“Gold Is Now WAY Oversold”

Posted by Mark Mead Baillie - The Gold Update

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Where’ve we heard that judgment before? Yours truly has so written of Gold’s being oversold, as have others of our analytical ilk, it seems too often these past two years. For just when we sense ’tis as low as it can go — especially when valued against global currency debasement — Gold gets frog-marched to the back of the plane and thrown out the door. And given Gold’s losing 58 points this past week, to repeatedly so do would put the price at zero (“0”) for the week ending 26 March 2015. One has to think the Shorts are planning quite the celebration for that event in just 21 weeks’ time.

But seriously folks, if Gold, as we oft put forth, “plays no currency favourites”, should it not have soared yesterday (Friday) upon the Bank of Japan’s announcing a 60% increase in its annual Bond purchase ceiling, a tripling of their exchange-traded funds and real estate investment trust purchases, and a doubling of their equities purchases? That’s a lot of purchases, which to be enabled necessitates a yen by the BOJ to create oodles of ¥en, well beyond the number of noodles in your ramen. Place scapegoat blame on falling deflationary Oil prices, but when your central bank fails to meet its bond-buying goal and your government raises its consumption tax, history shows us that this ought end badly for one’s economy….continue reading HERE