On Friday, Rick appeared on the Korelin Economics Report. In Rick’s segment, the topic of discussion was the precious metals markets and where Rick believes they are headed. The audio for the interview may be heard here,while the transcript of the interview is reproduced below.
Al Korelin: Hey, welcome in. You’re listening to a daily editorial on the Korelin Economics Report. I’m Al Korelin. I appreciate you joining me.
I’ve got Rick Ackerman on the line with me. By the way, this audio is being produced exclusively for our friends at Kitco. It’s been a while since we’ve been there. It’s just about two or three days I guess that we’ve been remiss. But boy, it has been busy, busy, busy.
I have a listener by the name of Bart who wrote a couple of e-mails yesterday regarding his pessimism about the precious metals markets right now. He doesn’t feel it’s a good place to be. My personal opinion is, long term, I think it is. That’s from a fundamental perspective.
But Rick, I sent you one of the comments. You said, “Whoever this guy is, he knows what the hell he is talking about.” Can you comment on that please?
Rick Ackerman: Well, partly because I agree with him, Al. I think that the weight of the evidence, technically speaking, is bearish. I look at these gold charts, and we’ve got August gold Comex closing up around $1567. But I can’t see it escaping a further dip down to just below $1500. $1497 is my minimum target. But at that point, the chart would look even worse.
But the point that he makes is that you’ve got to wait and see, really. Certain things can happen. I’m always open-minded to being contradicted or to changing my mind, at least. So if we get a decent move up in gold, we get what I call an impulse leg on the hourly chart, I’m willing to turn on a dime. But right now, it doesn’t look so good.
Al: When do you see it turning?
Rick: Depending. I can put my subscribers on a hair trigger, you know. We’ll look for one of these impulse legs on the 60-minute chart. But I think, just to be safe, I need to see right now when the Comex, maybe before Monday, $1611, which means that’s about a 45-point rally from here.
Al: What do you think is causing this bearishness, this bearish action, Rick?
Rick: Well, you don’t necessarily have to read it as bearish. It’s really been pretty sloppy. We’ve been in the range for quite some time. You might say that today, we are, the market for gold is virtually unchanged from early May.
So it isn’t so much bearish, as… I mean it’s prospectively bearish, because there are a lot of patterns that I’m looking at that point lower. But strictly speaking, the latest couple of months have been a wash.
Al: Yeah, well they have for sure. So basically, you’re suggesting people keep their powder dry at this point, is that correct?
Rick: Yeah. I don’t think there’s any reason to be all over this market. You can trade it. But that’s about it. It’s going up, and it’s going down. And from one day to the next, you really can’t predict it.
Al: Okay. There you have it, Bart. Your comment generated an awful lot of responses. We did a weekend segment on this. I did a segment on the Daily Show today, with Roger Wiegand, on this. I appreciate those comments.
Hey listen, we appreciate comments from everybody. We’re going to be back with you tomorrow.