Gold, War & A Key Zone To Buy
Whether it was the Afghanistan war of 1980, the Ukraine war of 2022, or one of many other examples, the fact of the disturbing matter is that the beginning days of wars between governments tend to mark short-term peaks… for the fiat price of gold.
Clearly, a new war (or at least a major skirmish that could morph into a war) is here.
For a look at the gold price action:
This is a fantastic PAXG gold price chart from Binance.
As the US government attacked the Iranian government on Saturday morning, (using more debt and fiat extorted from US citizens to do it), the gold price reached my significant profit booking zone of $5600.
Sadly, it appears that none of the government officials from either side volunteered to fight in their war, while eagerly ordering others to partake in the macabre festivities.
Conspiracy buffs note that the war has conveniently ended mainstream media’s obsession with the Epstein files.
Regardless, for a closer look at the price action:
This is a fascinating hourly chart. A massive ascending triangle is in play…
And it suggests a spectacular rally to $6600 will commence soon.
Tactics? The $5100 area is a big zone to buy. I’m an eager buyer there… because a person’s financial life is ultimately all about getting more gold!
What about the somewhat safe haven of the fiat bugs, the US dollar?
There have been only four rallies (of minor significance, really) of fiat against gold over the past 55 years.
A fifth one will eventually occur, but perhaps not until gold is above $6000. For the average investor, a mix of 30% gold bullion, 30% fiat, and 30% miners/silver bullion could be ideal.
Oil? Because the Hormuz chokepoint is now choked, oil could rise to $100 if the war ends quickly, or surge to $200-$250 if it becomes a quagmire.
For a look at a key oil price chart"
There’s a large but loose inverse H&S pattern in play, targeting the $100-$147 area.
Friday’s producer price inflation report was a disaster (coming in at about 10% annualized). The oil price rise related to the war could see the PPI spike to 15% in the next reporting period.
This is the inflation-adjusted PE ratio chart for the SP500. It looks like the death knell is finally sounding for the ridiculously overvalued US stock market.
This market is used by the government as a “poster boy” for the economy and to get election funding from rich investors.
A stock market collapse would be disastrous for debt-soaked and fiat-themed governments around the world.
For further insight into this interesting matter:
A move under 553 for the ADL (advance/decline line) for the Dow and a close under 19,000 for the Dow Transports would be an ominous development and one that is suddenly highly likely to occur.
What about the miners?
This is the fabulous CDNX daily chart. The entire 1100-800 zone is best described as… the greatest buy zone in the history of markets.
At $5100 gold and $80 silver, the producers are cash cows and the explorers have dirt-cheap costs too.
This is the weekly CDNX chart. The big investor risk today is being left out of the market. A pause is possible and investors should hold some fiat cash to manage the emotional swings if that pause occurs, but higher price glory is near!
Clearly, 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!
Here's another historic chart, GDX priced in supreme money gold!
Many gullible gold bugs were fooled into selling their holdings during previous dips in the gold price. May 2006, October 2008, and October 2023 are three such examples. Thanks to the rise of three billion gold bugs in China and India, Western bugs are now a stronger breed, and this week’s little sell-off is now correctly viewed as a gift… for gold bull era enthusiasts around the world!
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.
