Gold & Rates: A New Reality
In 1973, the OPEC oil supply crisis sent gold soaring… while US rates surged.
Today, fiendish government narrators have promoted a macabre scenario where skyrocketing oil and rising rates is supposedly very negative for gold.
This is the CAPE/Shiller inflation-adjusted PE ratio chart. As long as the outrageously overvalued stock market doesn’t collapse, this false narrative stays alive, albeit on life support.
Investors who are chasing the price of AI stocks should instead be exhibiting patience; it’s only a matter of time before there’s a major drop that can be bought. Most current buyers will likely be badly underwater by the time that tumble reaches its crescendo.
The US government’s $40 trillion debt will almost certainly reach $50 trillion (and ultimately wild printing could take it to $100 trillion) before the house of fiat cards collapses.
Rates are on the move again, and not because the debt-themed economy is strong.
The rates currently offered to government bond investors are simply too low to compensate them for the growing risks they are taking.
For another view of the interest rate situation:
Rates are breaking upside from both a bull triangle and inverse H&S pattern.
The technical target for the next move is 6%. Every percentage move higher in US government bond rates puts more pressure on the false rates-oil-gold narrative because it causes interest costs for the technically bankrupt government to skyrocket.
For a long-term view of US rates:
This is best described as my death of the US government chart.
It’s only a matter of time before the false narrative implodes and gold, rates, and oil surge together, reflecting the reality of the 40year US stagflation cycle.
This is the short-term gold chart. All current scenarios favour the bulls. A pullback from here may not happen, but if it does it would likely halt in the $4200-$4100 zone and create a right shoulder for the inverse H&S pattern. The target of that pattern is the $4800-$5000 resistance zone.
For a look at the daily chart:
The flag-like drift also targets the same $4800-$5000 area.
On this weekly chart, a much more massive flag-like drift is apparent. It suggests the $4800-$5000 area could function as just a “pitstop”, enroute to at least $8000.
What about silver?
The new range trade for silver is $50-$120, and from a there a surge to $190-$200 would be the next order of business for this spectacular metal.
Sadly, the US government is wasting the precious little time it has left pretending to count and audit its gold… when it should instead be aggressively buying more. There’s almost always a huge opportunity for late-stage empires to get physically smaller and financially bigger… by abandoning their debtor lifestyle and becoming savers focused on gold.
In a nutshell, America could become a giant gold-oriented version of Monaco. With a gold or gold-backed currency and no corporate or income taxes and total bank secrecy, millions of businesses would race to move their residency there. Because of its military might and power of the dollar, global governments would have to embrace this approach too, creating a dramatic surge in real freedom for most citizens of the world.
While the US government stupidly fails to make this needed move, citizens can do it themselves. Rather than being left to rot in fiat, mining stock profits need to be parlayed into supreme money gold.
The CDNX index is a powerful lead indicator of what could lay ahead for all the miners; junior, intermediate, and senior.
This bull flag has a vertical flagpole, which is incredibly positive for future price action.
Junior mine stock investing isn’t for everyone, especially with size, but as this 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!
For a look at the long-term CDNX chart:
A “rocket launch” event appears imminent, especially given the bull flag action occurring on the daily chart. Because the price pattern (inverse H&S) is so large, the bull run should see the CDNX rise to well beyond 2000, and probably beyond 3000.
This is the stunning GDX daily chart. Like gold, a flag-like drift is in play, and it targets a move to the $112-$116 area highs.
Gold, silver, and mining stock investors are living in one of the most exciting times in the history of markets. The death of fiat, debt, and potentially of government itself are all in play, and the only thing left to say, is have a very golden day!
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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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.
