Peter Grandich has a new contrarian indicator, The GNEMI-The Grandich Nasty Email Indicator. These days he’s getting a lot of negative feedback about gold, silver, and junior mining prices. Bulls are starting to lose faith, but not Peter. He’s been in these markets for decades, and he knows that cycles always repeat themselves, no matter the market. He’s expecting selling pressure in the wake of next week’s religious holidays. Major holidays always lead to thinly traded markets, which inevitably lead to opportunities to manipulate prices. With all the unbacked paper floating around the metals markets these days, it’s a pretty safe bet.
However, don’t forget that demand for the precious metals is booming all over the world! China, India, Vietnam and so many other countries have stepped up their purchases. How much longer can the market proceed before price discovery reasserts itself? Probably not too much longer, and when it does happen, it will be the cover story on all the financial publications around the world.
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