Marc Faber sees no value in U.S. stocks, is long emerging markets (especially Vietnam). He is bullish on gold/silver and oil stocks. He likes platinum and palladium.
I have become very bullish lately on silver and was already bullish on gold. But the following chart makes me ultimately bullish. We see the biggest increase in gold lease rates as of yesterday and we have seen this before. In 2008, the gold lease rates started to spike upwards, which meant gold was in short supply. It also meant that the "interest" to hold gold was going up, just like the "interest" on your cash is going up. This ultimately means that the world is valuing gold at a higher interest rate and the central banks are demanding their gold back from the bullion banks. We are in for a huge upside move if you ask me.
Just a few days ago, I reported that J.P. Morgan vault had a significant amount of eligible gold taken away. I didn't know what it meant. Today, another 175000 eligible gold was taken away, this time by HSBC and J.P. Morgan, who are seen to be the main manipulators in the precious metals market. This is all nice to report, but I still don't know what it physically means. But let's try to understand the CFTC market and COT data. First off, when open interest increases in gold (Chart 2), it means that inventory needs to be replenished . Analogy: if you get increasing orders (higher open interest), you should have a higher stock level to meet demand. So if open interest increases on Chart 2, registered bullion stock levels should go up too on Chart 1. We can see that Chart 1 and Chart 2 correlate very well. Also, Chart 3 and Chart 4 correlate very well too. Gold: Chart 1: Gold COMEX Stock Chart 2: Open Interest Gold Silver: Chart 3: Silver COMEX Stock Chart 4: Open Intere...
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