Overseas trading has sent the prices of gold and silver surging as the precious metals now look poised to challenge their recent highs. Gerald Celente weighed in by adding that gold coin sales have soared a staggering 72%!
So King World News thought it was a good time to take a closer look at the gold, silver and mining share markets…
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Gold
You can see that sentiment in the gold market is below the “Excessive Optimism” level (see chart below).
Silver
You can see that sentiment in the silver market is also below the “Excessive Optimism” level (see chart below).
What About The Mining Shares?
There is still plenty of fear in the mining shares. Take a look at sentiment in the mining ETF GDX (see chart below).
What about sentiment in the the mining ETF GDXJ? Take a look for yourself (see chart below).
The bottom line is that while sentiment remains somewhat subdued, remember that surprises in bull markets almost always happen on the upside. The strength in overseas trading confirms once again that for now the trend is your friend in the gold, silver and mining share markets.
Gerald Celente on Gold & World Markets…
Gerald Celente: With the exception of last week’s strong job report from the United States, which have been discounted by many economists (link to Paul Craig Roberts http://www.paulcraigroberts.org/2016/08/05/another-phony-jobs-report-paul-craig-roberts/), the hard economic numbers ringing up around the world range between soft and lousy.
On the lousy side, China, the world’s second largest economy, reported worse than expected declines in exports and imports for July which fell 4.4 percent and 12.5 percent respectively.
U.S. Economic Woes Worst Since Depths Of Great Recession
As for the world’s number one economy, yesterday the US Labor Department reported productivity declined for the third straight quarter. Earlier this month, the Commerce Department reported that Gross Domestic Product slogged along at an annualized 1 percent for the first two quarters. Indeed, US economic growth since the recession ended is tracking at its weakest pace of any expansion since 1949.
And, according to FactSet, with almost 90 percent of the S&P 500 companies having reported second quarter results, aggregate earnings-per-share-are down 3.5 percent from last year. This will be the fifth quarter in a row of year-over-year declines … the worst since the depths of the Great Recession.
But The Party In Stocks Continues
Yet, despite the negative data and with the New York Stock Exchange ringing in the New Year with its worst start in its history, the Dow, along with the S&P and NASDAQ, keeps hitting new highs.
Even emerging markets, which were slammed in the first quarter, are back in the black and keep spiking higher. The Vanguard FTSE Emerging Markets ETF and the iShares MSCI Emerging Markets ETF are up an average of 15.9 percent year-to-date. Leading the 165 country index MSCI track is Brazil with its stock index up 60 percent year-to-date … despite being in the depths of its worst recession in nearly 100 years,
Planet Flooded With Money
Why? It has nothing to do with true price discovery or basic economic fundamentals. Simply, in a world of historic low and never in-the-history-of-the-world negative interest rate policy, plus massive central bank corporate/government bond buying schemes, the planet’s flooded with cheap money.
Thus, with ultra cheap cash to borrow and confident that central banks will not raise rates – particularly the US Fed, who, despite signaling four rate hikes for 2016 following their 25 basis point hike last December has not raised them nor are they expect to – investors are turning back to the developing world for higher yields while also betting heavily in US markets as the global safe-haven equity capital.
Indeed, the buzzword is TINA … “there is no alternative.” With interest rates and bond yields at or near historic lows, from high stake speculators to average savers, pensioners, pension funds, insurance companies … investors looking for meaningful returns are betting big on equities.
Sales Of Gold Coins Soar 72%!
Trend Alert: Investors not interested in buying negative-yielding bonds (guaranteed losses if held to maturity) and fearful of speculating in equity markets, have pushed the gold price up over 25 percent this year while pushing gold coin sales for the second quarter up 72 percent year-to-date. Thus, we maintain our forecast that when gold breaks strongly above $1,400 per ounce, it will spike toward $2,000.
Exclusive: Gerald Celente discusses more of the top trends of 2017, including what is going to shock the world in 2017 and you can listen to the incredible audio interview by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has now released the extraordinary audio interview with legendary short seller Bill Fleckenstein, where he discusses the short-term and big picture in the gold, silver, mining, and global markets, and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
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