rates.”
***KWN has now released the audio interview with Rick Rule discussing the gold, silver, uranium, crude oil and interest rate markets and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED: This Is Why The Price Of Gold Is Getting Hit Today, Plus Trouble In China & Italy CLICK HERE TO READ.
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