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Latin American central banks - of all places - have caught the gold bug, with Brazil, Paraguay,...

Latin American central banks - of all places - have caught the gold bug, with Brazil, Paraguay, Argentina, and Colombia joining Mexico in adding to their reserves of the metal. Brazil seems to the best candidate for significant future purchases, with its gold stash at just 0.8% of reserves, and the central bank looking into diversification.
Comments (5)
  • I had to follow two Brink´s Armored Trucks in Colombia... with 30 Police on motorcycles.....it was not coins they were protecting nor was it paper money it would not have been that heavy.....they were really slow going up a hill.....me thinks it was gold....lots of gold...
    10 Dec 2012, 09:01 AM Reply Like
  • Didn't Chavez recently request Venezuela's gold be returned to Venezuela?
    10 Dec 2012, 11:15 AM Reply Like
  • That was about a year ago.

     

    We are nowhere near the end of this bull market.
    10 Dec 2012, 01:30 PM Reply Like
  • Jim Rogers is now saying there is too much speculating in the sector - article link http://bit.ly/MWC1hH
    10 Dec 2012, 06:10 PM Reply Like
  • Tulip bulbs in the 1600s, silver in the late 1970s, tech stocks in the 1990s, real estate in the early 2000s, and now gold. What do they all have in common? They are all examples of euphoric bull markets or bull market bubbles. And each one of these bubbles eventually popped and punished a lot of ignorant investors in the process.

     

    The gold bubble will pop and when it does, investors will be in disbelief. Yes, gold can go down and it can go down hard. Central banks cannot manipulate the gold markets on their own with massive buying. This has been unsuccessfully attempted in the past with currency markets and eventually, natural supply/demand forces win out. Precious metals are one of the most volatile sectors in the capital markets.

     

    We may not be at the end of the gold bull market, but long-term technical indicators are flashing some early warning signals. Taken from my blog today (12/11/12), "GLD is flashing some [long-term] warning signals to bulls:

     

    1) In May 2012, GLD broke a long-term (6 years!) trendline on high weekly volume (not shown). Granted, this trendline broke before during the Lehman Bros. collapse in 2008, only to recover and double in price over the next four years. So just because a trendline breaks doesn’t mean that the trend is dead…yet

     

    2) Price will need to retest and fail to reclaim the trendline at least once, and possibly multiple times, in order to validate the broken trendline signal. This happened recently for the first time in September 2012 with GLD.

     

    3) Elliot Wave Principle (EWP) has potentially spelled out a completed 5 wave pattern as denoted in orange. IF this is the case, then GLD has experienced a major top that will likely hold for many years. I will concede that my proposed count does have overlap of wave IV on wave I. This by definition is a direct violation of EWP rules and the count must be false. However, since the overlap occurred during a liquidity crisis, was not sustained, and the recovery V-shaped, I think we can consider this count valid for now. Especially since wave V is clearly an extended wave and extended 5th waves have been known to show up in commodities, particularly the precious metals."
    11 Dec 2012, 01:21 PM Reply Like
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