Rick Rule, Chairman of Sprott Global Resource Investments Ltd., says some of the ‘big money’ that was circling the resource sector has finally found a home. Rick Rule recently commented on a couple of new investment mandates that he believes signal a positive development in the resource sector.
The first mandate is a deal for Sprott Asset Management to co-manage upwards of $110 million in funds along with Zijin Mining Group Company Limited, the largest publicly traded non-ferrous metals mining company in China. $100 million of those funds come from Zijin while $10 million is to come from Sprott Inc., Sprott Asset Management’s parent company.
The Monthly Bearish Reversal lies at 1152 and the drop previously was to 1151.40. A monthly closing beneath this 1152 area will open the door to a further decline. The technical support lines up also with the 1980 high area of $875. The first quarter here in 2014 looks choppy, but thereafter, get ready for the increase in volatility.
Even the oscillators show
Curious why despite the huge miss in payrolls the unemployment rate tumbled from 7.0% to 6.7%? The reason is because in December the civilian labor force did what it usually does in the New Normal: it dropped from 155.3 million to 154.9 million, which means the labor participation rate just dropped to a fresh 35 year low, hitting levels not seen since 1978, at 62.8% down from 63.0%.
On the heels of some wild trading action this week, today London metals trader Andrew Maguire shocked King World News when he told KWN that in a private closed-door meeting with producers, ScotiaMocatta’s Simon Weeks, who is Chairman of the LBMA, tried to frighten producers into forward selling by telling them gold was going to plunge ‘another $400 in 2014.
It has been a very hard year for the gold and silver bulls as this tiny sector has been sold off to an alarming extent by investors who are currently disillusioned by the demise of both gold and silver and the knock-on effect that they have had on the precious metals producers. Gold and silver have had a long run of ‘year on year’ gains and so the expectation was that 2013 should be more of the same. Alas, a correction arrived driving the precious metals down and decimating the price of a number of mining companies as the chart below clearly indicates.
The US Dollar
The US Dollar was expected to behave like the proverbial ‘Dead Cat’ in that it would fall from grace
Posted by Martin Armstrong
As we enter 2014, we may see Greece simply enter a default on its debt. This whole Euro nonsense is collapsing and we will have the May Elections in 2014 for the EU. Of course, even if the people voted for reform, the EU Commission has entered rules that even if the ELECTED politicians vote against the Commission, the Commission need not comply with any vote. Only the Commission can introduce legislation.Never anyone elected. Newly elected politicians can refuse a proposal from the Commission, but the Commission can still do as it likes and no vote can alter their agenda. This whole thing is one giant dictatorship clothed in a pretend Democracy
Gold Silver Worlds | December 11, 2013 |
Readers turning to alternative news sites often try to explain their concerns with others (friends, family, colleagues, business partners). Empirically we know that most people understand that “something is wrong” but they fail to understand the real underlying threats of our economic system. The real risk is inherently related to our monetary system, a topic that is not understood by the majority of people. There are even no classes at university researching the monetary system and monetary history.
Even economists seem to have a hard time understanding and agreeing on how monetary issues and policy impact the economy and markets
Kitco News continues its Outlook coverage with the one and only Santa Pete, who gives his 2014 forecasts for gold and silver. He says the market was oversold last week in anticipation of tapering, which explains the bounce on Tuesday