Monthly Archives: March 2016

The Most Interesting Man and the Gold Market

The Most Interesting Man and The Gold Market

“It’s never too early to start beefing up your obituary.” Most Interesting Man

March 8: Gold $1262.10 down $1.10. Silver: $15.38 down 24 cents

         The thing about most early bull markets is…they’re usually quiet. You wait…and wait for some sign that there really is a bull market going on. You wait for some expert somewhere to finally intone that yes, Virginia, there is a new Tech or Micro Bio Bull Market afoot, and you should be buying those stocks…NOW.

That’s not happening now. Take the current gold market for example. Since January 2nd, 2016, the price of gold has moved from $1060 an ounce to…$1260, plus or minus. That’s $200 bucks in two months! So, while the stock and bond markets have gone South, gold is up 18%. [Annualized, multiply by 6, an impressive run.] So where’s the noise?Most interesting

Not from the brokerage industry. We’ve got Goldman Sachs, AKA the vampire squid, telling you that gold is going back to $1000. Robert Prechter in Florida insists gold will go to $300. And most of the brokerage boys, if they talk about gold at all, now say its overvalued. Does this sound like a bull market?

Well, the gold world may be confusing, but at least it’s “interesting” again. Hey, why not ask THE most interesting man in the world about the gold market. You remember that bearded guy sitting in a lounge somewhere having a Dos Equis with a couple of babes. That guy knows interesting. Here’s list of some phrases used to describe Mr. Most Interesting:

“Alien abductors have asked him to probe them.

The Aztec Calendar has his Cinco De Mayo party chiseled in.

Bigfoot tries to capture photos of him.

He bowls overhand.

Cuba imports cigars from him.

Last time he flirted with danger, danger got clingy.

He once lapped an opponent…in a drag race.

He once taught a German Shepherd to bark Russian.

Once he brought a knife to a gunfight, just to even the odds.

He won a lifetime achievement award… twice.

If he mailed a letter without postage, it would still get there.

Mosquitoes refuse to bite him, out of respect.

gold $gdm

His mother has a tattoo that says, “Son.”

At museums, he’s allowed to touch the art.

If he mispronounced your name, you’d be tempted to change it.

If he were to pat you on the back, you’d list it on your resume.

His reputation is expanding faster than the universe.

When in Rome, they do as he does.

He is the only person ever to ace a Rorschach test.

Sharks have a week dedicated to him.

He once parallel parked a train.

         Now these are descriptions of someone or something interesting. Could any of those descriptions be applied to gold today? Umm, probably not. Does gold get anyone’s attention on the 6 o’clock news? On the radio? Nope. Well, maybe gold isn’t having a bull market? Yet, by definition, it’s a bull if the price is going up.

Does Mr. Most Interesting have an interesting opinion about gold? I dunno. At the very least, Mr. Most Interesting can see that gold HAS been going up. Will that trend continue? It depends.

I’d say it depends on the big institutions of the world moving some of their $200 Trillion in investable assets from their current .05% allocation to gold to something approaching an actual integer of 1%. Retail guys won’t kick gold up to the stratosphere, like the run from 2001 to 2011.
If you look at the state of the world economy and trade, the over-printing of the lousy dollar and other paper currencies, and the actual supply/demand gold band

characteristics of gold and silver, big money managers ought to think about buying some precious metals. I’m not talking about roaring into this market, because it will still have its share of shock and awe days from bad guy manipulations, but inching onto a quiet but relentless gold bandwagon that’s going up makes some sense. Historically, gold and silver are certainly cheap these days.

And even if gold metal prices have gotten interesting, the gold shares haven’t. And silver and silver shares haven’t moved much at all. If you decide to ramble after the bandwagon, look at GGN and SIL, funds for beginners.

         If you want to take a shot at a royalty company, there’s sandstorm…SAND at $3.02. [A few years ago, SAND was over $12 a share.] SAND is on Gold Stock Analyst’s Top Ten list. SAND just bought 50 new income streams from Teck (TCK) at a cheap price.

And for you non-believer hedgers, see Michael Ballinger’s latest:

silver CB sales

          All in all, if this early gold bull were interesting, more people would be talking about it. They’re not. Maybe that’s a good thing. The same lack of conversations happened back in 2001…and gold went from $259 to $1900 over the next decade. And silver, which used to be at $49, is now at $15? And our government can’t find enough to make coins? Maybe mums the word. Don’t tell anybody, just buy some.

Naaa, why would anybody want to invest in that kind of thing. Let’s go look for something techy and more interesting.