Generally speaking, we believe that we need a bear market or marginally a 15% to 20% move down in the industrial stocks to commence another bull market in gold mining stocks and gold exploration stocks.

Manipulation is ongoing in gold bullion to keep the price of gold down. Just review some of the sales that occurred. The trading on the Comex in New York in mid-July 2014 in our opinion was quite suspicious. We will review that on this site soon. Keep in mind that many central bankers want to keep gold’s price down.

The Chinese Central Bank, India and Russia are buying the large percentages of the gold bullion and look upon the price weakness as a tremendous buying opportunity. They shrewdly take advantage of the price declines and weakness to steadily buy the bullion that comes to the market for sale.

Peak Gold! The easy to find and extract gold has already been discovered. Eight years ago, the average cost to extract an ounce of gold was approximately $400 per ounce; today the cost is approximately $800 per ounce. We are referring to only the extraction and not the average “all in cost” which includes all costs and is currently approximately $1255 per ounce.

The world is still printing money at an incredible rate and debt is growing at an alarming rate. Eventually it will end disastrously.

The Brokerage Industry does not want nor can it tolerate a bull market in gold. The brokerage industry will contest a bull market in gold since it generally occurs concurrently with a bear market in industrial stocks. The brokerage industry’s profits decline during bear markets and the profit potential for the industry during bull markets in gold and gold stocks is limited.

The majority of producing gold mining companies are selling their gold production at below their “all in cost” per ounce. Until we see the $1400 to $1450 level and more, the cost pressure will continue and profitability for most will remain elusive.

Cycles in gold? Keep in mind that no cycle must occur, nor must a cycle be on an exact schedule. Moreover, they should be studied with cycles and events that are occurring in other markets. Remember, in one way or another, all of the markets are related and can exert a tremendous influence on other markets. Technician John Murphy’s book “Intermarket Analysis” focused on the inter-relationships of the markets; it provides an excellent study in technical analysis.