Riding The Gold Money Train
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Amateur investors tend to focus on predicting what’s next for their current situation. In contrast, professionals prepare for a future that is mostly unknown.
In 2019, when I talked about preparing for a potential 2020-2021 virus cycle, most investors ignored my warnings, and many paid a horrifying price.
They were focused on the US election because it was the current event in play. A focus on what is happening today is easy, and… focusing on what is easy is a hallmark of the end-stage of empires.
A lot of gold bugs are now focused on the “vax” discussion, but they mainly discuss the questionable vax for Corona rather than the failed fiat vax for gold.
The bottom line: gold investors don’t need a fiat vaccine. They just need to follow some basic rules.
Investing in gold requires a “keep it simple” approach.
I like to start my investing day with this chart.
Sadly, if libertarians had spent a fraction of the time-fighting fiat, that they now spend fighting Corona vaccines…
There would never have been any lockdowns because the government couldn’t have paid for them with printed fiat money.
Corona is old news and a focus on that virus and related vaccines won’t make gold investors richer.
What lies ahead is a potential war cycle (2021-2025), potential stagflation, and a possible “super top” in the US stock market.
The bottom line: America may be at a time that is a hybrid of 1861, 1929, 1939, and 1966… a horrifying mix of war and stock market cycles.
It looks like Jay Powell will need a new reason to continue his silly “inflation is transitory” narrative. He’ll likely claim that the floods are a black swan that simply delays his “grand taper” and rate hike plans.
My suggestion to the world’s gold bugs is to be much less sure than Jay is about his roadmap for US inflation.
Note the action of the key 14,5,5 series Stochastics oscillator at the bottom of the chart.
A buy signal now seems imminent, and that’s a major green shoot for investors.
Back in 2012, I suggested this gigantic “bull continuation pattern of champions” could form, and now it has not only formed but nears completion!
The right shoulder has an inverse H&S bottom pattern within it, which is another strong green shoot for investors.
What about silver?
The same bullish pattern is on the long-term silver chart. It’s less aesthetic, but it’s there!
When nations go to war, the military tries to establish “green zones” for civilians. It’s very important for mining stock investors to do the same thing and on that note…
The bottom line: Major weekly chart support zones for gold bullion against fiat are green buy zones of safety for mining stock investors.
This caveat applies, regardless of whether the investor is focused on juniors, intermediates, or senior miners. GDXJ looks good but it’s in an “amber light” buy zone.
Investors don’t have a gold bullion green zone of support for buys made here. That means small size or stop losses are required to manage the risks. In the time ahead, a fiat vaccine is not required, but patience is. Patience is not just a virtue… it’s awesome!
Special Offer For Gold-Eagle Readers: Please send me an Email to [email protected] and I’ll send you my free “CDNX Hot Shots!” report. I highlight ten CDNX miners that benefit from higher gold prices but also follow the CDNX index when it rallies. Key buy and sell tactics are included for investors!
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Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form. Giving clarity of each point and saving valuable reading time.
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:
Are You Prepared?
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Stewart Thomson is president of Graceland Investment Management (Cayman) Ltd. Stewart was a very good English literature student, which helped him develop a unique way of communicating his investment ideas. He developed the “PGEN”, which is a unique capital allocation program. It is designed to allow investors of any size to mimic the action of the banks. Stewart owns GU Trader, which is a unique gold futures/ETF trading service, which closes out all trades by 5pm each day. High net worth individuals around the world follow Stewart on a daily basis. Website: www.gracelandupdates.com.
