Central banks are becoming increasingly confused and even desperate, a 2016 theme that Gold seized on again today. All the hawkish rhetoric from Fed officials last month, which drove Gold stocks down (temporarily) much more than the metal, seemed even more foolish today when Ma Yellen sheepishly admitted that there was not a strong enough case to hike rates this month (keep in mind, The Fed Who Cried Wolf has only raised rates once in more than a decade, so what are the chances of even a December increase?).
“Our decision does not reflect a lack of confidence in the economy,” she said during her quarterly news conference after the FOMC meeting. “Conditions in the labor market have strengthened and we expect that to continue, and while inflation remains low we expect it to rise to our 2% objective over time.”
If that’s the case, Ma Yellen, what harm could another small rate hike do right now?
The decision of investors to pour into Gold this year does reflect a lack of confidence in the Fed, not to mention governments across the globe that seem inept at handling fiscal policy (confusing central bankers even more).
Meanwhile, just hours before the Fed decision to “delay” yet again, the Bank of Japan cooked up a new kind of sushi monetary policy. They abruptly shifted to targeting interest rates on government bonds to achieve their elusive inflation goals, after years of massive money printing failed to jolt the economy out of decades-long stagnation (the massive money printing continues, however).
The end result today was Gold jumping $20 an ounce to $1,335. Silver also had a stellar day, surging 61 cents to finish at $19.81.
In our Monday article, “Silver Update, And The Fed“, we covered the very encouraging outlook for Silver and concluded, “Silver’s downside at the moment is truly limited, and that’s why investors should be accumulating good quality Silver stocks that have backed off from recent highs.”
Tonight, a fascinating look at Gold after today’s move from the individual with a growing reputation for the most accurate and timely Gold charts in the business!
Click here to quickly become a BMR member and read the rest of tonight’s special report on Gold, or login with your username and password…
well it seems CXO is a bust! along with Aben… fack!!
Comment by Jeremy — September 22, 2016 @ 6:27 am
That Heart of gold camp didn’t quite light up like a Christmas tree after all…when will I ever learn..
Comment by GREGH — September 22, 2016 @ 7:03 am
I sold my CXO at 65 cents, looking to buy back in December if the price is right. Its still a great property a great team.
Comment by Mmurphy — September 22, 2016 @ 7:04 am
I learned this time around. Sold at 70 cents for a whopping profit. Never fall in love with a stock. That’s what I have learned regarding juniors the past 10 years, unless they hit the grand daddy of a deposit.
Comment by Dan1 — September 22, 2016 @ 7:08 am
Jon – do you guys still own CXO and ABN???
Comment by Jeremy — September 22, 2016 @ 8:26 am
Yes I do, Jeremy, ABN is looking good and with CXO I decided after my summer visit to take a long-term approach as there’s no way IMHO that they’re not going to emerge as a force in this district which is only going to get more active with more discoveries. I’m also anticipating (not 100% certain but anticipating) that they’ll secure a property to work on over the winter…investors seeing a “lack of news and activity” over the coming months are likely the ones unloading today, but they very well could be wrong on that assumption…
Comment by Jon - BMR — September 22, 2016 @ 8:34 am
You’re right, Dan1, you should never fall in love with a stock and you should always have an exit strategy…
Comment by Jon - BMR — September 22, 2016 @ 8:37 am
thx Jon… the real problem as I see it is defining THAT exit strategy … thats why my portfolio got trounced in 2011..
I have over 120 individual stocks… i know its crazy but… and its not about falling in love with the stock it is about waiting for the story to unfold.. I am leaning towards a 30-50% profit… then sell 2/3rds.
Dont use stop loss, but with CXO the above would have worked.. but my real issue in 2011 is not thinking that things were dead..
CXO is dead right now… and BTW I am not a trader.. I am an investor.. I believe now that you cannot BE an investor in certain stocks.. make a few bucks and bail might just be the best thing to do.. and then on to the nxt…
just thinking out loud..
Comment by Jeremy — September 22, 2016 @ 9:08 am
Yes Jeremy, I have not sold a share. I do not think we will stay in the 20/30s very long. I watched the trading earlier today and some big buys were being made….and I don’t think it was retail either. When this stock starts to move up it moves fast….look at the chart. We will see.
Comment by John - BMR — September 22, 2016 @ 9:26 am
I am going to sit back and wait for the dust to settle as I feel that there will be some very good entry points for most of the heart of gold camp companies over the next several months as we head into tax loss selling season. At least that is my plan for now. Anyone care to comment on my plan?
Comment by pole — September 22, 2016 @ 9:51 am
@Pole – that is my plan as well – wait in hiding and pounce.
Jon – CXO acquired a property around Merritt this spring – the HIT property I believe – they could work that one in the winter. No news on Hearts Peak yet?
Comment by Mmurphy — September 22, 2016 @ 10:00 am
pole, I think it’s a sound plan. With a lack of news on the horizon these stocks will drift down plus the added headwind of tax loss selling will drive them down further. I expect there will be some great bargains for those that are patient.
Comment by Danny — September 22, 2016 @ 10:09 am
pole, I think it’s a sound plan. With a lack of news on the horizon these stocks will drift down plus the added headwind of tax loss selling will drive them down further. I expect there will be some great bargains for those that are patient.
Comment by Danny — September 22, 2016 @ 10:10 am
Thanks for the feedback Mmurphy and Danny.Makes me feel better knowing other investors are thinking the same way.Not ready to give up on GGI yet. Still feel something good is going to happen with one of their properties shortly.
Comment by pole — September 22, 2016 @ 10:59 am