En mer noggrann analys av graferna av Andrew Hoffman finns att läsa här: Charts Even We Can Appreciate
To that end, a remarkable article was posted to King World News this weekend – which even we were floored by. Titled “The Most Remarkable News in the Gold and Silver Markets,” it posted several jaw dropping, multi-decade charts. To start, we present Exhibit A; i.e., the gold price since 1978, overlaid with the coinciding MACD (Moving Average Convergence-Divergence) ratio. Essentially, MACD measures how “overbought” or “oversold” a market has become; and in gold’s case, it is incredible to see that MACD has fallen below not only the 2008 lows, but the 1980 lows as well – by a wide margin. Ladies and Gentleman, this is solely the result of the Cartel “overplaying its hand”; which we assure you, will have long-term, catastrophic ramifications. And by the way, the fact that gold prices are still above $1,200/oz. should tell you all you need to know about the power of this generational bull market.
Next up, here is the same chart – for silver. In 1980, its plunge was more dramatic than that of gold; in that case, due to overt government intervention. To wit, when the Hunt Brothers were accused of cornering the market (which pales in comparison to what JP Morgan is doing on the short side of the market today), the government banned silver purchases, causing the price to plunge from $50/oz. to $4/oz. in just two years’ time. Yet, today’s MACD reading – after the government suppressed silver from $50/oz. to just $19/oz. over the past two and a half years – is weaker than it was then!
As for the mining shares, they too have been beaten down to unimaginable levels. Frankly, the XAU’s MACD reading is so incomprehensibly low, it’s difficult to imagine a mining industry still exists. Sadly, this is in the process of coming to fruition and frankly, there is no way of knowing if miners will rebound as smartly as gold and silver prices – let alone, if fearful governments start expropriating, nationalizing, and/or instituting windfall profit taxes in a rising price environment. In other words, one would be advised to be very careful when considering the ramifications of this chart.
And last but not least, if there’s anyone remaining that believes stocks are rising due to anything other than money printing and market manipulation, we present the MACD reading of the S&P 500. Yes, my friends, it is now as “overbought” as at the peak in early 2000; not to mention, dwarfing the overbought readings of mid-2008. I’m guessing 90% of our readers were around at the onset of the “tech wreck” – when the stock market frenzy was global, widespread and all encompassing. And thus, well aware of the mentality that prevailed. And oh yeah, the fact that the U.S. economy was at an historically high level; along with the dollar, America’s standing in the world, and a “Pax Americana” zeitgeist featuring, for the most part, world peace.