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 […]
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.
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 […]
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, […]
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 […]
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 […]
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 […]
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, […]
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 […]
Gold on the Move
Since bottoming on December 11, 2017 at $1242, gold has tacked on nearly $100 to its price. What’s going on?
Clearly, one reason for the move in gold is the weakness in the U.S. dollar. The black line tracks the U.S. dollar index over the past two months while the gold line tracks the gold price. The dollar […]
Gold is up nine of the last 12 Januaries with an average gain of over 4% and the trend has continued in 2018 with gold reaching an intraday high of $1327 so far this year. From December 19 of last year, gold rose 10 trading days in a row. Is this another rally destined to disappoint investors or the resumption […]