GoldMinerPulse: Market Sentiment Track Record

Chart for 28 March 2013 market close plus outlook for week ending 5 April 2013.


GoldMinerPulse Market Sentiment (MS) Metric Track Record

28 March 2013 View After Market Close: MS Up Turn From Multi-year Lows Continues To Build

Outlook for Week Ending 5 April 2013

The 28 March 2013 up tick in MS, with higher lows and higher highs since the 15 March 2013 multi-year low in MS, suggests a MS bottom is forming halting the downtrend dating back from 5 October 2012. The formation of a new uptrend is however unlikely, since the price of gold (POG) is moving opposite to the MS uptrend over the last week.

The strong physical gold delivery on the SGE suggests that POG is unlikely to drop significantly -- SGE has delivered more gold for 2013 year to date than the world's gold miners have produced year to date -- since physical delivery can not be met by the paper gold trading on other commodity exchanges around the world. At some point, the demand for physical, can be reasonably expected to trigger a sustained up move in the POG. As reported for the last few weeks, I continue to believe now is an excellent time to add to physical gold holdings and for additional leverage to add to gold and silver producer equitites (this is opinion and not investment advise). When the MS trend does turn up, I believe current gold and silver equity prices will be viewed as recognized as great bargains.

The key metric to watch for next week is the price premium and daily delivery quantities for gold on the SGE -- see Shanghai Gold Exchange (SGE) Physical Gold Delivery for daily updates.

GoldMinerPulse Calls From Past Friday Market Closings

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