Stewart Thomson
President of Graceland Investment Management
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.
Stewart Thomson Articles
Gold continues to consolidate with sideways price action after reaching the $1500-$1550 resistance zone.
The GOAU ETF continues to show case the most impressive technical action in the entire precious metals ETF sector. A bull wedge breakout with a pickup in volume is in play.
If investors bring proper tactics to the table, gold price reactions can be exhilarating.
For silver, all roads probably lead to the $22-$25 area. For gold, all roads likely lead to $1600-$1800. There could be significant bumps in these roads, probably involving time more than price.
China’s “Golden Week” holiday is underway and gold markets there are closed for the week. The demand vacuum created by this holiday often contributes to a gold price swoon, and that’s happening now.
SPDR fund (GLD-NYSE) gold tonnage roared above 900 tons yesterday, and now sits at about 908. That’s solid action, and I’ll dare to suggest there’s more coming!
Is the gold price reaction over? Well, since the rally began in the $1170 area, corrections have not lasted very long.
The US yield curve inversion suggests the next recession is about 18-24 months away. That recession could mark the start of a long period of stagflation like 1966-1980.
A year ago, I predicted that any US stock market sell-off would be accompanied by a dramatic surge in the price of GDX and GDXJ. That’s exactly what happened; the stock market tanked and key gold stocks soared.
The only better-looking chart than gold right now is… silver! Years ago, I coined the term “flagification” to describe the formation of multiple flags on the gold and silver charts.
