Gold Bugs Versus Mainstream Narrators
Oil and war are headline news again, and mainstream media is trying to claim that all that matters… is a possible rate hike that’s negative for gold.
The narrative is nonsensical, and for some insight as to why this is the case:
Gold doubled against US fiat (from $2000 to $4000) while rates went from near-zero to 5% but…
The mainstream media narrators want gold bugs of the world to believe that another quarter point rate hike related to more hideous war is a reason gold should plunge into the abyss against fiat.
These narrators have the story all wrong. Gold isn’t falling because a glorified soup kitchen (the Fed) might possibly do a tiny rate hike on its highly questionable fiat currency. That hike hurts the debt-obsessed US government a lot more than it hurts gold; if rates went to just 8% (normal in the 1970s), the US government would likely default on its interest payments.
To view what’s really driving the current price of gold:
About 40-70 tons per month of gold demand are now gone from the global market due to new Indian government tariff taxes and a decree that urges citizens to buy no gold for a year.
In addition, some central banks have stopped buying gold. Others are selling it outright. They need to raise fiat cash to manage the economic damage from the crazed battle between the US and Iranian governments for control of the Strait of Hormuz.
America’s SPR is starting to look like something the cat dragged in… and it will need be refilled with more than a just few token barrels.
For another look at the horror:
At this point, the chart target appears to be… zero!
The refilling of global government oil reserves will put substantial upwards pressure on the price of oil… and inflation.
In the 1970s, the silly narrative about gold, rates, and inflation imploded as inflation and rates rose aggressively… and gold skyrocketed.
The same thing is set to occur again and given the outrageous amount of debt that governments eagerly take on now, the implosion of the narrative would be on a much bigger scale.
This is Breakwave “shipflation” ETF. It’s up well over 100% in a year.
While silly stock market investors chase the next hot (and outrageously overvalued) AI stock, inflation-oriented “Clydesdales” are quietly taking charge.
Once investors understand the real drivers of gold in the current market, they can ignore the silly catcalls of the mainstream media narrators and focus on key zones to get more of supreme currency gold… and get it with a smile.
A daily focus on the big picture is critical for investors as inflation, war, a wildly overvalued stock market, horrific debt, and empire transition dominate the investing landscape. I cover this big picture 5-6 times a week in my flagship Galactic Updates newsletter. At $199/year, investors feel the price is too low, but I’m offering a $179/15mths “special offer” that investors can use to get in on the winning action and meticulous analysis. Click this link to get the offer or send me an email and I’ll get you a payment link. Thanks!
For a look at the daily gold chart:
Note the low of $3900 that was established in late October. That’s become a solid zone to buy on this dip that has put the price close to it.
It’s possible that the CPI report today and tomorrow’s PPI put gold precisely at or slightly below $3900. Having said that, it doesn’t matter what price a “final low” ultimately ends up being.
All that really matters is that gold, silver, and mining stock investors work to ensure they are modest buyers into the zone.
For a look at the weekly chart:
The green arrows highlight zones to buy on a significant price drop into them.
The more arrows there are above a zone, the bigger the buys can be. Note that not all buy zones are of the same quality. $3900 is a decent one, but it’s not huge.
What about the miners?
A big rally is certainly overdue, but predicting the exact timing is a bit of a crapshoot.
The exciting news is that each of the previous buy zones (gold $4400, Dow 45,000, and gold $4100) rewarded investors with fast and powerful 20%+ rallies for most senior miners, and much more in some cases for juniors.
That type of move is not guaranteed, but it usually occurs.
Gold is clearly far superior to fiat. Gold, silver, and mining stock investors need to have a mindset that is stronger than that of the mainstream media narrators, so when gold arrives at a buy zone like $3900, rather than give in, they buy with a grin!
Thanks!
Cheers
St
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Galactic Updates
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