The Roadmap From A Gold Bottom To A Mania

On the heels of historic movements in key global markets, today 40-year veteran, Robert Fitzwilson, put together another tremendous piece. Fitzwilson, who is founder of The Portola Group, laid out the roadmap from a gold bottom to a coming mania. Below is Fitzwilson’s outstanding and exclusive piece for KWN.

Fitzwilson: On June 27th, in a note to clients and friends of the firm, we suggested that the panic in the metals and mining sectors was so extreme that it had to be a bottom by everything we have experienced and studied in our careers. The chart below suggests that our call was correct, at least based upon what has ensued so far.

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

The top line is the Amex “Gold Bug’s Index” (HUI) which represents a basket of gold mining companies. The bottom two are for the S&P 500 and gold. The returns in the chart are for the period since our call to the close of trading last week. As you can see the Index nearly tripled the return of gold itself….

“It is also interesting that the Index nearly tripled the return of the S&P 500 Index in that same period. Hardly a trading session goes by without the headline being “The S&P 500 and the Dow Jones Indexes hit new highs”. The reality is that the bulk of the stock market strength that had been so loudly touted occurred during the first quarter of this year.

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/21_The_Roadmap_From_A_Gold_Bottom_To_A_Mania.html

The Fed Is Creating Enormous Financial Instability

Today John Mauldin warned King World News that the U. S. Federal Reserve is creating enormous instability in the global financial system. Mauldin, who is President of Millennium Wave Securities, also cautioned that if things spin out of control, “the central bank doesn’t have any weapons.”

Mauldin: “I’ve been doing a lot of thinking about the future. I’m in the process of finishing up a book with the co-author of ‘End Game.’ We have a book coming out this fall called, ‘Code Red.’

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

We are writing about quantitative easing, currency wars, and the next 5 years. The upshot of it is that our current policies in both governments, and in central banking, are coming to a point that it’s (actually) increasing the instability of the system….

“As an example, Bernanke gave a hint that they might begin to reduce the amount of money they are injecting into the system and the stock market just threw up. So within a week there were like 6 or 7 Federal Reserve types that were out saying, ‘No, no, no. That’s not what we meant.’

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_Mauldin_-_The_Fed_Is_Creating_Enormous_Financial_Instability.html

“This Will Trigger A Tidal Wave Of Short Covering In Gold”

With Ben Bernanke ready to deliver his semi-annual monetary policy report to Congress starting today, a legend in the business warned King World News about what is going to “trigger a tidal wave of short covering in gold.” Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also spoke with KWN about the massive global demand for both gold and silver and what he is directly experiencing in the marketplace.

Barron: “Right now I am focused on the gold price. We are up over $100 off the lows on gold and silver has broken through $20. All of this is thanks to Bernanke, who shot himself in the foot yet again with talk about tapering QE again. This trashed the stock market briefly and had spectacularly chaotic consequences in the bond market as well….

  • Dow Jones 30,000 Trigger Leaked by 27-Year-Old Stock Research Firm CLICK HERE
  • The Inevitable: Dow Jones 30,000 CLICK HERE

“Anyway, the net effect was this caused a tremendous amount of disruption in key markets and I think he was chastised for that. So he came out with a speech and it was a complete turnaround from the FOMC minutes. The 180 degree turn was, ‘all systems go, and keep the printing presses going.’

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/7/17_This_Will_Trigger_A_Tidal_Wave_Of_Short_Covering_In_Gold.html