By Peter Degraaf
A few years ago Warren was interviewed on CNBC.The interviewer asked
him:"Where do you think gold will be trading five years from now?"His
answer showed an ongoing dislike for gold as he replied:"I have no
views as to where it will be, but the one thing I can tell you is it won't do
anything between now and then except look at you. Whereas, you know, Coca-Cola
(NYSE:KO)
will be making money, and I think Wells Fargo (NYSE:WFC)
will be making a lot of money and there will be a lot - and it's a lot - it's
a lot better to have a goose that keeps laying eggs than a goose that just
sits there and eats insurance and storage and a few things like that."
Here are some charts (courtesy Stockcharts.com unless indicated), that
Warren may be interested in seeing.
Featured is a chart that compares PHYS the Sprott gold trust to Warren
Buffett's Berkshire-Hathaway.Since bottoming in August and trapping a number
of bears, PHYS has taken the lead by breaking out above the 200DMA (blue
arrow), and successfully testing the breakout (green arrow).The supporting
indicators are positive (green lines), and the moving averages are beginning
to turn up.
Featured is the Berkshire-Hathaway chart.Price broke down at the 200DMA in
June (purple arrow).That was the first warning to bail out.In July price
tried to rise back above the 200DMA and was rejected. That was the second
warning.Price then broke down at the blue arrow along with the heaviest
volume of the year.That was the third warning.The supporting indicators are
negative, and the 50DMA is in negative alignment to the 200DMA, while both
are declining.Warren's pet stock is toast - stick a fork in this one.
In 1932 at Englehurst NJ some sailors were holding onto a German blimp
with long ropes.A gust of wind caused the blimp to rise suddenly and
quickly.Some sailors let go after hanging on for a few seconds.Some dropped
from a height of 6 feet, others from 10 feet.Three hung on for dear life.One
was hauled onto the blimp - two fell to the ground from a great height and
died.Knowing when to let go is very important.(Visit Youtube for a short film
of this disaster).
Featured is a chart that compares MNT.TO, the gold trust of the Royal
Canadian Mint to Berkshire-Hathaway.Since December this gold trust has quite
obviously outperformed Berkshire-Hathaway.The supporting indicators are
positive and the moving averages are in positive alignment and rising.Warren
could have made some serious money by selling BRK.A in December and putting
the money into this gold trust.
Featured is a chart that compares gold to Wells Fargo, one of the stocks
mentioned by Warren Buffett as being preferred to gold. Price bottomed in
August, broke out at the 200DMA, (blue arrow), tested the breakout (purple
arrow), and is now confirming the breakout (green arrow).The trend is in the
process of changing from down to up, via the new blue channel.
Featured is a chart that compares gold to the Dow Industrials. Price
bottomed in July and quickly broke out at the 200DMA (blue arrow).Then the
breakout was tested and confirmation came a few days ago at the green
arrow.The moving averages are turning up and the supporting indicators are
positive.The blue channel is indicative of the new uptrend that favors gold
bullion over Wall Street stocks.
This chart courtesy Gary Christenson www.deviantinvestor.com shows the
expected future trajectory, for the index that compares gold to the S&P
500 index.
Warren Buffett should know better than to claim gold is not a good
investment.For the past 50 years gold has outperformed stocks by a wide
margin.The next chart is courtesy Bill King's 'The King Report' and was
recently featured in an article at Zerohedge.com by Phoenix Capital Research.
In this chart the Dow Industrials are black, the S&P is pink and gold
is blue (and at the top of the chart).
According to King, Gold has risen 37.43 fold since 1967. That is more than
twice the performance of the Dow over the same time period (18.45 fold).
So much for the claim that stocks are a better investment than Gold -
long-term.
It could be that Warren Buffett is overdue to get his knuckles rapped, for
supporting Planned Parenthood to the tune of 1.2 billion dollars, while
Planned Parenthood is in the disgusting business of selling body parts from
aborted babies.Sometimes these actions will come back to bite you.He's had an
easy time during the Obama presidency, with at least one sweetheart deal in
2011, involving billions of dollars worth of Bank of America stock, at a
price and with a dividend not available to anyone else.Without special
treatment he may find future trends not nearly as much to his liking, (unless
he changes his attitude towards gold that is).
This chart courtesy Nick Laird, the genius chartist at Goldchartsrus.com,
features three US money supply trends.This picture guarantees a rising gold
price for many years to come.
P.S.Don't be surprised by short-term reactions to the new down trend
in Wall Street stocks, (a trend that is becoming obvious to more and
more technical analysts).
===>>> Courtesy Jim Quinn
During one of the greatest market collapses in history (in terms of numbers),
the stock market soared by 5% to 11% in one day, six times. Here are the data
points:
2008-10-13: +936.42
2008-10-28: +889.35
2008-11-13: +552.59
2009-03-23: +497.48
2008-11-21: +494.13
2008-09-30: +485.21
Peter Degraaf is a stocks and bullion investor with over 50 years of
experience.He publishes a daily market letter for his many subscribers.For a
copy of a recent report please visit his website www.pdegraaf.com and click on the
archives.
DISCLAIMERS:Please do your own due diligence.Peter Degraaf is NOT
responsible for your trading decisions. - Happy Trading!
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