1. In the West, gold has rallied decently during five of the past seven recessions.  I’ve suggested that the current situation in America is something like 1965 – 1970, when inflation began a long and strong up cycle.
  2. That’s partly why I’m adamant that it’s the best time in American history to own a portfolio (a global portfolio) of companies involved in precious metals mining and jewellery.
  3. The other reason that I’m excited about these stocks is that in the East, when people get richer, they buy gold.  They are now getting a lot richer, and a lot faster. 
  4. Simply put, deflation is out, and inflation is in.  It’s really that simple, and investors around the world need to get positioned right now to ensure they get maximum financial benefit.
  5. Please click here now.  With their statements and analysis, Morgan Stanley moves “thunder cash” in the institutional investor community.
  6. Their top US equity man, Mike “Mr. Big” Wilson, predicts that while US markets are a clear short-term buy, valuations peaked in 2017, and prices will peak in 2018.
  7. I’m in 100% agreement with Mike.  Tactically, I’ve urged investors who are not afraid of price chasing to buy some bank stocks, energy stocks, and growth stocks.  Gamblers can buy call options.
  8. That’s how to play the final months of upside fun in the US stock market, but investors must be seriously prepared for years of inflationary bear market horror to follow this blow-off top.
  9. I’ve predicted that only the most astute stock pickers will survive being invested in the US stock market from 2019 forwards.  In the coming inflationary inferno, index and ETF investors will essentially be turned into tumbleweed, burning in a financial desert.
  10. When will the inferno begin?  Well, I think it happens in the upcoming September – October US stock market “crash season”, and by year-end at the latest.  I expect gold to go ballistic as that happens, because it will be an inflation-oriented meltdown, and that means institutional thunder-buying takes place in the metals.
  11. Please click here now.  Double-click to enlarge this GDX chart.  In terms of time, I think gold stocks will initially surge higher for two to three years as the stock market falls.
  12. Most of the gains should be sustained due to an imminent drop in US and Chinese gold mining production.  Canadian, Australian, and Russian miners should be the clear leaders in what I call the gold bull era. 
  13. Note the diamond pattern in play on that GDX chart. A drift down from it now would put GDX at my key buy area of $21 just in time for the Fed’s next rate hike.  That hike will put another major nail in the US stock market valuations coffin.  It will be followed at the end of June with another ramp-up in QT.
  14. Many investors who failed to buy the stock market in 2008-2010 and are buying now are trying to convince themselves that the Fed will back off from more hikes and QT.  This is very childish thinking.  Those engaged in it will soon learn the hard way that the Fed doesn’t care about their silly stock market price chase.
  15. On a demographics note: In my professional opinion, about 60% of the Western gold community is now composed of younger “smart money” investors.  They have been invested in the US stock and bond markets and are becoming very concerned (and rightly so) about the growing risk that inflation will cause a severe bear market in these traditional asset classes.
  16. This new breed of gold bug has more patience than the “old guard” gold fear trade investors.  The old guard focused more on financial system risk and government debt that threatened to create a kind of “parabolic moment” of vertical price rise for precious metals.  The transition from deflation to insidious inflation is an enormous process that requires investor patience, but it is now well underway.
  17. Please click here now. Double-click to enlarge this beautiful silver chart.  The silver price has been consolidating the rally from the summer of 2017 in a nice symmetrical triangle pattern.  Silver is highly correlated to gold, but during periods of inflation there is also a significant correlation with sugar.
  18. That’s because the average “man/woman on the street” tends to see gold as too high-priced to buy.  Silver’s lower price is more enticing, and they can relate to an ounce of silver rising like the price of a pound of sugar rises.
  19. Please click here now.  Double-click to enlarge.  Sugar is arguably even better than money velocity as an inflation indicator.  
  20. Investors should watch for a two-month close over the blue downtrend line.  That must be followed by a two-week close over sixteen cents a pound.  That price action is likely to indicate that inflation is becoming a firestorm for the stock market and will function as a green light for most gold stocks to blast higher.
  21. Note the peak in the summer of 2016 for sugar.  That functioned as a red light for gold stock investors.  The next signal will be a green one and investors need to get prepared now.
  22. In contrast to the hyperinflation envisioned by older gold bugs who focused on bank and financial system risk, the type of inflation that is coming now is more like the inflation of 1966 -1975, on an even bigger scale because of rampant Chindian income growth.  It’s insidious.
  23. This inflation will last for a hundred years and likely for much longer, not just for a decade or two like in the 1970s.  It’s a process akin to millions of solid gold termites invading the US stock and bond market house.  No bug spray works, so the institutional investors inside the house will all leave.
  24. The bottom line: If you can’t fight a gold bug invasion, you have to join it.  Gold stocks will rise thousands of percentage points higher as investors begin to understand what is happening.  The inflation is imminent, and investors must get prepared!

