Keep Your Powder Dry…There May Be A Great Opportunity Coming In Gold

I have both good news and bad news for Gold bugs.

The bad news is that the US Dollar is rallying hard. In fact it just broke out of a multi-year wedge pattern.  This is extremely bullish for the US Dollar… which will prove bearish for commodities, Gold included.

You see, with interest rates so low, financial institutions around the globe have been borrowing hundreds of billions if not trillions in US Dollars and plowing this money into everything from emerging market stocks to commodities.

The problem with this is that any US Dollar rally can trigger liquidations in the commodity sector. And this can hurt Gold as liquidations tend to be indescriminant.

Gold, on some level, knows this, which is why it’s recently taken out a long-term bullish trendline (the green line below).

That’s the bad news.  The good news is that this breakdown will likely result in Gold falling to $1000 or even lower in the coming months… which gives us the opportunity to buy the precious metal on the cheap.

Gold investors are not like stock investors. They don’t buy Gold simply to speculate. They buy it to hedge against catastrophe. And given that the financial system is now even MORE leveraged than it was in 2007, the opportunity to buy Gold at sub-$1000 courtesy of liquidations in the commodity sector would be one HECK of an opportunity.

After all, the next financial crisis is already beckoning around the globe. And when the Central Banks hit “panic” this time around, Gold will absolutely EXPLODE higher.

It’s coming. So keep that dry powder handy.

********

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwoge.html

Best Regards

Graham Summers

Phoenix Capital Research