Recognition And Adjustment

June 25, 2019

While it may seem repetitive to do so, it's time to remind you again of where we are and where we're headed. For your part, you can either continue to whine and complain about the central bank delusions of 2013-2018 or you can climb aboard and have some fun... all while protecting yourself and your family from the monetary madness that is coming over the horizon.

Over the past few days, it has suddenly become fashionable to claim that "you saw this coming" and that "you're long gold". Hey, fine. Knock yourself out. But this rally is not just some technical breakout. Instead, see these four posts in order to grasp the how and why:

In short, COMEX gold is rallying and breaking out of a six-year price range, in large part due to an imminent reversal of Fed policy. As recently as last November, every mainstream analyst assured you that The Fed was going to hike the fed funds rate at least three times in 2019. As The Fed is now forecast to instead cut three times before the end of the year, many institutional and hedge fund money managers have been caught unprepared. What you are seeing at present is these characters trying to play catch up by purchasing any kind of gold exposure they can find.

But it's more than that.

The investment world is finally coming to terms with what they've suspected all along. Namely, that The Fed, the ECB, the BoJ, the BoE, the SNB, and all the rest are simply flying by the seats of their pants. They have no grand plan. They've never had one. Instead, they've just been faking it since 2009 and stumbling along in the hope of maintaining the illusion that all is well and that they, your Financial Masters, have everything under control.

Well, they don't. And 2019 is all about the growing recognition of this basic premise. As an example, note again this tweet from mainstream television reporter Carl Quintanilla. Does this sound like someone who continues to believe the Fed's nonsense?

So when putting all of this together, perhaps you'll understand that, as you see the price of COMEX gold breaking out of its six-year trading range, it's not the end of the move... it's the beginning!

But, again, it's up to you to decide what to do with this foreknowledge. Do you recognize what's happening and make your move, or do you continue to wallow in your pettiness and anger over the bear market that interrupted things from 2013-2015? 

As an example, consider Kirkland Lake. Did you heed Eric Sprott's words of wisdom and purchase KL when, in summer 2017, he first began to mention it during the Sprott Money Weekly Wrap-up segments? Or did you just scoff and turn away? It has only moved up more than 5X since then, so it's not like you missed anything... 

And the same can now be said of the entire precious metals and mining sector. You can ignore what's happening, or you can participate. It's up to you.

Of course, the COMEX precious metals will never move straight up and never without Bank interference. This bull market will undoubtedly unfold just as the past one did: with one step back for every two steps forward. Momentum will ebb and flow while the CoT reports will get heavy and due for occasional "washes".

But what you're about to see is something like what we saw in the run from 2009 through 2011. There will be rallies and pullbacks but with a series of higher price lows in the process. This pattern is what typically defines bull markets…and it will do so again in the months ahead. 

In conclusion, now is the time to prepare for what's next. You can look to profit and make some additional fiat, or you can simply begin a new stack of physical precious metal. Just do something. Don't dilly, dally, dicker, and doubt.

And, of course, acquisition of physical gold and silver is easy... you can even hold it in your IRA! You can store it at a trusted gold bullion storage company or in your own, personal safe. You can hold it in gold bullion coins or silver bullion bars. Take your pick. Just be sure that you that you buy some or add to your existing stack before price moves higher and away, leaving you to flail and chase after it. 

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

Craig Hemke

Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

With gold stolen by Conquistador Francisco Pizarro from the Inca Empire in 1532, Spain financed its conquest of Europe.