gold as an investment

Gold And Silver – A Second Chance To Win

Forex Kong 4 Comments

In the wake of President Trump´s “trouncing”of Hilary Clinton, markets have been less than kind to our beloved gold and silver mining stocks. But wait…..

The Daily Chart of IMG

second_chance_in_gold_and_silver

second_chance_in_gold_and_silver

Stepping back and looking at the bigger picture, one can most certainly see that “all is not lost”. In fact….as I continue to build positions in one little gem in particular ( IMG ) we can look at recent days movement in the stock ( and in my view the entire metals complex ) as an excellent “opportunity” to take your shot, likely having missed out on my last buy some weeks ago.

Keep in mind the time frame here, ands “how long it has taken” for this stock to:

  1. Finish it’s downtrend: If you consider October 10th “the bottom” we can see price movement “gradually” heading in the upward direction, but it’s not until the green box that an experienced / seasoned trader / chart reader can honestly “confirm”….
  2. Uptrend has been established: Why you ask?? Because the series of “lower lows and lower highs” ( the zig motion of assets in a downtrend ) is now broken with the establishment of a “higher high”. It’s this signal that essentially “confirms that the downtrend has ended” but then of course you get this….
  3. The first major pullback in a newly established uptrend: It’s the stock market right? Everything generally moves opposite to what the majority of traders are thinking / doing so it only makes sense to see a major “dump” directly following confirmation of a new trend right?? This is so basic, so common and such a standard that many an experienced trader develops plans to “always look to buy on the first major pullback in a newly established uptrend”.

You can see how the levels so closely match those of the previous downtrend ( the orange line across the chart ) as the same levels that once offered resistance, now offer support ( see what happens when you start marking your price levels! ) with this major reversal looking something like a big huge “W”.

Price could just as easily stick around these levels for some days, but if traditional technical charting is worth a damn….this would be an absolutely fantastic place to take a shot at entry, as I am adding to my current position here at 4.98.

The expected “pop n drop” post-election looks to have run it’s course, and I would expect that both gold and Euro will continue to move higher, with stocks and $USD finally topping out. Opportunity abound my people….all you need to do is pull the trigger and keep yourselves protected.

Hope it helps. Have a great weekend everyone.

Kong. Gone.

Gold Mining – We Humans Like To Dig

Forex Kong Got something to say?

In light of the recent ( and suggested ) pullback in Gold and Silver Mining Stocks…

I had to pull out an “oldy but a goodie”. Makes me laugh looking back….

Mining – Could it Be In Our Genes?

Looking ahead……..this pullback and continued build of small gold and silver miners should prove to be very, very profitable.

Forex_Kong_Face_Book

Gold And Silver Miners – You Missed The Boat

Forex Kong 1 Comment

Not to say there isn’t considerable medium / long-term opportunity in the miners ( cuz there is ! ) – you may have missed the boat.

This chart will make your head spin as……the gains have been nuts. Even Gary Savage ( apparently ) got this one right.

 

Pullback_Exected_in_Gold_and_Silver

Pullback_Exected_in_Gold_and_Silver

Short term – I would encourage you to just stay put, but as I’ve always said – Get this stuff on your radar! You need to identify levels, plot support and resistance on your charts, keep a pad of paper by the computer for f@*k sake!

Consider “post election” as a fantastic time to enter, as we are obviously over extended here. But get a list together! Make a plan! It won’t matter if the people of the Unite States vote for – the puppet or the clown.

Gold/Silver will both head for the moon as the entire planet completely freaks out.

Gold Smashed This A.M – No Worries At All

Forex Kong 10 Comments

At this point in the game I have little concern for the price of gold as it’s trading almost exactly in tandem with the Japanese Yen ( JPY ) – both functioning as obvious “safe havens”.

These assets obviously gain momentum when “risk comes off” and considering that markets are now re testing the near term highs – what should one expect? ( insert lightbulb above head here )

The average investor, caught in the headlights of the main stream media and The Fed is certainly not “seeking safety” here as of this morning

Appreciate that nearly everything I track is stretched to extremes right now and rightfully so as…we are so very close to one of the largest turns this market will have seen in a very long time.

Why would  gold be any different? A couple bucks here and a couple bucks there – not to worry.

