4 Gold Stories & 4 Smokin' Hot Charts

Precious metals miners seem to be taking a pause to catch their breath; we'll see if it turns into something more. Personally, I'd like a buyable pullback, but I don't know if I've been that good. 

Miners seem to have been leading the metals, so maybe this is a taste of something bigger. But see my S&P 500 chart below if you are counting on a BIG pullback.  Might not be in the cards. 

Here are four gold stories I find interesting ...

"Meadowbank" sounds like such a nice name, doesn't it? I remember the briefing on this project. It sounded insane then.  "Mining Gold at Minus 45 Degrees Celcius"

Drought Triggers New California Gold Rush: Prospectors in Southern California are heading to the hills, saying the severe drought has exposed gold that has never been touched by human hands

China’s gold imports from Hong Kong fell in January. Mainland Chinese buyers purchased a total of 102.6 tons in January, including scrap, compared with 126.6 tons a month earlier and 51.3 tons a year earlier, data from the Hong Kong government showed. It's not a big deal; seasonal and holiday issues are at work here.

Interesting: Sales of gold coins by the U.S. Mint, the world’s largest, are heading for the worst month since September after prices jumped to a 16-week high. This is a clear sign of price affecting demand.  US coin demand doesn't matter in the big picture; what matters is if price affects Chinese demand. Let's wait and see about that.

While we chew over that, here are some charts for your consideration ...

Chart #1: A New Way to Look at Consumer Confidence

I snagged this off of Twitter and promptly lost the link. Anyway, this longer-term look at Consumer Confidence, applying technical analysis, says that we may be at or nearing a top.

Chart #2: Gold Smuggling in India

Estimates are that India catches 1 in 3 smuggled ounces on a good day. The Wall Street Journal has the story. 

Chart #3: The S&P 500 Recovers From Its Pullback

Did you buy the dip in the S&P 500. I know, it was so three weeks ago. You'll get another chance, buddy.

Chart #4: US Defense Spending

Seriously, the amount we spend on armaments in this country is insane.  Now, the military is looking at the deepest cuts since the end of World War II.  Yet the Air Force still wants to hang on to that dog of an F-35 fighter, and will scrap the A-10 Warthog -- the best ground-support plane ever, a plane which the Air Force brass distinctly did not want -- to do it.