To 321gold home page
Home   Links   Editorials

Shanghai Gold Exchange Gets Shark Teeth

Stewart Thomson
email: stewart@gracelandupdates.com
email: stewart@gracelandjuniors.com
email: stewart@gutrader.com

May 27, 2014

  1. Today is expiry day for gold options. Please click here now . I’ve suggested that gold is unlikely to begin a trending move until options on the June COMEX contract expire.

  2. On that note, please click here now . That’s the weekly chart for gold. I’ve highlighted the price action that occurred after the Stochastics oscillator (14,3,3 series) flashed a buy signal.

  3. While gold is off to a bit of a disappointing start this morning, I think investors in the Western gold community should watch this oscillator closely now. It’s moved into a position where significant rallies have occurred.

  4. From a technical standpoint, senior gold stocks look similar to gold. Please click here now . This weekly GDX chart suggests senior gold stocks are likely poised to begin a significant rally.

  5. Please click here now . That’s another look at the same GDX chart. I’ve highlighted all the key intermediate trend highs.

  6. Since 2011, only once has GDX managed to rally above any of those highs. The election of the new pro-growth government in India is good news. It's one of two fundamental catalysts that could be behind the bullish technical set-up on the charts.

  7. Another catalyst is the news that the Chinese central bank has granted approval to the Shanghai Gold Exchange (SGE) to launch a global gold trading platform.

  8. Please click here now . In this news release from Scrap Monster, note the words that I’ve highlighted in gold.

  9. Some members of the gold community may be nervous about the ramifications of inviting major Western bullion banks into the Chinese gold market, and rightly so.

  10. While the issue of manipulation on the COMEX and LMBA markets can be endlessly debated, there’s no question that gold in the West gets a lot of bad press.

  11. Jiang Shu’s words that China’s strong gold demand is currently “only a number, not a power” make it clear that the new platform will be designed to put upwards pressure on the gold price.

  12. Gold is entering a new era, centred on gold jewellery demand in China and India.

  13. On the Shanghai platform, the banks will be expected to act with a level of professionalism that perhaps has not existed in their COMEX and LBMA operations. I expect them to consistently endorse gold as an asset of the highest quality. These banks will essentially provide the SGE with a set of gold price discovery “shark teeth”!

  14. Please click here now . That’s the weekly silver chart. From a technical perspective, the Stochastics oscillator looks superb.

  15. Like gold, silver appears to be in the process of gearing up for an intermediate trend rally.

  16. Please click here now . That’s the daily chart of SIL-NYSE (silver stocks ETF).

  17. A bullish wedge pattern has become more apparent over the past few trading sessions, and the Stokeillator (14,7,7 Stochastics series) suggests a rally is imminent.

  18. Junior gold stocks are the first love of most investors in the Western gold community. Please click here now . That’s the GDXJ weekly chart.

  19. I labelled the October 2010 period the “loss of sanity” zone, because of the widespread view that the Western world’s financial super-crisis was destined to catapult junior gold stocks into the stratosphere.

  20. Note the red horizontal bars on that GDXJ chart. Those mark intermediate trend highs.

  21. It’s clear that junior gold stocks have not staged a single intermediate trend rally that has exceeded even one of those highs.

  22. The bottom line is that for the past four years, the super-crisis and the “gold fear trade” have failed miserably, as a junior gold stock price driver.

  23. Ironically, the “love trade” (gold jewellery) may be the price driver that creates even higher gold stock prices, in a more stable manner, than anything envisioned by even the most bullish super-crisis analysts!

  24. Please click here now . I’ve highlighted the Stokeillator on this daily chart of GDXJ. When the bullish posture of key oscillators on both the weekly chart and the daily chart are considered alongside the bullish fundamental news about the Shanghai Gold Exchange, I think Western junior gold stock investors are poised for a very positive ending to the 2014 calendar year!

May 27, 2014
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
email to request the free reports: freereports@galacticupdates.com

Tuesday 26th Mar 2024
Special Offer for 321Gold readers
: Send an email to freereports@galacticupdates.com and I'll send you my free “GDX & GOAU: Golden Leaders Of The Pack!” report. I highlight eight of the less-followed component stocks of these important ETFs… stocks that are set to surge. Key investor tactics are included in the report!

Graceland Updates Subscription Service: Note we are privacy oriented. We accept cheques. And credit cards thru PayPal only on our website. For your protection we don't see your credit card information. Only PayPal does.

Subscribe via major credit cards at Graceland Updates - or make checks payable to: "Stewart Thomson" Mail to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 / Canada

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am. The newsletter is attractively priced and the format is a unique numbered point form; giving clarity to each point and saving valuable reading time.

Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

321gold Ltd