These low volume days ( some of the lowest volume days of the year ) are legendary for getting people excited / worried as prices in “all assets” swing to extremes, washing out weak hands, luring in new buyers etc…

It’s always this way before a major turn in markets as the boys at your local brokerage / bank take the opportunity to push prices “as far in their favor as possible” before dumping.

September has everyone back in their cubicles. Likely back in their cubicles selling stocks and buying gold.

Gold is good – just not particularly “speedy” here at the moment.

Kong Buys – Gold And Silver Miners Galore

Forex Kong 2 Comments

I’ve started a small portfolio ( actually via Kong Senior up North with his “Canadian loonies” – Hey pop!) including the following names, and harken back to a post from the “grand productive days” before all this blogging and investing got so “serious”.

MUX, ANV, EXK, LSG, AGI

Mining – Could It Be In Our Genes?

Could the ancient astronaut theory hold true?

That thousands of years ago celestial visitors came to our planet in search of materials needed for their very survival – and in realizing the difficulties in extracting these materials from the ground, developed modern man to essentially do the hard work for them? When you really think about it…..it’s really not that far off.

As a young boy I remember a hoax that played out at my elementary school. A group of the older kids had painted a bunch of small rocks with gold model paint and hid them out in the sand of the school’s playground. Once the word got out….I recall the excitement and anticipation sitting there in my tiny desk, staring at the clock, squirming in my chair, waiting for the bell to ring. “Gold! Gold! – they’ve found gold in the playground!”.

We’d trip over ourselves racing out the door – eager to be the first to lay our hands on even the smallest spec of the glorious stuff. We spent hours on our hands and knees sifting, searching for our fortunes.

In the end…….I never found a single piece.

A silly young boy indeed –  but is it really any different now as adults?

Maybe mining is in our genes.

We’ll see how these little nuggets pay off here in a couple of months.

 

Gold Going Down – Snake Oil Salesmen As Well

Forex Kong 26 Comments

How is it that you continue to flush your money down the toilet?

It’s been pointed out here time and time again that “gold is not a trade” yet you continue to “buy the snake oil” these chicken shit / bullshit / con artist / “financial bloggers” keep selling you.

Perhaps you’ve gotten lazy, and have put your trust in others to “navigate the mine field for you” well……..

That’s just plain stupid.

Gold is going lower because ( big fat light bulb above your head )……Gold is going lower.

I’m not “selling you the reason”. I don’t need a chart.

You’ve got to stop looking for the “freebie” ( as you lose your ass ) and start looking at some of this stuff for yourselves.

What could some “clown in a desert” possibly know about the future of Gold – that you can’t just as easily figure out for yourself?

Blank stare…head scratch….akward silence…..dead air…….

……….

Exactly.

 

 

 

Gold and USD – Passing In The Night

Forex Kong 8 Comments

With the expected move out of USD coming together over night, we’ve seen more than enough follow through here to confirm what was suggested yesterday.

Stocks won’t hang on here, and I expect the power of the U.S Dollar “repatriation trade” to flatten gold here as well.

For those of you “investor types” I imagine you’ve come this far so a couple more months ( and perhaps further drawdown ) as gold slides into “its final leg lower” likely won’t kill you.

However for those looking at gold,silver and the related mining stocks as a trade….unfortunately – I see lower prices – before higher.

This is no “small blip” as far as USD is concerned, likely marking a significant turn “not only in the currency” but “in all” that it affects.

So far only the European currencies have taken the initial hit, but it won’t be too long now til we see the Canadian Dollar, as well Australian and New Zealand follow suit, and I’m not talking about a trade here……I’m talking about a major shift over the medium and even long-term investment horizons.

Top call still very much so “intact” here as of today – with the “Members of Kong” doing very nicely in our first month working together. Feel free to poke around the members site, and hey….you can even join us if you’d like. I’d take an additional 20 if you want to contact me over the weekend at : [email protected]

Have a great weekend everyone! It’s sun sun sunshine here!

 

 

Chinese Fire Sale – U.S Dollar Up In Smoke

Forex Kong 43 Comments

Make no mistake…China “will” take the hit on those warehouses filled with “useless dollar bills”, or at least what’s left of them by the time they’ve used all they can to buy gold.

As the “macro plans” continue to take shape, the Chinese will soon look back on the “massive fires that raged through the warehouse district” as a passing story in the news – in the context of a “time of change”.

