Gold And Stock Market: Key Tactics Now

September 8, 2020
President of Graceland Investment Management

The government saved nothing to prepare for any type of crisis, and the result of that failure is obvious.

The important weekly gold chart.

As horrifying as the failure-to-save actions of the government are, I’ve argued that most of the Corona crisis debt is factored into the gold price.

A consolidation of the enormous rally could see gold pull back to the key weekly chart high at $1788, or even to the low at $1671.

From there, gold should rise above the $2000 marker in a more permanent way.

The US government has no intention of creating a piggy bank to manage any future crisis, but they are not alone:

This will not be the last pandemic… but when the next pandemic comes, the world must be ready, more ready than it was this time.” – World Health Organization (WHO) Director-General Ghebreyesus, Sep 7, 2020.

The WHO wants more investment into health, but the unfortunate reality is that the next crisis (health, markets, or war) can’t be predicted very well, so the best preparation for crisis is always a savings program.

Whether it is government, central banks, or health organizations, what they all have in common is a refusal to make saving money a cornerstone of crisis preparation.

This is one of the many reasons why gold will never stop rising against fiat over time.

The US stock market chart.

The 27,500 area is a decent support zone. If it fails, a significant decline is possible, but investors know the government supports what I call stock market socialism.

If the market crashes, the Fed will immediately print vast sums of money and use it to support stock and government bond markets. This, while many senior citizens and unemployed workers are still waiting to get their first Corona relief check!

Each recent stock market meltdown has been caused by the government failing at war.

The trade war failed, until the Fed stopped the market from crashing with its printing press. The virus war was also a financial disaster, until the Fed stepped in.

Each bout of money printing that excludes pensioners and the working class widens the wealth gap. The poorer citizens are becoming incredibly angry.

It’s only a matter of time before printing money only to save the stock market and the government creates a civil war… unless a lot of that money starts going to Main Street.

If it goes to Main Street, as I’m predicting it will, significant inflation will develop. Money managers will flock to the metals and the miners.

As noted, patience is required. That’s because most of the government’s failure in the Corona crisis is factored into the gold price. Lower prices in the short term are as likely as higher ones.

The SQQQ chart. The SQQQ is a leveraged bear bet on Nasdaq stocks, and it’s a gargantuan cash cow right now for my https://guswinger.com subscribers.

The current stock market smash is only a preview of the macabre action that lies ahead. I believe the 2021-2025 period is going to offer the greatest shorting opportunities in the history of the US stock market.

The only winners of the upcoming US election will be more debt and more citizen versus citizen hatred. As the madness continues, the stock market could fall much like it did in 1929.

The SIL chart. A fresh higher high is in play, and I’ll note that the price of silver is unchanged as I write this sentence, while gold is down about $15.

Silver bullion and silver stocks are the strongest sector of the precious metals asset class right now, and if investors don’t have a position, the current market softness offers a solid opportunity to get onboard!

Special Offer For Gold-Eagle Readers: Please send me an Email to freereports4@gracelandupdates.com and I’ll send you my free “Golden Intermediates On The Move!” report. I highlight ten key intermediate gold producers that are poised to soar, when $2000 gold becomes a floor! Key buy and sell prices for action are included in the report.

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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.

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