Thanks!

Stewart Thomson 

Graceland Updates

Note: We are privacy oriented.  We accept cheques, credit card, and if needed, PayPal.

Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.

https://www.gracelandupdates.com

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?

  1. The next Fed rate hike is only about two weeks away, and another ramp-up in monthly quantitative tightening is scheduled for the end of June.
  2. Investors are generally quite positive about the economy, but they don’t have much cash to invest.  Most citizens of the Western world have meagre savings, a lot of debt, and inflation threatens to make matters worse for them.  A lot worse.
  3. Please click here now.  With each passing month, more institutional money managers and influential analysts voice major concerns about inflation being the catalyst that ends the US equities bull market.
  4. Please click here now. Double-click to enlarge.  The Dow has gone nowhere since Powell became Fed chair, and I expect it to go nowhere throughout his tenure.  That’s the best-case scenario.  I shouldn’t mention the worst-case, because almost nobody believes that the Dow can crash in inflationary inferno.  That’s not only the worst-case scenario, it’s by far the most likely one.
  5. Investors could buy very light positions in the buy zone I’ve highlighted on this Dow chart, and sell them in my sell zone, but sand in the bull market hourglass is running out fast.  It’s really a trade for gamblers.  Serious investors need to be lightening up here.  In my US stock market portfolios, I’m at about 30% cash, and it’s rising.
  6. Central bank tightening is a global theme and barely out of the starting gate.  It’s happening against the background of rising US government debt, corporate debt, citizen debt, and inflationary tax cuts.
  7. Citizens and governments are generally euphoric, as they were in 2007, 1999, and 1929. The difference between now and previous peaks in euphoria is that the average citizen doesn’t have much cash to spend this time.  It’s gone.
  8. Please click here now. Double-click to enlarge.  Since oil made its low in 2016, energy and tech stocks have received significant mainstream media attention.
  9. Oil is in a danger zone now.  At a bare minimum, a supposedly healthy correction is overdue. Trump wants oil lower and federal election campaigning has started in India.  Indian currency and bond markets are being ravaged by high oil prices and global central bank tightening.  Modi just flew to Russia and met with Putin.  His meeting marked the top in oil.
  10. I think the sell-off in oil could become more significant than most investors are prepared for, but once it’s over the arrival of significant global inflation will drive oil towards $200 a barrel.
  11. By this time next year, gold should be challenging the $1500 area, and perhaps trading as high as $1650 – $1750.  On that note, please click here now.  Luis Oganes is an institutional heavyweight.  He’s on the inside.  When he speaks, gold bugs need to drop what they are doing and pay attention.  He’s not only predicting gold will be at $1700 next year, but has the potential to surpass that juicy target price!
  12. Few investors realize that the major mining stocks that I hold in my www.gudividends.comportfolio are up an average of 150% from that 2016 oil market low.  They have blown away technology and energy stocks, and left the global stock market indexes even further behind.
