This is an important chart for longer term investors, people who want to buy at the bottom of a major move. my 2c, and charts can be very dicey to put it mildly, but on the other hand, it really is true that markets are driven so very often by psychology. ergo, buy ridiculous value when people are asleep at the wheel and hate the sector. ...
Remember there are all types in the market, and quite a few, like traders and short termers, who would rather jump into a momentum move higher. These types are called trend followers, nothing wrong with them.
The value investors, studies show without any question, are people who simply buy value, and do not even look at a chart, so maybe I am breaking my own rule,....as I try to be a value investor. anyway, this chart show the sector to be totally complacent, where every single market player is skeptical of gold's rise.......the perfect situation that does not come along very often at all.....like every three or four or five years....so the wait can be very long.....and this bodes well for a huge move up in the gold market.
IN the face of fundamentals described by GG deo, this chart says current Sentiment is that EVERYBODY DESPISES THE METAL AND HAS BEEN HATING IT FOR A VERY LONG TIME........and as Ian Telfer, the ceo of GG just opinioned, the majors are topped out in terms of supply, looking at a real problem very soon to meet demand. He says supply from the planet's gold mine is facing a real problem. He also said that it takes AT LEAST, his precise phrase, to produce a real gold mine, from discovery to actual production. "At Least."............
the world is asleep to this, and the funds cannot see the money and indeed, they think the miners are just more smoke and mirrors, more hype. They believe, imho, that the last decade was just another example of the miners promising profits for shareholders, but delivering nothing. This is indeed the current wisdom and has been for five years now. I think the reflection on the first decade is accurate, withotu a doubht, but we are another seven years hence, and the industry is being thrown out with the bathwater. A perfect buy opportunity.
....I see a perfect storm, with all the financial people speaking of crypto currencies...ian telfer is not one given to overstatement. He is not some kitco stock hyper type, exactly the opposite actually......so we are looking here from now out to perhaps even a year for a major move to get started. A year at most, and the current moment at the least. I can wait. I am patient for a several hundred percent return, give or take. But at least the preconditions or launch pad makes sense.
