The Guise of Deflation
CIGA Eric

The Fed is "worried" about deflation that doesn’t seem to manifest its anywhere. This worry is comparable to a gambler “worried” about winning too much money. It’s a ruse.

Spot Commodity Prices: CRB Spot Index (1947 – Present);
16-Raw Industrial Spot Price (1935-1947);
Great Britain Wholesale Price of All Commodities (1885-1935):

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Dear Eric,

My goodness do I hear all of this by the boat load.

I can tell you that when gold establishes a top for a serious reaction the opposite is all you hear.

Regards,
Jim

When Time Is Right Price Will Follow
CIGA Eric

Common arguments against gold –

1. Gold looks technically weak.
2. July-August is a seasonally weak period.
3. The media says China no longer wants gold, etc, etc.

My unbiased, market-driven response to the above arguments is as follows:

"When Time Is Right Price Will Follow."

Risk Free Total Returns 1926-2010 & Second Year of the 4-Year Cycle Risk Free Total Returns 1926-2010:

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Positive Divergence in Trend Energy in Junior Gold Miners Index
CIGA Eric

A positive divergence in trend energy in the Junior Gold Miners Index suggests quiet accumulation prior to the paper takedown. Quiet accumulation often precedes explosive jumps – better known as bandwagon rallies. Though, in the case of gold and gold stocks, I seriously doubt it will get much coverage.

Junior Gold Miners Index ETF (GDXJ):

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