first majestic silver

Gold, Debt, & Global Markets Rebellion

President of Graceland Investment Management
January 30, 2024

A global markets rebellion? Can it really happen, and how should citizens of the world prepare to handle it?

JP Morgan’s Jamie Dimon thinks it can happen. He gives America roughly the same decade of time that I’ve suggested the nation has…

Before global stock and bond markets tumble into the abyss in rebellious reaction to the US government’s debt addiction reaching “overdose” status. 

This is the long-term US rates chart. The inverse H&S action fits with Jamie’s scenario; bond market investors likely remain timid until around 2029.

From there? Well, from there out of control debt worship by the US government creates skyrocketing inflation, bond market terror, and when the 2030s begin… gold probably stages its next parabolic move higher, and does so as US stock and bond markets incinerate.

Why the year 2029? Well, one reason involves market cycles. Big market anniversaries and cycles need to be respected. October 2029 is the 100th anniversary of the epic 1929 US stock market crash!  

Also, “Super Trumpy Man” (Donald Trump) is likely to be elected again this year. He’ll do many good things, but getting rid of vile US fiat and replacing it with gold is unlikely to be one of them.  

He’ll drain the fiat swamp of some human swamp creatures, but unless he drains the fiat itself and replaces it with gold, not much can change with respect to the US government’s long-term debt obsession.

As Trump’s second term ends, a government debt fiend like Roosevelt probably gets elected in 2028… and eagerly announces dramatic debt expansion. 

That would create a huge wave of “breaking point” fresh inflation. US stock/bond market investors would finally balk at the insanity… and sell those markets aggressively with no plans to rebuy them.

Unlike in the 1930s, the average American now owns no gold, so there’s none to confiscate. The bottom line: There won’t be any confiscation this time, but there will be a lot of mayhem. America is a horrifying debtor nation now… it’s basically the opposite entity of what it was in the 1920s.  

The price of gold will go ballistic as the US government enters a de facto collapse state. That will create surreal amounts of new wealth for the gold-oriented citizens of China, India… and for savvy gold bugs in the West!

The road to the “Venezuelification of America” is a very real road, and to avoid becoming roadkill, gold bugs need only follow some very basic rules of the road.

Double-click to enlarge this fantastic weekly gold chart. There’s an inverse H&S bottom in play for the Stochastics oscillator (14,5,5 series), and H&S action is also apparent on the BPGDM gold stock sentiment index.

The BPGDM sits right above the 30 area, which is a major buy zone for the miners. I outlined the $2010 gold price as a key buying area for gamblers, and the trade looks great so far. For investors, $1973 (basis the cash price of gold) is the next big buy zone for the miners. Also, tomorrow’s FOMC meet and Friday’s jobs report could be the catalysts that launch gold’s next big rally, which may or may not begin from $1973.  

To succeed in the gold market, gold stock and silver bullion investors simply need to wait for $100+/oz gold price sales that put the price near previous key highs or lows… and buy there and only there. It’s really that simple.

A daily focus on the big picture is critical for investors as inflation, recession, the 2021-2025 war cycle, a wildly overvalued stock market, debt ceiling horror, 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!

Look at the daily gold chart:

Stochastics is flashing a buy signal in the oversold zone and a move over the red dotted trendline would usher in significant hedge fund short covering and long position buying on the COMEX.

This is the daily silver chart. Interestingly, silver has already taken out its downtrend line as of yesterday and there’s some loose bull wedge action in play.

The COT report for silver is in sync with the technical breakout. The hedge funds are price chasers and the deep pocket commercials buy value. It’s likely that the funds are already booking losses on their short positions and any follow-through to yesterday’s breakout should see them load up on longs… and ignite the next big rally!

The COT report is a lagging indicator, but it’s a very good one.  

Let's look at the miners:

While silver staged a nice breakout yesterday, the day also featured the arrival of “game changer” volume for this important CDNX junior stocks index. Some gold bugs have no interest in the junior sector, but key CDNX technical events are often followed by similar action in the intermediates and seniors… so it’s important for all gold bugs to keep an eye on major junior index events. The volume here is significant!

This is the GDX daily chart. GDX has a slight but bullish RSI non-confirmation with the price and there’s a budding Stochastics buy signal coming into play.

The FOMC announcement and jobs report could bring intense volatility. A double-bottom scenario at $27.25 for GDX (with gold approaching $1973) is possible, but unlikely. Regardless, after this week’s interest rate decision and employment statistics smoke clears, a major upside rally is the most likely order of business for gold, silver, and most miners too!

Thanks!

Cheers

St

Special Offer For Gold-Eagle Readers: Please send me an Email to [email protected] and I’ll send you my free “Get Jacked With J!” report. I highlight key GDXJ stocks that could surge after Fed man Jay’s speech this week! Both core and trading position tactics are included in the report.

Stewart Thomson

Galactic Updates

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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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