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Friday, January 4, 2013

A little perspective, please

AS GOLD crashes amidst talk of the Fed's ending QE, and the healing of the US and European Economies, and the triumph of Free Market Capitalism, and the Taming of the Debt Crisis, and the Success of the Great Deleveraging, you're bound to hear a Chorus of Voices calling for the Death of the Gold Bull - surely led by Fed apologists and momentum traders like Gartman, and the hosts of CNBC, FOX BUSINESS NEWS, and the WALL STREET JOURNAL EDITORIAL STAFF

Believe them if you like.  However, if you've been following gold for the last 10 years you've heard this all before in 2004, 2008, 2011 and you'll hear it again in 2015, 2018..... etc etc.

Real Interest Rates are extremely NEGATIVE.  Yet The Central Banks can not allow interest rates to rise because the Debt Interest Payments will cause a multi year depression.  None of the Western Economies are showing any real growth when you strip out real inflation.  And growth will not come with a Vast Middle Class that is losing net worth year over year, month over month, day over day.  You can't sell rice, wheat, toilet paper, cars, beverages, clothing etc to just the 400 richest people in the world.

Nothing is changing.... not even on the charts below.

If you look at the six month daily chart below... wow does that look scary for gold

If you look at the 15 year daily chart below that... not so much

If you look at the 20 year weekly chart below that.... Gee, what's the fuss about?

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