A Government Disease & A Golden Cure

Amateur gold investors in the West are terrified of higher rates because they erroneously treat the Fed as if it is the bond market.  

In the big picture, the Fed is about as useful to the average US citizen as a soup kitchen is to the richest residents of Monaco.

Ironically, incredibly high rates (and accompanying inflation) are the only true catalyst for a parabolic move in the price of gold.

Serious Western investors need to consider a scenario of 15% rates and $15,000 gold, with rates put there not by the Fed, but by the free market.

Venezuela’s government didn’t plan on raising rates to 50% but 500% inflation forced them to do it. The exact same scenario is beginning to play out in America and… 

The market is vastly underpricing the risk of default; a move to just 10% would take US government interest payments to about 80% of revenues.

In a nutshell, QE worked when there was deflation, and mainly for financial markets rather than for the average US citizen.  

Now, QE would be an inflationary powder keg for citizens who already feel hammered by the modest inflation that has recently enveloped them… and intensified.

In ancient Rome, instead of prepping for the coming mayhem with gold, the “sheeple” watched gladiators gore each other to death.

Has there been progress? Sadly, no. In late-stage empire America today, the sheeple watch steroid-infused UFC cavemen on the government’s front lawn try to give each other brain damage… while they gleefully refuse to buy any gold.

The story of gold versus fiat is the story of healthy and happy individuals versus deranged governments stricken with overspending cancer and debt drugs addiction.  

For a look at a glorious breakout chart for gold:

Today’s breakout appears to be significant.

I’ve urged investors to take the price sale into the big round number zone of $4000 seriously:

It’s roughly a 30% price sale and these kinds of buy-side opportunities are rare. The entire $4100-$3900 area is best viewed as a “buy zone of champions”.

The downtrend line has been penetrated and a surge to another key trend line at about $4400 appears likely.

To view the weekly chart:

Numerous scenarios are plausible, and this is certainly one of them.

It’s unknown if gold $9000 will occur with rates at 9%, but that’s also realistic, if inflation is higher. Note that the Venezuelan and Zimbabwe governments survived high rates… because inflation was higher. Much higher.

A daily focus on the big picture is critical for investors as inflation, war, a wildly overvalued stock market, horrific debt, 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 special offer 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!

What about silver? 

This is the awesome daily chart. For silver bugs who bought into the zone basis the arrival of gold at $4100-$3900… it’s time to rejoice.  

This mighty metal looks set to make a fabulous beeline-style move to $80, and perhaps to $90. 

The miners are also coming to life. For a look at a key index:

For the CDNX index, all technical lights are now green. 

This is the stunning GDX buy zones chart. Gold stock investors can expect to make 20%+ gains very quickly from key buy zones for gold and the Dow.

Now, there have been three waves down for gold, silver, and the miners. A much bigger rally is likely from here, and it could see GDX challenge or even exceed the all-time highs. Value players already bought the price weakness into the $4100-$3900 area. Momentum-oriented investor now also can buy. 

The bottom line is obvious: Government has always been the world’s most despicable disease… and glorious gold is the greatest cure!

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.

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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:

Are You Prepared?

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