Rally Time For Gold

President of Graceland Investment Management
May 23, 2023

Most investors remember the Ben Bernanke era of falling rates and the rising price of gold.  

When there’s deflation, citizens need to hold lots of gold. When there’s inflation… they need even more.

Double-click to enlarge. A big bull flag appears to be nearing completion.

The target is at least 6%, 8% is possible… and that’s just a medium-term target. US rates are likely to rise for the next several decades, and maybe even longer.

In the Bernanke era of QE, money managers bought stocks and bonds for price appreciation. Low rates encouraged more debt.  

Now, rates going to 8% could ruin these markets and put both companies and governments into a new era of rolling defaults.

The global de-dollarization tidal wave is an issue separate from the US debt problem, but it will make the debt harder to expand and service, since there will be less demand for dollars.  

Jamie Dimon approaches the market from an insider/fundamentalist view, and he has the same 6% minimum target for the next hiking phase that I do.

What about the stock market?

Double-click to enlarge. On the one hand, a debt ceiling default or near-default likely sends the stock market back down towards its 30,000 area lows, basis the Dow.

On the other hand, the default is likely to be followed by central bank action (money printing) that is celebrated by money managers.

Regardless, investors need to be prepared for decades of debt crises, even if the red and blue fiat obsessed “Gmen” get rid of their ceiling.

Getting rid of the ceiling won’t get rid of endless debates about the government debts and deficits. The debt problem will only get worse as the ceiling gets raised or discarded. The bottom line:

Got gold?

Double-click to enlarge. Note the key $1960 support zone.

It’s likely that the world’s “Queen of Money” is going to make a low this week and begin a very large rally related to the debt ceiling comedy show.

For a closer look at the action:

There’s a double bottom in play. It could morph into an inverse H&S bottom.

Regardless, a rally looks imminent. That’s the good news. The bad news is that it’s likely a big rally within the reaction from $2080… a reaction that isn’t over. 

Gold markets are going to have some big swings before gold roars through $2080 and surges to $2400. 

To play these swings, my swing trade newsletter offers great value at $269/3mths. Given the wild market action and the solid tactics we use with items like GDXU, JNUG, DUST, OILU, SQQQ, etc, I’m doing a $249/4mths special offer this week. Click this link or send me an email if you want the offer, and I’ll get you onboard! Thank-you.

Long term investors should be more patient.

Double-click to enlarge this GDX weekly chart. Oscillators are still too high for long-term investors to take action…

And there’s just not much of a price sale in comparison to the big ones of the past. 

Long-term investors should focus on the $1900 area for gold. That’s my price of choice for fresh gold and silver stock buys!

Double-click to enlarge this GDX daily chart. The price is reacting normally from the huge $2080 resistance zone for gold.

A mining stock rally looks imminent. Investors who have no miners should of course buy a grub stake now. Investors can just hold their ground, and swing trade enthusiasts may get the rally they deserve!

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.

Thanks!

Cheers

St

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?

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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.


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