Sunday, October 23, 2016

If You Are Worried About The Action 
In Gold & Silver, Just Read This
Ronald-Peter Stoeferle quotes Leo Tolstoy - "The two most powerful warriors are patience and time" in analyzing the action in gold & silver .. Compare the recent correction with the mid-cycle correction between 1974 & 1976 .. The similarities between the two periods are in particular pronounced disinflation, rising real interest rates and extremely high pessimism with respect to the future trend of the gold price. If one compares the price trends of the two time periods, it can be seen that the bear market since 2011 had roughly the same structure and depth as the 1974-1976 mid-cycle correction (they differ in terms of duration though). .. Numerous technical and sentiment indicators are suggesting that the gold price has gone through a traditional cycle which culminated in a selling panic and a peak in pessimism last year. (And despite the recent pullback), it appears as though a new bull market cycle has now begun."
LINK HERE to the analysis

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