Thoughts On Gold

From Jim Richards’ Strategic Intelligence:

“Russia and China are well-positioned to execute the greatest gold short squeeze in history. Of course, they have no interest in doing so right now because both are still buyers who favor low prices. At some point, they will flip to hoarders who favor high prices, but not yet.”

From Hugo Salinas Price:

“The present monetary system of the world, based on the dollar, is on its death-bed. A fiat currency – such as the dollar – cannot be replaced by another fiat currency, he explains. Therefore the world will necessarily have to take up [precious metals] as the world’s money.”


From Steven Warrenfeltz of

Gold and Silver Are Moving Back Up

GOLD (Warrenfeltz comments)


Last week, after the dust settled from gold’s price drop, a ‘falling expanding wedge’ formed in gold’s price chart (below).

All falling wedges are positive technical patterns, however for gold to confirm the pattern it will need to break above the upper resistance trend-line of the wedge.

In addition, gold’s MACD (lower indicator) is showing that its direction is about to change from negative to positive, so we should continue to see gold climb this week, but some profit taking is also expected as it moves up.


Gold Prices Since 1974 – Log Scale

(Gold is Moving Up!)




From Graham Summers on Yellen Testimony: “The US Dollar is TOAST

(Hint: Buy Gold!)



Axel Merk on Diversifying with Gold

Listen to the Podcast Audio: Click Here

Thanks to Money Metals Exchange

Quotes from the interview:

“When central banks print money, so called risk premia are compressed… meaning junk bonds don’t yield as much as treasury.

And when volatility is low, evaluations are higher. If you think about it, the way you historically value a stock is through discounting future profits, future cash flows. So, when that discounting is done at a lower rate, then the valuations are higher. Low volatility means high valuations.

So, relatively speaking, when volatility goes up, gold is more in favor. That’s one of the reasons why when there’s a so-called crisis in the world, gold tends to do well.

…it is not sustainable that volatility will continue to be that low. In my experience, and I’ve been doing this for a few decades now, the best bubble indicator there is, is low volatility which is an expression of the complacency.

The Fed isn’t so much concerned about the plunging stock market, the Fed is much more concerned about access to credit.

The beauty about precious metals, gold in particular, is that the longtime correlation to equities is near zero. And as such, it’s a diversifier.

The thing about these markets that are volatile, and gold has been volatile. It shakes out the weak players. So that means that if you don’t have a conviction of what you want and why you want it, you’re going to change your mind. You’re going to flip-flop and you’re almost certain to lose money.

And so, if you look now in the market where “everything is expensive,” the question is where do you want to be? I happen to think the traditional diversification models don’t work. A couple years ago I was quoted that you need to have at least 20% in alternatives. I happen to think now that 20% is way too low. And it doesn’t need to be all in gold, of course, but you want to have something that’s not correlated.”

Mike Gleason is a Director with Money Metals Exchange, a national precious metals dealer with over 50,000 customers. Gleason is a hard money advocate and a strong proponent of personal liberty, limited government and the Austrian School of Economics. A graduate of the University of Florida, Gleason has extensive experience in management, sales and logistics as well as precious metals investing. He also puts his longtime broadcasting background to good use, hosting a weekly precious metals podcast since 2011, a program listened to by tens of thousands each week.

Gary Christenson

The Deviant Investor

2 thoughts on “Thoughts On Gold

  1. My ONE glaring concern about the summation of:

    “So, relatively speaking, when volatility goes up, gold is more in favor. That’s one of the reasons why when there’s a so-called crisis in the world, gold tends to do well.”

    Is that since 2001?? We’ve been in a CONSTANT & ESCALATING turmoil of crisis & yet??? Silver, Platinum & Gold are clearly being manipulated & suppressed from real free-market controls.

    This has done nothing but beleaguer the regular guy with only a hefty of disingenuous unbelief & bereft of any interest I’m afraid.

    Lets say gold finally does break-out.

    Who’s left holding the bag of nothingburger??

    The little guys….because should PM’s finally break out of the maniacal controls of suppression??, the resulting waiting-in-the-wings “Laws” will simply be constructed & inculcated to ensure the protection of the corporatist greedy-grab.

    Who buys gold when the price is too high??.

    I’m reminded of when Gasoline/petrol hit over $4.00USD per Gallon….& the events of 2008. People even cut back on the amount of tooth-paste they used.

    What makes Gold (As a commodity) any different.

    Sure, Gold might well sky-rocket….but if it does in any break-out pig-fattening manner?? The Gov’t will rightly assay it & level punitive fines for “hoarders”.

    Gov’t doesn’t change, don’t think it could never happen AGAIN….it will, because the same type of people are assuming authority each & every time..

  2. Nice post, Gary.

    The Dollar’s ‘day’ will come, but surely after the EURO, which starts next year….we get a 160 dollar as the euro crumbles……2021 starts the dollar’s turn for scrutiny.

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