  13. Most importantly, as inflation transitions from an institutional investor concern to an outright wrecking ball, I expect this fabulous performance of the giant base metal miners to continue, with gold and silver miners shooting past all market sectors to become the ultimate market darlings.
  14. Please click here now.  Double-click to enlarge.  The dollar is again in freefall against the yen, and that suggests the dollar will soon be taken to the woodshed by gold.
  15. Investing champions like Ray Dalio are working hard to make investors understand that gold is not simply a fear trade hedge.  Instead, it is the ultimate portfolio returns enhancer in good times as well as bad.
  16. Having said that, as inflation becomes a massive theme in 2019, investors can give gold any label they want.  That won’t matter.  What matters is that institutional money managers will be buying it with both hands…and with three if they had an extra hand!
  17. Please click here now.  Double-click to enlarge.  There’s nothing more glorious than a great gold price rally, and a big one is getting underway now.
  18. Note the technical perfection being showcased by the “queen of assets” on this short-term chart.  A symmetrical inverse head and shoulders bottom breakout was followed by a picture-perfect pullback to the neckline, and now, as I predicted, the queen of assets is following the yen and beating on the dollar like King Kong beating on a tin can.
  19. My next target is $1327, and I think gold can now reach up and touch that price with very little effort.  It’s a great place for short term profit booking and it should happen ahead of the key June 13 Fed meet.  After that pause and likely right shoulder low, gold should blast through $1375, and make a medium-term beeline towards $1450.
  20. Please click here now.  China just launched an important physical metals trading platform yesterday.  Attention all silver bugs:  Trading begins with base metals, but will quickly expand to include… silver bullion!
  21. I’ve referred to a future dominated by China and India being the gold and silver “bull era”. A key part of that thesis involves COMEX price discovery for gold and silver becoming vastly more related to physical demand versus physical supply.
  22. Price discovery has been dominated in the past by Western hedge funds gambling on gold-irrelevant nonsense from “Fed speakers” and “gold doesn’t pay interest” mainstream media propaganda. Bull era price discovery is already happening with gold, and silver is next on deck. Investors can write that down and take it to the bank.  The silver bullion bank!
  23. Please click here now. Double-click to enlarge this superb GDX chart.  Many of the component stocks are in roaring uptrends.  GDX itself has been coiling sideways since mid-April in a bullish drift.  That should be resolved with a significant rally that stuns most analysts with its intensity.
  24. The financial system and QE-oriented gold fear trade is alive but on the back burner. There’s a new generation of gold bugs in the Western gold community who understand that inflation is coming and will be here to stay.  The love trade and the inflation trade will form the backbone of the bull era.  Eager investors around the world who know this is true are now aggressively accumulating portfolios of gold stocks, in preparation for decades of upside fun!

