Our good friend Ned Naylor-Leyland of Cheviot Asset Management is back with a MUST READ update on gold.
In light of the deep sell-off in the Gold price, I present 3 charts to clarify what has (and hasn’t) happened.
Chart 1 is a chart of Spot Gold, the second an illustration of what makes up the daily ‘Gold’ market, the third shows the enormous flow of physical metal from West to East in the context of Global mine supply.
There is an ongoing clash between the forces of paper supply and physical demand – paper supply has won the latest round, but its objective of satisfying and slaking demand for the real metal has failed entirely.
In the midst of continued massive cartel intervention in the gold and silver markets post QE4, Jim Sinclair sent an email alert to subscribers tonight advising that There is no top in gold, the gold price is going much higher than I originally anticipated.
Sinclair, who previously had stated he expects gold to surpass a minimum of $3,500/oz, and that gold would need to achieve over $10,000/ oz to balance US obligations, stated that I have seen this type of take down before- It was just prior to the major move in gold in the 70s wherein gold rose the most over the shortest period of time. Continue reading →