Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

[mcokpba]

Some random thoughts this evening.

IMHO, We are not in a fair (level playing field) precious metals market. There is no true price discovery. Traditional chart analysis is only marginally useful in a central bank manipulated market. Picking arbitrary time periods for traditional bear and bull definitions is a mind game in my opinion. I will be amused (not really) when the debate turns to a discussion of whether we are in a "paper gold" bull or bear market.

How does active price suppression fit into a bear or bull market analysis? The availability of gold for delivery now seems to be more of a controlling factor. The spot price of gold and other metals seem to have been forced down toward the cost of production.

We are in a new paradigm now. There has never been so much global debt before with the world reserve currency back only by the full faith and credit of the United States. Anyone holding U.S. Treasuries in reserves is wondering if those T-bills are an asset or a liability. I would rather watch what the Federal Reserve does in the coming months. I would rather watch what the bond market does in the coming months. I would rather watch what the 10-year interest rate does.

Previous Bull and Bear markets as predictors of future movements in the spot price of gold may not be applicable when the U.S. dollar, the global stock markets, and the U.S. bond market are all either falling or imploding at the same time.

If you believe that gold is a barbaric relic and in an ongoing bear market. More power to you. I am not trying to convince of any other belief.

I believe that lot of labor and energy went into producing each oz of gold and silver. To me, each coin or bar represents a store of value. I do not base my current investment strategy on charts of a manipulated commodity. My macro view of the global economy and the central bank policies being followed are leading all of us to financial pain for the unprepared and a historic transfer of wealth.