The headline below is grizzly because it is talking about PoG to $5000, it is grizzly because it is talking about renewed QE as the catalyst to launch the gold price and it is grizzly because it is Peter Schiff, he of the 100% incorrect stance in 2008; he of the 100% incorrect stance since 2011, he of the Euro Pacific gold and silver coin dealership. Click the graphic if you want to read the interview…
Also, Ukraine is in the headlines screwing up the market again this morning. Gold and silver came to valid bottom points yesterday before reversal and it is debatable how much Ukraine hype played into it. Yet Kitco comes with the pap again with the crap about safe haven buying. This stuff must be tuned out by right-minded players…
"New violence in Ukraine has helped to fuel the rally in gold. News reports Thursday said Ukrainian military forces have stopped one of their operations in the eastern part of the country due to fears of Russia sending in its army to eastern Ukraine. Several pro-Russia separatists were reported killed Wednesday as Ukraine's military tries to retake control of some eastern cities. Russian officials said they will conduct more military exercises near the Ukraine border. I expect to see this situation not de-escalate and may even escalate in the coming days. Such would continue to at least limit selling pressure in gold, if not see increased safe-haven purchases of the metal."
Wow, the selling pressure in gold can be limited by the Ukraine tensions? I'll tell you what, if this is on the mark and gold would be sold now if not for Ukraine, then this will simply rebuild selling pressure that would be stronger than it would have been had this hype not gotten into the mix. But again, to me it is debatable how much this is playing in because the metals did come to valid and important support levels yesterday.
Gold hit a support level (1270) that NFTRH has had plotted for weeks and silver hit a critical support juncture that we have followed by longer term charts. They will either hold these critical levels or they will not. If they do, silver especially could be epic over the coming 2 years. If they do not, it's gold bugs back to Palookaville.
What ever happens, the headline above and other cartoonish stuff are not material other than as contrary indicators. Media stars are media stars for a reason; that's their job. They make headlines. But that's all they are, headlines.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: No positions mentioned.