first majestic silver

Gold & Silver: Is It Time To Buy?

President of Graceland Investment Management
May 30, 2023

The gold market reaction continues, and the daily closing price chart does a good job of highlighting key buy zones for investors.

Double-click to enlarge. It’s clear that $1950, $1920, and $1900 are zones for action.

In the big picture, the economic rise of the citizens of China is a major catalyst for higher prices.

The same is true for the citizens of India.

In the medium term, it’s all about rates. American interest rates. 

Double-click to enlarge. This chart highlights the gold price above the interest rate for the ten-year bond.

While gold can rally when rates rise, inflation must be surging for that to happen… and that’s simply not the case today.  

The good news is that most of the interest rate rallies last for only 1-2months, and the current one is long in the tooth. The Stochastics oscillator (14,7,7 series) is looking toppy as well.

The Fed-watched PCE rose slightly to 4.70%, but that’s not likely enough to stop a pause in rate hikes from beginning in June.

The only question is whether there’s one more hike at the June 14 Fed meet, or the pause begins then.

Double-click to enlarge this short-term oil chart. Huge rallies in oil create big spikes in inflation… and rallies in gold.

But gold is the “ultimate asset”; a falling oil price can create a dovish Fed, which is also good for gold.

Right now, oil looks vulnerable to a fresh decline. The vulnerability may be caused by a delay in implementing Russian oil supply cuts that were part of the latest OPEC agreement.

It could also be related to “less recovery than expected” in China and a possible US recession.  

Regardless, a big oil price rally or a decent decline are both positive drivers for gold! 

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 “super special” that investors can use to get in on the action, or to extend their existing subscription. Click this link to get the offer or send me an email and I’ll get you a payment link. Thanks!

What about silver? 

Double-click to enlarge this enticing daily chart for “Prince Hi Ho”.

With gold looking decent at $1950 support, silver could be poised to stage quite a violent rally.

Double-click to enlarge. Unfortunately, the silver stocks haven’t fared as well as silver itself.

Still, a rally in silver should see the miners rally by 10% or more, and do it quickly. Aggressive investors can buy now, while those who are more conservative may want to buy only if gold trades at $1920 or $1900.

Double-click to enlarge this GDX chart. It looks more perky than SIL, and that could be because silver stocks have an industrial component, while gold stocks are simply miners of the ultimate safe haven asset.

Tactics? Aggressive players need to take action right now. GDX could surge 10% higher in just weeks or even days!

Conservative investors should wait for gold to experience a deeper dip to $1920-$1900. That may not happen, but if it does it could put GDX at about $27, and from there a massive rally would be a near-certainty.

Double-click to enlarge. Some investors prefer GOAU to GDX. I like both, but then again, I like anything involving gold!  

For GOAU, momentum players should watch for a bullish cross of my 14,7,7 Stochastics oscillator that sees the lead line push over the 20 zone. Gold market reactions are never fun, especially for those invested in the miners, but the rallies that inevitably follow always turn that modest pain into the greatest joy!

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?

********

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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