Is 2015 The Year The Fed Comes To The Aid Of Gold And Silver Investors?

In a moment we will provide our answer to this interesting question. 

The correction in the price of gold and silver is now in its fourth year, and in the words of W. D. Gann:  “When time is up – price will turn.”


Featured is the weekly gold chart.  The current bull market began in 2002 with gold at $260.  The correction that started in 2011 has retraced 50% of the rise from $260 to $1930.   You will notice that the latest drop to the 50% retracement level has been met with non-confirmation from the supporting indicators (blue arrows).  This includes the important A/D line which has been positive from day one.  Notice also the buildup in volume during the recent turnaround (green box).

“Which countries contain the most peaceful, the most moral, and the happiest people?  Those people are found in the countries where the law least interferes  with private affairs; where the government is least felt; where the individual has the greatest scope,   and free opinion the greatest influence; where the administrative powers are fewest and simplest; where taxes are lightest and most nearly equal;….where individuals and groups most actively assume their responsibilities and, consequently where the morals of human beings are constantly improving; where trade, assemblies, and associations  are the least restricted; where mankind most nearly follows its own natural inclinations; in short, the happiest, most moral, most peaceful people are those who most nearly follow this principle:  although mankind is not perfect, still all hope rests upon the free and voluntary actions of persons within the limits of right; law or force is to be used for nothing except the administration of universal justice.” ….. Frederic Bastiat (from his booklet ‘The Law’)

Featured is the index that compares mining stocks (GDX) to gold bullion (GLD).  The sure sign of a bull market is when the miners outperform bullion.  The breakout at the blue arrow, after price formed a double bottom at 0.15, - a breakout that is confirmed by the supporting indicators, - is very significant.  When this index is rising, it provides positive energy for both the mining sector and gold bullion.  The breakout target is at the green arrow.

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Please do your own due diligence. Peter Degraaf is not responsible for your trading decisions.

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Alatar Bluecloak 6 years ago Member's comment

THANK YOU for the tribute to Bastiat. You got french spirited.. come again, Paris is not all of France.. and there are CHARLIEs (moderate muslims included) everywhere, for Charlie is the quintessence of french wit.. against all obscurantism. And be sure muslim french citizens prefer to live under secular rule than islamist rule : they may have a beer when thirsty.

Alexis Renault 6 years ago Member's comment

It's certainly horrible what's happening over in France now, my heart goes out to the country. But I enjoyed this article even more for the excellent charts and commentary. Well done.

Vintage Vixen 6 years ago Member's comment

Why didn't I buy gold at $500... why why why ;-)

Peter DeGraaf 6 years ago Author's comment

Believe it or not Vintage Vixen, gold is cheaper now at $1215 than it was at $500. This due to the amount of money that has been added to the system since then.

Susan Miller 6 years ago Member's comment

Thanks for the explanation and an excellent post.

Dick Kaplan 6 years ago Member's comment

Great charts, thank you.