 Thanks!

Cheers

St

 Stewart Thomson

Graceland Updates

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?

  1. Gold continues to act superbly for eager buyers in this time of seasonal softness.  Against a background of static mine supply, Chinese demand is strengthening slightly and Indian demand is moderately soft.
  2. The price action reflects these key fundamentals perfectly.  Please click here now.  Double-click to enlarge this important daily gold chart.
  3. Amateur investors should focus on $100 per ounce price sales for gold.  From the recent $1375 area highs, that makes my $1280 support zone even more important for accumulators of the world’s mightiest metal.
  4. Some investors are concerned that rising oil prices will increase the AISC (all-in sustaining costs) of miners significantly.  That was a legitimate concern during the past two decades when deflation and collapsing money velocity ruled the gold stocks roost.
  5. America now looks eerily similar to the late 1960s, when inflation began to emerge.  The oil shock of 1973 sent fuel prices skyrocketing, but gold stocks were bought aggressively by investors who were very worried about rampant inflation.
  6. Gold stocks soared as fuel costs soared.  That was then, and I believe it is poised to be now.  Here’s why:
  7. Bullion is a major asset class.  In terms of dollar volume, more bullion trades daily in London than the entire NYSE daily volume.  It’s the fifth most active FOREX contract in the world.  Simply put, the market for bullion products is gargantuan.
  8. In contrast, gold stocks are a very small sector of the market.  So, it only takes modest institutional buying to boost prices, and boost them quite significantly.
  9. Please click here now.  Double-click to enlarge.  This hourly-bars gold chart is technically positive.  Some “build-out” of the right shoulder is possible, but that won’t take long.
  10. The next COMEX option expiry day is May 24, and it should be the catalyst that launches the next great rally for the entire precious metals asset class.
  11. Please click here now. In 2014 I predicted that China would lead a “gold bull era” where investors buy exponentially more physical gold with their smart phones.
  12. Key gold jewellery manufacturers and retailers in China are seeing a significant increase in sales now, and I’ve predicted this is only the very beginning of what will be a glorious multi-decade ramp-up in online demand for gold.
  13. Please click here now. Top technicians at Goldman see the $1275 price zone as the outskirts of a key buying area, but it’s possible that the low for this “price sale” is already in!
  14. Please click here now. The fundamental drivers of American inflation are arguably as strong or even stronger now than they were in 1968.
  15. US demographics bear similarity to that time; in the late 1960s, the baby boomers were young and rebellious.  The London Gold Pool was ending. The free-trade for gold didn’t get completely launched until about 1974, but some gold products (like certificates) were free-trading by the late 1960s and gaining popularity.  Most importantly, it was happening as rates and inflation rose.
  16. A lot of analysts draw parallels between the economic policy of the Trump administration and the Reagan administration, and the policy is similar, but the Fed policy and the business cycle are not.
  17. Both administrations used tax cuts to promote growth, but the Reagan administration had the start of the greatest rate cutting cycle in American history as wind at its back.  It also took office at the end of a major economic downturn.
  18. The Trump administration faces a rate hiking cycle, the late stage of the business cycle, and the end of a twenty year bear market in money velocity.  The business upcycle has featured huge stock market buyback programs with only modest expenditure on business expansion.  That’s very inflationary.
  19. What’s essentially happening is the US private economy is expanding but overheating, and the US government is pushing rates higher with its huge budget deficit.
  20. An inflationary genie is poised to leap out of the bottle in a very big way.  The US private economy should continue to grow in the 3% range, but inflation will soon emerge.  The big loser in this situation is the US government, and rightly so.
  21. More inflationary tax cuts are almost certainly coming.  These cuts are necessary.  Even after Trump’s first tax cut, US small business taxes are still about twice as high as supposedly “socialist” Canada’s rate.
  22. Please click here now.  Double-click to enlarge.  The US dollar bear market rally against the yen is probably almost over.  A last push towards 112 – 115 is possible, but when Powell announces his next rate hike on June 13, it’s likely the end of the rally.
  23. Please click here now.  Double-click to enlarge this GDX chart.  While GDX appears sleepy, many GDX component stocks are in powerful uptrends now.  This often happens ahead of a major advance for indexes and ETFs like GDX.
  24. Investors should watch the $23.25 price zone for GDX very closely.  A two-day close above that line in the sand should ignite a multi-month advance towards my $30-$35 target zone, and probably by year-end.  That’s a huge percentage gain for eager accumulators who buy with gusto now!

Thanks!

Cheers

St

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?