Consider trading hockey cards with a couple of the other kids on your street. All of the same set and series, until a month or two later a new set is introduced and you start trading those. More kids are buying and trading these “new cards” until finally – all you’re left with is a tiny box of the “old ones” eating up precious storage space under your bed.

Eventually you forget all about them, as the trade of these “new cards” now has you buying and trading with little concern for the “few dollars lost” on the inventory of “old cards” gathering mold underneath your bed.

I think that sums it up.

As China continues to grow its domestic economy, and promote trade in Yuan as opposed to the U.S Dollar, it’s really only a matter of time until both China as well “a large portion of the industrialized world” separates completely from any dependence on a U.S imposed system of trade in U.S Dollars.

We good here?

No terrorism here. No “bash America” / China to rule the world type thing no.

Just a simple outline of how a couple of countries on this planet have grown to be less “export dependent” and more “domestically driven” and far less interested in the purchase and hold of U.S “funny money”- with the unfortunate result leaving The United States and it’s continued devaluation of the U.S Dollar  – out in the cold.

As the Fed continues to “mask” the true devaluation of the U.S Dollar by shorting the gold paper market and driving prices down, China gladly scoops up every ounce she can – demanding “actual delivery of the physical gold”.

China will continue to not only produce more gold, but as well purchase more gold “on the cheap” with every single “Fed raid in the paper market” to soon present the Yuan as a completely convertible currency on the global stage.

Complete with stockpiles of “real gold” sitting in vast warehouses behind it…..somewhere on the other side of the tracks.

So what does this mean for the future of the U.S Dollar and it’s use as the worlds reserve currency? What does this mean for the massive amounts of money previously gained by the U.S via the “use” of USD in trade world wide – soon to be lost?

 

 

The Nixon Shock – Gold, China And USD

Forex Kong 8 Comments

I want to explain something, that I think most of you will find beneficial ( much of the material reworded from Wikipedia ) as well bring it “up to speed” as to what it means in today’s day and age. This might go on for a couple of posts.

After WWII the “international financial powers that be” agreed to create a system wherein the U.S Dollar was placed deliberately as the anchor of the system, with the US government guaranteeing that every US dollar held in reserve – could be exchanged at a fixed rate for gold.

Everyone agreed to use a single currency ( the U.S Dollar ) for international trade, and that those dollars could be exchanged for a “fixed rate of 35 dollars” for an ounce of gold.

This is what is meant by a “gold backed” currency, providing holders of that currency the “confidence” that the pieces of paper in their hands are “actually worth something”…that something being gold.

For every dollar on the planet an equal amount / value in gold, should the holder of that dollar choose to own gold instead.

Got it? Excellent.

This made things “relatively” straight forward as countries around the world “pegged” their local currency to the U.S Dollar, and the U.S Dollar was pegged to the price of gold.

Price “stability” had been established.

So for the first years after World War II, the system worked well as foreigners wanted dollars in order to  spend on American goods such as cars, steel “manufactured” in the U.S.

The U.S. owned over half the world’s official gold reserves ( 574 million ounces at the end of World War II ) so the system appeared secure.

Well….by around 1966 ( due to excessive spending by the U.S for the Vietnam War as well many domestic programs ) the U.S realized that foreign banks reserves had grown to about $14 billion dollars, while the United States had only $13.2 billion in gold reserve. Of those reserves, only $3.2 billion was able to cover foreign holdings as the rest was covering domestic holdings.

essentially the U.S had printed ” a few too many dollars” to cover the actual amount of physical gold held in their vaults.

Soon foreign countries ( holding depreciating USD ) began demanding redemption of these dollars for “real gold”. Switzerland redeemed $50 million, then France acquired $191 million etc until finally on the afternoon of Friday, August 13, 1971 President Nixon “literally pulled the rug out from under the system” ( The Nixon Shock ) and closed the gold window – forbidding foreign holders of U.S Dollars from exchanging them for gold, essentially “sticking foreign holders of U.S Dollars” with a currency now set to be dramatically devalued.

The Nixon Shock unleashed enormous speculation against the dollar as you can imagine. With no gold behind them, the value of “boatloads” of U.S Dollars distributed world wide……..now put into question.

I promise I’ll skip the middle part…and get this up to what’s happening in the world “right now” with China’s movement/interests  in particular.