Is gold stuck between a rock and a hard place?

The gold market has been pushing out its normal level of frustration and anxiety for the past several weeks.

So the question becomes, is the gold market pausing to move higher, and of course the Bulls would argue this, or is it forming the head and shoulders top that many technicians are looking for? Of course, this would be a bearish sign for gold if this technical formation is completed.

I've just finished a short video that shows you what we're looking at right now in gold and how I think it is going to be resolved. The video is a little over 2 minutes. It's quick and to the point while supplying you with what you need to take your place in or out of this market.

You may also wish to attend our gold webinar which we are holding on the 2nd of December at 4 PM EST. The webinar is free of charge, but you need to register in order to attend. This is no hype, but we have limited space and it will be on a first-come first served basis. The important thing is that you register as soon as possible. Here is the link you need

While you do need to register to attend our gold webinar, in order to watch today's short video no registration is required nor is there any charge. We would like to hear back from you regarding your thoughts on the gold market and where you see it heading in the near-term or longer term by the summer of 2011.

We hope to see you at this week's Gold webinar so don't forget to register.

All the best and enjoy today's video.

Adam Hewison
President of
Co-founder of MarketClub

14 thoughts on “Is gold stuck between a rock and a hard place?

  1. Eight fascinating facts about gold from the World Gold Council and Wikipedia articles and a few comments about why gold could be a good insurance policy.

    1) 52% of the world's mined gold is in the form of jewelry (probably mostly owned by women).

    2) 18% of the world's mined gold is in bars and coins in the vaults of the central banks.

    3) 16% of the world's mined gold is in bars and coins in the vaults of private investment holding companies (e.g. ETFs like GLD, storage trust funds, etc.)

    4) 12% of the world's mined gold is the custody of industrial users.

    5) 2% of the world's mined gold is unaccounted for.

    6) India is the world's largest single consumer of gold (about 25% of all newly mined gold) and most of this goes into jewelry. And India's economy has been growing at least 8.5% this year with good chances to continue next year.

    7) Pure gold is highly desired for its rarity and beauty as the most malleable and ductile of all metals and it does not tarnish. And it can't be printed into existence by governments.

    8) Gold usage includes jewelry, electronics, dentistry, medicine and coinage as well as many other uses in smaller quantities.

    Why are the world's central banks holding 18% of all the gold if gold is a useless barbaric non-monetary metal just wasting space in those vaults? They could sell off that pesky gold and free up that space for more fiat money.
    Perhaps they are holding gold in case the fiat money systems all collapse?
    Perhaps they recognize that the women of the world who own the largest amount of gold in the form of jewelry are really amazingly smart and are one step ahead of inflation? (In 1946, Hungary experienced the worst inflation ever recorded when prices got so they doubled every 15 hours. More recently Mexico has had an average annual inflation rate of 29.47% from 1974 to 2010. Folks, that means those 1974 Pesos are worthless! Its inflation rate reached an annualized high of 179% in February 1982. Currently their inflation rate is a mild 4% in October). Too bad there wasn't an inverse Mexican Peso ETF back in the 1980s.

    And finally, the U.S. Federal Reserve Notes are backed by the trillions of dollars of debt of the U.S. government and the full faith of the public that there will always be "bigger fools" who will accept those Ponzi Coupons for goods and services because it would not be PC (Politically Correct) to stop doing so. By one estimate the total U. S. public and private debt is $500,000 each for every man woman and child in this country. That implies that either most of us had better already be millionaires or most of us are probably broke. Last but not least, the mighty Federal Reserve, with the blessings of the U. S. Congress and President allowed the "fractional reserve" banking system to become the "no reserve" banking system, thereby potentially allowing infinite expansion of the money supply by the growth of bank credit.

    Happy Holidays Everybody. And don't forget your insurance policy: GOLD.

  2. I have to agree with SLW being the big play of the next few years. I'm up over $7,000 on 500 shares from August 2010. Also, Adam, I think we established in previous videos that after a move up like we've had this time around for gold and silver that there is a consolidation period that lasts 18-22 months before another major NONSTOP leg higher like we've seen this year. I say, keep accumulating during the consolidation and hold on until the long term monthly indicator says otherwise, but I'm looking at a replay of gold like in the 1970's with the regular stock market being in a trading range for several more years. We first hit 10,000 on the Dow in 1999 and it really hasn't done much since except fluctuate from that time on, and my "hypothesis" until my "theory" is proven otherwise is we may not see much action until 2018 for the Dow, Nasdaq and S&P. If you can do short term swing trades in gold, silver and the S&P, and do it well then go for it, but I trade options a lot and have found with this choppy of a market, the buy and hold of SLW has been a pretty decent alternative, and if I don't have to watch my computer all day, that's a big plus. I'm happy with my close to 70% gain in SLW. So my advice is long term buy and hold on gold, silver, and especially SLW which is beating both the regular metals percentage wise, and if you are good at it, look for short term swing trades in the S&P, but don't expect much, maybe a 2%-5% profit on your trades. "Long term" money trading indexes (buy and hold) is just a losing proposition right now.

  3. Wish the time was more appropriate for us in Asia. Will a recording of the webinar be available. Thanks.

    1. Sham,

      Thank you for your feedback,

      Yes, we will have a recording of the webinar available to all registered users.

      All the best,

  4. What about silver? I've made my money in SLW which has performed better than most any other silver and gold stock and etf.

  5. Adam, I think you need to give Silver some much deserved coverage too.
    After all it all about the poor man and the rich man!

  6. If you only see a head and shoulders bear pattern developing (a possibility) you may be missing another strong indicator -- the "Three River Morning Star" pattern which has been spot on 5 times without a miss in indicating the continuation of the current gold bull since it began in March and is showing again.

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