  1. I’ve predicted that in 2018 the US stock market would suffer a series of crashes somewhat akin to the 1987 event, but smaller in size.
  2. Please click here now. Double-click to enlarge this interesting chart of the US stock market.  Clearly, these mini-crashes are starting to happen.
  3. Having said that, I haven’t sold any of my US bank stocks and I have no plans to do so.
  4. To understand why I’m still “long and strong” the bank stocks in this environment, please click here now. Bank profits are soaring because of tax cuts, QT, and rate hikes.
  5. Corporate boards are still using the bulk of the profits for stock buybacks and bonuses for the “fat cats”, while throwing crumbs to the lower-paid workers.
  6. As disgusting as that is, it’s a good environment to own stock market indexes, and a great environment to own bank stocks.
  7. This is the stage of the business cycle where “big growth” transitions to “decent growth with inflation”.  Simply put, in this environment bank stocks do well, growth stocks stumble, and gold stocks start to get modest liquidity flows from institutions.
  8. As the cycle moves to “inflation with low growth”, growth stocks crash, bank stocks fade, and gold stocks soar.
  9. Please click here now. Double-click to enlarge this key T-bond chart.  US interest rates are rising now and poised to rise relentlessly for the next several years.
  10. There are “institutional thresholds” of importance in major markets.  For the US stock market, institutions will generally continue to buy stocksuntil the ten-year yield reaches the 4%-5% range.
  11. Please click here now: http://www.graceland-updates.com/images/stories/18mar/2018mar27tenyearyield1.png Double-click to enlarge.
  12. Goldman is predicting four rate hikes this year and I’m predicting a minimum of three. The yield should get close to 4% by the end of this year.
  13. I realise that most gold bugs are “stock market crash enthusiasts”.  There’s no question that the US stock market has soared mainly because the “hot air” of QE and low rates has incentivized corporate boards to focus on stock market buybacks rather than worker wages and business expansion.
  14. Having said that, patience is required.  Investors need to focus on the slow but steady cyclical transition from growth to inflation as the Fed pushes the enormous QE money ball out of government bonds and into the fractional reserve banking system.
  15. Please click here now. Double-click to enlarge this fabulous daily gold chart.  The rectangle pattern is flag-like, and suggests gold is coiling to burst above my key $1370 resistance zone.
  16. Short term traders who took my recommendation to buy the $1310 area should be sellers in this $1340-$1355 area.  That’s because there could be quite a bit more coiling action before a true breakout above $1370 occurs.  The bottom line is that  investors need to be patient and traders need to book profits now!
  17.  Looking at the big picture, the inflation trade is clearly becoming more positive for gold every day.  The Trump decision to appoint John “The Hawk” Bolton to a key post in his administration makes the geopolitical trade for gold a positive one as well.
  18. What about the love trade?  Well, please click here now.  The 2019 Indian elections are approaching and the Modi government is likely to win again.
  19. Modi is backed with “monster money” and to ensure he wins again he’s launching a huge farm income program called MSP.  This program is inflationary because it boosts crop prices.  That alone is positive for the global price of gold.
  20. The MSP program also is poised to create a massive boost in farmer income, and rural Indians always use extra income to buy more gold. Please click here now.  This MSP policy launch is happening at the same time as the influential Niti Aayog panel pushes the Modi government to implement a massive gold-positive policy agenda.
  21. I’ve been adamant that 2018 would see the absolute end of gold-negative policy from the Modi government, and the launch of positive policy. That’s clearly in play, and it’s going to exponentially accelerate relentlessly.
  22. Please click here now. Double-click to enlarge this GDX chart.  The technical action is superb, and investors should now be buyers of their favourite GDX and GDXJ component stocks on all two and three-day pullbacks.
  23. Please click here now.  Double-click to enlarge.  With food inflation set to surge in India and general wage and price inflation on the move in America, it’s time for investors to take a more serious interest in silver stocks.  The big upside action won’t start until there’s a volume-based breakout from the bull wedge pattern on this silver stocks ETF chart.
  24. Call option buyers should wait for that breakout before buying, but all silver stock enthusiasts should be buyers of key SIL component stocks right now.  Use two and three-day pull backs to take buy-side action, in preparation for the imminent upside rocket ride!

Thanks and Cheers,

Stewart Thomson, Graceland Updates

https://www.gracelandupdates.com

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?

