Gold, Oil & War: The Orwell Narrative
Are markets as wrong about oil and the war, as this analyst suggests?
Perhaps, but what about… oil and gold? Sadly, mainstream media has painted a narrative where skyrocketing oil is deemed to be a sell signal for gold because “gold pays no interest” and “the Fed might hike rates by 1/4 point (but likely not) while real inflation is 15%”, so “gold must fall down hard against fiat.”
Western analysis of oil, war, and gold is horrifying and arguably despicable. It looks like something out of a George Orwell novel… but it’s real.
For a look at currency market reality:
As rates rise, the debt-funded US government must borrow even more fiat to finance itself. It also must blame more innocent global citizens for its own financial failure and try to steal what those citizens have.
Ancient Rome’s government turned into pirates when their debt went out of control, and the same thing is happening to America’s government now. In a nutshell:
Fiat is the money of government ding-a-lings and gold is the money of global citizen kings.
What are the best price zones for citizens to get more gold? For some key insight into this awesome matter:
This is the daily gold chart. The $4400 area was a big buy zone for gold. $4100 was a smaller zone.
Now, investors may be best served by focusing on time rather than price. That’s because gold could be in a range trade for the rest of the year and a monthly buy program (or weekly for aggressive players) would be ideal in this situation.
Buy programs that involve time can reduce investor obsession with predicting the next move for the price. That obsession can put the investor on a roller coaster ride, repeatedly gyrating from a state of terror to greed.
Getting more gold is vastly more important than predicting the next short-term move but when it comes to price, $5600, $3900, and $3500 are all great zones to buy, on a future drop into those zones.
In the case of $5600, if gold were to rise to about $6500-$7500, that $5600 area would become one of the most important zones to buy… in the entire history of the gold market. From there, a wild surge to $15,000-$20,000 would be likely.
What would be the catalyst for such incredible price action?
This is the exciting US rates chart. A huge inverse H&S pattern is in play, targeting the 7%-8% zone.
The inflation currently being experienced by the average US citizen is probably in the 8%-15% range. It’s only a matter of time before the current “potentially rising rates are a sell signal for gold” institutional money manager mantra morphs into this one:
“Rising rates show that inflation and the government’s ability to finance itself are both out of control, so it’s time to buy a lot more gold, and keep buying it for the foreseeable future!”
This is the 40year US inflation/deflation cycle chart. If the Fed’s new boss Warsh takes away the government’s QE “candy bars”, the government won’t stop going deeper into debt and…
Warsh may not hike rates… but the market will.
A daily focus on the big picture is critical for investors as inflation, tariffs, war, 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 doing a $179/15mths “special offer” this week 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!
The US government refused to announce national emergency spending cuts. Instead, they launched illegal (and inflationary) tariff taxes. These de facto pirates are now chanting that they’re ready to steal all the oil from 90 million Iranian citizens.
Even if they got all that oil, it wouldn’t stop them from going even deeper into debt while scapegoating even more innocent citizens around the world for their own financial mismanagement, causing even more central banks and money managers to dump their bonds. It’s a vicious circle and here’s the bottom line:
Gold looks to be headed to $20,000 and rates to 20%.
What about the miners?
This is the glorious GDX chart. A magnificent inverse H&S pattern is taking shape.
The head of the pattern formed at the key $85 support zone and the 14,7,7 series Stochastics oscillator marked the low.
A two-day pullback is in play and that puts the price near $92 which could serve as a launchpad for the next leg up. A larger buy signal basis the key 20,40,10 series MACD indicator also appears to be imminent… so imminent that it could happen today!
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
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 dailyhttps://www.gracelandupdates.com/
Email:
Rate Sheet (us funds):
Lifetime: $1299
2yr: $299 (over 500 issues)
1yr: $199 (over 250 issues)
6 mths: $129 (over 125 issues)
To pay by credit card/paypal, please click this link:
https://gracelandupdates.com/subscribe-pp/
To pay by cheque, make cheque payable to “Stewart Thomson”
Mail to:
Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada
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?
********
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.
