Gold & Miners: Key Investor Tactics

Debt worship and the simple rise of the citizens of China and India are two of the main reasons why the US government’s fiat currency is in trouble, and the trouble is likely here to stay.

While these analysts note that falling rates can drive capital out of the dollar, rising rates can do it too… if inflation rises faster than rates or it does significant damage to the economy.

On the one hand, Trump’s latest tariff tax “tantrum” is pretty tame; he’s lowered some of the rates.  

On the other hand, those taxes are not making the government “rich”. Ominously, they barely cover 20% of the government’s monthly interest payments.

Wharton analysts suggest the US government has about 20 years before the debt problem becomes “unfixable”.

The dollar has broken down from a broadening formation on the monthly chart.

Broadening formations suggest a loss of control in the market and the US government has clearly lost control of its financial situation.

Horrifically, the above chart is simply that of US fiat versus other government fiats.

When viewed against supreme currency gold, it’s clear that the US government doesn’t have 20 years to fix its debt problem.  

The time to do that was 50 years ago, and the government failed. The dollar is now in a never-ending death spiral against gold… and so are the rest of the fiats of the world.

What is the solution for a person who is gagged and tied to a terrorist’s chair… when the terrorist tells them it’s time to die? Unfortunately, there is no solution, and that’s akin to the situation the world’s fiats are experiencing today… with “Queen Gold” holding the gun.

Even if a miracle occurred and the US government did shrink itself dramatically to fix its hideous fiscal situation, the world’s focus is moving to China and India. The population there is vastly bigger…. and the citizens love gold.

In the “fabulous fiat fifties”, investors had to work on getting more fiat by investing in America, because its spectacular growth was the biggest theme in the world.

Today, the focus needs to be on getting more gold, because that’s the focus of the huge populations of the new “growth engine” nations of China and India.

This is a fabulous daily gold chart. A bullish consolidation is in play and the target is a closing price of $3650. An intraday high of $3700-$4000 is likely to be hit as gold breaks out and begins to rally.

The $3300 zone is a decent area for small fresh buys.

With gold looking so strong, investors need to take a close look at the miners. 

Double-click to enlarge this weekly CDNX chart. The inverse H&S base pattern is helping to create one of the most bullish set-ups in the history of markets. 

Many individual component stocks trading in the sub 10cents/share zone could become not simply “ten baggers” but hundred baggers… and more.  

Clearly, junior stock investing isn’t for everyone, especially with size, but as the gargantuan gold bull era rollout continues, these miners look set to outperform everything. At $199/year, my junior resource stocks newsletter is an investor favourite, and I’m doing a special pricing this week of $169 for 14mths! Send me an email or click this link if you want the special offer and I’ll get you onboard. Thanks!

Senior mine stock enthusiasts should like the bullish technical action:

A 14,7,7 series Stochastics oscillator buy signal is in play and while the price action around the $55 area highs looks timid, a close above $3440 for gold could see GDX surge to $65, and perhaps to as high as $85.

The mathematical target of the C&H pattern is about $60 but…

Patterns of size that are incredibly aesthetic (like this one!) tend to see the price rally significantly above the target zone.

With silver, platinum, and palladium all finally beginning to move like gold, metal bugs of the world are in great spirits, and rightly so. The miners look ready to stage a spectacular “seasonal inversion” rally, where rather than swooning into October, they surge (basis GDX) to all-time highs!

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 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:

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