Gold & The Intensifying War Cycle
The 2021-2025 war cycle is poised to intensify in the coming years… and perhaps in the coming months.
Did Nancy Pelosi visit Taiwan to deliberately create a war with China?
That’s unknown, but what is known is that war is more likely now than before she went there… and the current rumblings in the gold market are likely related to the disturbing ramifications of her visit
Gold has broken through one trendline on this daily chart, and it could break through another after tomorrow’s important CPI report.
The world’s “mightiest metal” seems poised to consolidate for a few days in the $1750-$1785 zone and then race towards $1850.
For America, the 2021-2025 war cycle is civil as well as global. I’ve predicted significant tension (and bloodshed) will occur in 2023-2025… on US soil
The US republican party’s rag tag “insurrection” was a dismal failure, but another one could happen if their de facto leader Trump is jailed.
The first insurrection featured republican citizens with pepper spray and sticks facing off against government police with guns. Some police officers seemed eager to shoot citizens and showed little regret after doing so.
The next US civil war cycle event could be much more serious, involving millions of fully armed citizens, both republican and democrat, facing off in a much bigger show of force that could quickly become a real civil war.
One of my ongoing concerns is that many gold bugs are overwhelmed with greed and own no physical gold. They own millions of dollars of miners, which is AOK, but in a major war cycle intensification, stock markets would crash, and miners might crash (due to stock exchange closures).
This, while gold bullion would go ballistic against fiat
Owning some bullion in a war cycle is essentially “mandatory” for all gold bugs of the world. The spectacular weekly close gold chart.
A bull wedge breakout is in play, and after some whipsaw action around the CPI report, gold is likely to make a beeline for $1850, $1875, and $1915.
Gold also has a lot of support right now; oil may be ready for a short-covering rally, the Indian wedding season is underway, and China holds a lot of supply chain cards that it could play against the West if the Taiwan situation devolves.
The daily oil price chart. Oil has arrived at the outskirts of my $85 buy zone. Funds have implemented some short positions, and liquidity is drying up. That’s fuel for a short-covering higher priced fire.
Joe Biden’s “inflation reduction” plan (funded with debt, extorted citizen funds, and printed fiat money) will reduce prescription drug costs, but those drugs will see rampant demand if there is significant intensification of the US civil war cycle.
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As the saying may go, all gold bullion work and no mining stock play is no fun. The important bullish percentage chart for the GDM gold miners index shows the miners are in fabulous buy zone.
As a rough rule of thumb, 30% or lower is the buy zone, and 70% or higher is for selling. Clearly, at about 15, the big action must now be… buying!
XME has performed spectacularly well from the $1675 buy zone for gold
But it’s time to book partial profits and buy items like GOAU for a bigger surge, starting after this week’s CPI and PPI reports are done.
XME has done incredibly well against GOAU since the highs for gold in March were hit.
It’s now GOAU’s time to shine!
The next Fed meet is Sept 21 and GOAU has a solid chance of rallying in a big way into the Sept 7-14 period, when money managers will begin to focus on the Fed.
Special Offer For Gold-Eagle Readers: Please send me an Email to [email protected] and I’ll send you my free GOAU vs GDXJ components report. I highlight key component stocks of each ETF, with winning buy and sell tactics for each of them!
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Cheers
St
Stewart Thomson
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