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DISCLAIMER

The opinions expressed in this blog are for informative purposes only. To the best of our knowledge, the information presented in the blog are accurate, however, we do not guarantee the accuracy of information. The views conveyed do not constitute investment advice and readers should seek professional advice when making financial decisions. Readers should not rely on the information, and those who do, do so at their own risk. Paramount Gold Nevada Corp. is not licensed as an investment advisor.

The Stock Market and Gold

What is the stock market trying to tell us?

First and foremost, valuations are too high. Third quarter results have been disappointing. Investors are realizing that sales and earnings cannot grow fast enough to keep the market at record valuations.

Second, the stock market is telling us that its advance has been too narrow…too dependent upon a handful of stocks driven higher […]

The Gold Market Is Turning (We Think)

As we have noted, markets are deep into what we have called the Tariff Trade based on the assumption that Trump would win his trade war with China and that he would do so before it had any serious negative impact on the US economy. The Tariff Trade was to go long certain US equities and the dollar and short […]

Why the Next Market Crash Will Not Take Gold Down

The global financial crisis of 2008 was essentially caused by excessive leverage, a loss of confidence in real estate credit and a resulting sudden collapse of liquidity in the financial system. The central bank response was to lower interest rates and flood markets with liquidity. Since then, debt loads have increased more than 30% and the percentage of higher risk […]

For Gold, It’s All About the Dollar

Positioning, sentiment and market structure continue to favour a powerful rally in gold. The Commitment Of Traders report released by the CME Group on September 7, 2018, shows the gross speculative short position grew 1.3% to 213,259 contracts, just shy of the all-time record set two weeks ago. On a net basis, speculators are short 13,500 contracts, the largest short […]

Moving Towards a Reset

Gold is the ultimate safe haven, for two simple reasons. First, its total above ground supply only grows 1.4% per year, no matter what anyone does (and even this rate of increase is starting to fall as production levels have peaked). Second, gold is final settlement for the payment of obligations; it is universally accepted as itself, in physical form, […]

LOOKING FOR A TURN IN GOLD

For nearly four months now, gold has been pressured lower by a rising dollar; the inverse correlation has been almost exact. Gold has dropped 5.2% from its January 25, 2018 close of $1362 to its May 16 close of $1291.50. Meanwhile, the US dollar index has risen 5.4% from this year’s low close of 88.50 on February 15, 2018 to […]

LOOKING BULLISH FOR GOLD

It now appears that the gold complex has successfully tested support. Gold held above $1305, the low for the year set on March 5th and above the psychologically important level of $1300. The GDX, the gold miners stock ETF, held above the December 2017 low of $21.25. No new lows support the potential for an upturn. Gold closed up $33 […]

Gold Bull Market in Waiting

Where is the gold bull market that we predicted would begin about now? Here is our broad-based overview. The financial markets continue to expect an aggressive Fed going forward with four—even five—rate hikes this year and a continuing shrinkage of its balance sheet (Quantitative Tightening). Given this, gold has held up pretty well, essentially range trading, but the gold stocks […]

SAINT VALENTINES DAY AND ITS ECONOMIC EFFECT!

Valentine’s Day celebrated around the world is a time to express love and appreciation to friends, family and significant others. Narrowing down its history, seems to be more difficult and varies from culture to culture.

Following Christmas the January economic lows seem to turn around this holiday of love. Many fail to realize the vast impact this holiday has on retailers, […]

BUBBLE WATCHING

As we have noted here before, we believe that financial markets have generated the biggest bubble in history. There are many supporting facts for this view, from extreme measures of market sentiment to prolonged record low volatility, unprecedented low interest rates, record levels of leverage and historic over-valuation.

The bulls will try to tell you that earnings, economic growth and low […]