Calling a Bottom in Gold

Here’s my call. The gold bear market ended on December 2, 2015. We’re on the way back up now, after over four years of decline. Cross your fingers and daven. It’s gonna get rough out there for the dollar soon.

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Gold flag waving high today

Stocks down 1%. Bonds down 3%. Dollar down 2%. Gold up 1%.

A gold flag occurs when all assets are down except gold and other commodities. Once the fabric of the financial system starts to tear, we will start seeing this day after day after day.

Four Blood Moons Calling? Greek Elections again, S&P Minicrash, Gold bear over?

Well, if the whole blood moons thing is correct, which I still doubt but it is possible, then the picture has to start deteriorating fast. Like now, within the next two months. According to Blood Moon Theory or whatever you want to call it, we have until Hoshanah Rabba 5776 for the world to change somehow.

Today, the S&P broke medium term support at 2040, gold is up again, miners up 20% since bottoming late July, China crashing again, VIX up 25% in one day. I’m long gold and miners (obviously), no longer short China anymore, but long the VIX expiring in November since covering the China short.

Let’s clarify this “China devaluing” mumbo jumbo for a second. China has a “peg” to the dollar. That means the PBOC doesn’t allow the Renminbi, or Yuan or whatever they call it, to trade below a certain exchange rate with the dollar. They control it by buying or selling dollars whenever it gets too close. China is not “devaluing” its currency so much as simply letting it trade below a previous peg without the PBOC selling dollars to strengthen it to within an arbitrary peg. Why are they doing this? They think they need to in order to “stimulate exports” which is a bunch of crap, like saying you need to take hit of your crackpipe to think clearly. Yeah, maybe for 3 seconds, but then you go nuts.

Now Vietnam and Kasakhstan and a whole bunch of other countries few people care about economically are doing the same thing. The peg is manipulation. Releasing that peg is allowing the free market to trade the currency.

I’m in the US now, and this is the first time in years I’ve even put on main stream financial media around market close today just to see what they say. The bullshit is so thick you can’t cut it with a chainsaw. Nobody has any clue what they’re talking about, and they all say that in different words.

Greek elections are happening again. My hope is Yanis Varoufakis will get off his butt and run for Prime Minister in a new party. He’d win hands down, I think, and send the banksters to hell. He’s the only one that would do it. September 20th apparently is the date.

Gold is on its way up past $1,150 after bottoming (hopefully) at $1,072. If this is the bottom, it’s been a long time coming.

When the S&P broke support since February when it steamrolled through 2040, it was in the last 15 minutes of trading today. If stocks don’t bounce back sharply tomorrow morning early, then the next support levels are at 1972. If that gets broken, 1820 is next. Tomorrow is a very important day for stocks. If they don’t bounce early, they probably won’t bounce.

Let’s see what happens.

OH MY GOLD! BitGold a Service so Beautiful I Shed Tears of Joy!

WOW! I go to 321gold.com last week to check the spot price. And I see this article about something called BitGold. To open an account for free, just click on that link or the link in the menu bar above. Apparently, they are a gold-backed Paypal service where you can buy gold with bank transfer, credit card, bitcoin, debit card, whatever you want, and store your gold in one of 6 vaults around the world.

You can redeem your gold physically for a $25 shipping fee. That’s it. The minimum delivery is 10 grams. That’s about $400, which is the smallest redemption minimum I’ve ever heard of.

The only fees are a 1% commission on each transaction, so if you buy $500 worth of gold, they get $5 on the buy, and $5 on the sell.

This is essentially a 100% backed gold standard bank account. That’s what it is. If it catches on, it will be huge.

And it is not open to US residents. (UPDATE: NOW OPEN TO US RESIDENTS) I signed up for an account and uploaded my Israeli driver’s license. Then they asked for my cell phone, and sent me a code by text to make sure I was physically in Israel. I now have a BitGold account and can buy physical gold down to a 10 gram cube and have it sent as payment to anyone else with a BitGold account, or have it physically delivered to me here in Israel.

This is just awesome. I literally shed tears of joy when I saw this.

And their stock, XAU on the Toronto Exchange, is going totally bonkers. Up 45% just today.

I wish them all the luck in the world, and soon I will be one of their competitors!