  1. Technically and fundamentally, gold is poised to resume its magnificent rally that is taking investors into what I call a “bull era”.
  2. The next FOMC meeting announcement is tomorrow.  I expect the Fed to strongly signal more rate hikes and ramped up quantitative easing.  There’s an outside chance that bank deregulation is addressed, but that’s likely going to happen in the next meeting.
  3. Regardless, everything the Fed is doing is positive for inflation, negative for government bonds, and negative for the dollar.
  4. Please click here now.  Nothing is more terrifying to institutional bond market analysts than the prospect of significant inflation.
  5. The US government is on the ropes.  Rates are rising, QT is creating bond market liquidation, and wages are starting to surge.  The inability of the US government to finance itself in an inflationary environment means rate hikes and QT are negative for both the bond market and the dollar.
  6. Please click here now. Double-click to enlarge this key short term gold chart.
  7. Even though gold has rallied more than $100 an ounce in a very short time frame, the pullback action is very positive.  It’s taking the shape of a small positive wedge formation. Solid Chinese New Year demand is likely behind the positive nature of this soft pullback.  Global gold investors should be buyers at $1328, $1310, and $1300, with a bigger focus on gold stocks than bullion. 
  8. During deflationary times, bullion is the leader.   During the inflationary times that are beginning now, mining stocks are poised to dramatically outperform bullion.
  9. Global growth with inflation and the end for the great global bond market should create at least a decade of gold stock outperformance against gold.  These stocks are essentially poised to enter a period of growth much like Main Street America experienced in the 1950s.
  10. While all the current news is very positive for gold market investors, the best news of all may be coming on Thursday.  Please click here now.  On Thursday, India’s national budget is announced and a duty cut may finally happen!
  11. Gold’s uptrend against US government fiat ended in 2011 – 2012 as India began increasing the import duty aggressively.  This essentially put millions of jewellery workers on the bread line and shuttered hundreds of thousands of small jewellery shops.
  12. The bottom line is that Indian government duty hikes basically nuked Western gold mining stock enthusiasts and put the survivors in a horrifying gulag.
  13. For the past several years, jewellers have begged the government to begin reducing the duty.  Unfortunately, the government has shown no interest in announcing even a tiny cut.
  14. Until now.  While the commerce department has called for a duty cut for years, this is first time the all-powerful finance department has addressed the issue in a positive way.  So, a cut on Thursday is not a “done deal”, but the odds of it happening are now vastly higher than at any time since the import duty peaked at 10% in 2013.
  15. Jewellers and dealers are not buying gold in any size now, because they are anticipating the government will finally give them a cut.  That’s created some gold price softness over the past week.  I’ve suggested that a duty cut could be the catalyst that blasts gold over the $1370 area highs.  In turn, that would usher in the start of a rally to massive resistance at $1500.
  16. For gold, a duty cut in India has truly gargantuan ramifications.  It is the equivalent of a corporate tax cut in America.  It restores confidence amongst citizens and shows that the government understands not just sticks, but carrots.  When citizens feel good they are more productive.  GDP grows, bringing the government more tax revenues.  Thursday could be a truly epic win-win day for gold and all its global stakeholders.  Are investors prepared?
  17. Please click here now. Institutional money managers are starting to see the myriad of inflationary lights flashing that I predicted were coming.
  18. Money velocity is starting to rise.  The upturn is subtle, but it’s there!  As Powell takes over the Fed and ramps up QT, I expect money velocity to surge aggressively from the 60-year lows that it sits at now.  As this happens, gold stocks should essentially “run rickshaw” over bullion.
  19. Also, key Chinese gold mining stocks that I use (and own) as key lead indicators for Western miners are staging what can only be described as massive long term chart breakouts.
  20. Please click here now. Double-click to enlarge this GDX chart.
  21. In the summer of 2017, I outlined the $23 – $18 price zone as a key buying area for all gold stock enthusiasts.  Investors who took my recommendation are looking good now.
  22. Note the return line that I’ve highlighted on the chart.  The price is almost there now.  Solid rallies often begin from these technical return lines.
  23. Chinese “Golden Week” holidays begin around Valentine’s Day.  That’s still two weeks away.  Gold markets close for a week, and the price usually softens.  The jobs report is this Friday. Gold typically rallies in the days following the report.  A duty cut, gold-positive statements from the Fed, and post jobs report market strength could see GDX reach my $25 – $26 target by Valentine’s Day. 
  24. From there a significant market correction would be expected, followed by a major surge to multi-year highs.  Please click here now. Double-click to enlarge this GDX weekly chart.  In 2018, GDX should surge out of the significant symmetrical triangle that I’ve highlighted.  With powerful institutions buying, it should easily reach my $30 – $32 target zone.  Gold stocks investors are basically sitting on an inflation-themed money train that the Fed is going to turbocharge with rate hikes, QT, and bank deregulation.  All aboard!

Thanks,

Stewart Thomson, Graceland Updates

https://www.gracelandupdates.com

Email:

stewart@gracelandupdates.com

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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