Here is a look at legend Pierre Lassonde and the takedown on the gold market.
Lassonde And The Gold Takedown
March 5 (King World News) – Fred Hickey: Legendary gold investor, Pierre Lassonde recently said that investment demand sets the ceiling price for gold, but the jewelry market sets the floor price. This is what Bitcoin doesn’t have – real physical buyers to take the other side of the speculators.
Speculators (led by hedge funds) have been pressing gold lower using their levered paper futures contracts (they never touch an ounce of gold) knowing all the technicians’ chart sell price levels. Breaking those levels causes “forced” selling. They push “trend” as far as they can…
Dire Warning For The US
Jon Case: To hear Jon Case’s dire warning for the US and also his discussion of the Gold & Silver markets CLICK HERE OR ON THE IMAGE BELOW.
But eventually they run into the “floor” set by real physical gold demand. The gap between the physical prices (where there are great shortages today) and the speculators’ much lower paper prices are as great as I’ve ever seen them – meaning paper pushers are running out of room.
Gold sentiment numbers are near rock bottom (DSI at 12), so sometime soon gold will rally and then the speculators (investment demand) will rush back in. Eventually they’ll push gold back up to a new “ceiling” (more record highs).
Keep Your Emotions In Check
As a gold investor, you cannot allow the hedge funds to stampede you, demoralize you into making bad (emotional) decisions. If you understand their games that will not happen. And you will buy gold when it’s on sale and sell it when everyone else is piling in (closer to the ceilings).
Another Sign Of A Bottom
Another sign we’re nearing a bottom. Gold Miners Bullish Percent Index (BPGDM) fell to just 24.14% today, (down from 100% at Aug. top). Excluding very brief March 2020 market liquidity plunge, BPGDM lowest since May 2019. Following that low, gold up 22% GDX up 53% over next 3 months.
Within hours KWN will be releasing an audio interview.
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