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1.The month of June is typically a boring one for gold
and silver price action, although the latter half of the month tends to be
a bit better for gold.
2.Please click here now.That's the seasonal
chart for silver, courtesy of Dimitri Speck.
3.India is the world's main market for silver, and demand
shrivels a bit during the May - June timeframe.
4.As a result, the silver price usually swoons, and
frustrated investors can make irrational statements about this mighty metal.
5.It's just a seasonal swoon, like an ocean tide
change.The silver price tide will come back stronger than ever, because
demand from the Hindu religion is cyclical and inelastic.
6.India is now the world's fastest growing major
economy.As the citizens get "richer", they celebrate key gold and
silver buying festivals with bigger purchases.
7.Please click here now.That's a five minute
bars chart for silver (July contract), highlighting yesterday's price action.
8.Without the bedrock of strong seasonal demand from
India right now, news like the upcoming US jobs report on Friday can create a
lot of intraday price volatility.
9.Please click here now. That's the seasonal
chart for gold.Gold typically bottoms around mid-June, after peaking around
mid-May.
10.In my professional opinion, as demand in India wanes a
bit, amateur technical analysts in the Western gold community tend to get
somewhat overly-nervous about what is really just a short term lull in
demand.
11.Unfortunately, I think a lot of the spike in fear
each May and June may be related to their excess use of leverage.
12.There's no need to point gigantic arrows towards
drastically lower prices on the gold and silver charts now, regardless of what
shapes, patterns, and signals appear to be there.
13.Charts don't make fundamentals.Fundamentals make
charts.
14.On that note, please click here now.That's the daily chart
for gold.The recent price action has been "seasonally perfect".A
peak occurred in mid-May, and gold has drifted lower, logically, since then.
15.The bottom seasonal line: Eager gold and silver
price enthusiasts should expect a major rally to begin in about two weeks,
and continue for several months.
16.Please click here now.Gold jewellery is the
biggest source of demand for gold, and most jewellers in China, Dubai, and
India are in "expansion mode".
17.Indian gold jewellery demand is growing about 15% a
year, while mine supply grows at about 1% a year.Looking at these numbers
alone, it doesn't take a rocket scientist to see why borrowing money from
banks to bet on lower gold and silver prices, is not very wise.
18.Gold jewellery was never taken by the US government
during the last bout of confiscation/revaluation.It can be insured and stored
legally in safe deposit boxes.So, it's truly great news to see the World Gold
Council taking concrete steps to further expand demand for the "ultimate
asset".
19.While demand for gold and silver are soft due to the
Hindu calendar, the US stock market is beginning to look a bit like an old
sailboat manned by heroin addicts, heading into a hurricane.
20.Please click here now.In the big picture, QE
has been tapered to zero, inflationary rate hikes are imminent, US frackers
are counting on OPEC to bail them out, and yet mainstream media continues to
call the US economy's minus 0.7% performance in 2015 Q1 a "world
leader".
21.Goldman Sachs economists are calling the US stock
market overvalued by almost every metric they use.They've lowered their long
term forecast to under 2% GDP growth.
22.Alan Greenspan, who has no "book to talk"
now, has called the US government's general approach to building a welfare
state "unsustainable".When considering the current minor
cyclical lull in gold and silver demand related to the Hindu religion,
against the background of the dire need for an America soaked in "debtaholic
napalm" to reflate itself, any sane investor is going choose the
mighty metals as their prime investment vehicle of choice in the coming
years.
23.Please click here now.That's the daily chart
for Barrick Gold.I've highlighted the main recent intermediate trend
movements with solid green and red arrows.The arrows are nicely in sync now,
with the seasonal gold chart trends.Note the excellent position of my key
14,7,7 Stochastics oscillator, at the bottom of the chart!
24.I use Newmont as a leading indicator for the entire
gold mining stock sector, and Barrick as a confirming indicator.Also, I
suggested a few months ago that Barrick was likely to form an interesting
right shoulder of a complex inverse head and shoulders bottom pattern, and
drop towards the $11 area.That's in play now, and all gold mining stock fans
should highlight the mid-June timeframe on their calendars.It's a highly
likely turning point for Barrick, and for the entire sector!
Special Offer For Website Readers:Please send me an Email to freereports4@gracelandupdates.com and I'll send you my free "GDXJ Leaders and Laggards"
report.I highlight the top five leading GDXJ stocks, and the worst five, and
show technical reasons why all ten are poised for a mid-June launch to the
upside!
Thanks!
Cheers
st
Stewart Thomson
Graceland Updates
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