Gold: Guaranteed Returns, Says PM Analyst (GLD, SLV, AGQ, IAU, PHYS)
Dominique de Kevelioc de Bailleul: The charts and numbers reveal to technician Bert Dohmen of Dohmen Capital that gold is a great buying opportunity sometime within a 30-day time period. That big move in the yellow metal could begin today, tomorrow or next week. But the bg move is coming, according to Dohmen.
“I look at the charts, and I look for the major buying opportunities, and say: Okay, if somebody doesn’t have any gold, when should they be buying?” Dohmen asked, rhetorically, during a FinancialSense Newhour broadcast of last weekend. Get my next ALERT 100% FREE
“Well, right now we’re in a timezone, and that doesn’t mean today or tomorrow or next week. But we are now in my opinion within a month of a great buying opportunity.”
Dohmen prefaced his interview regarding the technicals of the gold market by commenting upon public spending—a reliable and macro statistic for making a long-term forecast of the financial health of a nation and the response of gold traders through time.
“There are about 106 million Americans, 106 million, just imagine that, Americans, right now, getting some kind of aid from the government,” Dohmen opined. “Just imagine that.” GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
Just as empires of the past allow more citizens to take more from the public treasury than those paying into the public coffers, the economy eventually eats itself into a collapse—with no exception to the rule found in history.
He continued, “You have over half the people in the country do not have to pay taxes. So we’re at the point now where the people receiving from the government outnumber the people giving to the government.
“And, of course, that is the end of democracy. . . that’s the end.”
With sentiment very low, Dohmen sees a rare opportunity for those who haven’t secured any gold. He said he reviews the Commitment of Traders (COT) report issued by the Commodities Future Trading Commission (CFTC) issued each week to spot buying opportunities in the precious metals. When disinterest in the gold market among institutional and small investors reach low levels, a bottom has usually formed.
“So right now the open interest in the gold futures is at a very, very low point,” Dohmen explained. “It’s been coming down for many months, and right now we’re at a point where normally you have a start of the next strong up-move.
“All these indicators [activity with small speculators and institutional money managers] show that there is absolutely minimal interest,” he added. “And when the interest in buying gold has been this low, you usually have a bottom at the start of the next up-move.”
For those new to the gold market, don’t attempt to trade the metal. Overbought and oversold sentiment can become quite exaggerated and for a long period of time, fooling traders into buying too late or selling too early, in the case of non-professionals. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!
Today, the gold market has entered a post-corrective phase low; it’s time to buy gold, according to Dohmen.
“Within the time frame of the last year, this is the greatest buying opportunity that I have come across based on the charts and the numbers,” he said.
“I guarantee one thing: you buy gold right now, and ten years from now, it will be a heck of a lot more worth [sic] than the cash you have under your mattress.”
Related Tickers: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV), ProShares Ultra Silver ETF (NYSEARCA:AGQ), iShares Gold Trust (NYSEARCA:IAU), Sprott Physical Gold Trust (NYSEARCA:PHYS).
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