Gold & Silver Stocks: Dare To DreamStewart Thomson
Mar 1, 2016
- The good news for gold continues to flow, like water pouring over Niagara Falls. Please click here now. The SPDR gold fund has seen strong tonnage inflows in 2016, with the fund now holding 777 tons of gold.
- The buy-side fun isn’t limited to gold bars. In America, gold coin sales are experiencing a huge resurgence.
- To view the latest action on that front, please click here now. Clearly, institutional liquidity flows into gold are getting stronger, and more influential bank economists are taking a positive view on the world’s “ultimate asset”.
- Gold bear fundamentalists aren’t quite Dodo birds yet, but I think it’s only a matter of time before that happens.
- From a technical perspective, gold also looks very good. Please click here now. Double-click to enlarge this daily gold chart. The target zone of the triangle formation is the $1320 area.
- Ironically, if the triangle pattern were to fail, that would create an even higher price target for gold. Please click here now. Double-click to enlarge. If gold breaks down from the triangle pattern, it would create a bullish right shoulder of a large inverse head and shoulders bottom pattern.
- The target zone of that pattern is quite high, in the $1432 - $1523 area. What fundamental event could create a break-down from the triangle pattern now, and create that right shoulder?
- For the probable answer, please click here now. Indian jewellers are targeted by the taxation-obsessed government relentlessly, and they are launching strike action today.
- While that’s slightly negative for gold in the short term, I’ve predicted that Chinese investors would be “reinvigorated” by a decent gold price rally, and the current price action is exactly what the golden doctor ordered for that to happen.
- Please click here now. Kitco News notes that UBS economists feel, as I do, that continued strength in the gold price is going to give Chinese investors more confidence about buying gold.
- Please click here now. Influential Societe Generale (SoGen) analyst Robin Bhar also appears to speak quite positively about the actions of Chinese investors.
- While gold stocks may be overbought on some short term charts, they are much closer to being oversold on longer term monthly charts. Please click here now. Double-click to enlarge this long term monthly chart of the Dow.
- Technical indicators like RSI became “overbought” in 1995, in the Dow 4000 area, but the market continued to rise relentlessly for about five more years.
- The growth of China and India is likely a more powerful force for gold now, than the US middle class was for the US stock market in the 1990’s.
- Regardless of how technically overbought they may become, gold, silver, and precious metal stocks can theoretically rise for many years, or even decades, as the growth of the Chindian middle class continues.
- This is especially true in India, where gold is an integral part of the Hindu religion, and the country’s GDP growth rate could hit 10% in the next 24 months.
- I’ve predicted that this will happen, and usher in a global “bull era for gold”. As India’s gold-obsessed citizens lead the world forwards economically, the gold price can rise much like American GDP did in the 1950s.
- Please click here now. Double-click to enlarge this magnificent GDX monthly chart.
- GDX has broken a long term downtrend line, and it’s clear that the technical situation is far from overbought. I believe that Chindian demand will enable GDX to become overbought, and stay that way for many years, regardless of what happens in the West.
- Silver has not performed as well as gold has recently, but that should not be a concern for silver stock investors.
- Please click here now. Double-click to enlarge this weekly SIL chart. This silver stocks ETF has already rallied about 50%, even though silver bullion has barely moved.
- Janet Yellen is very focused on the Phillips Curve, while I think most money managers erroneously believe she is focused on the US stock market. US inflation is already showing signs of ticking higher, and Janet believes that higher inflation will drive GDP higher, basis her Phillips Curve theory.
- If silver stocks have already soared about 50% while silver bullion has barely budged, I’ll ask global silver stock investors to “dare to dream”, and envision a much stronger rally if Janet is successful in her mission, as I’m absolutely sure she will be.
- If US inflation rises even modestly, SIL should reach $50 without much difficulty. In the medium term, a strong rally to key trend lines in the $30 - $32 area for SIL is a realistic scenario, and it’s my target!
Mar 1, 2016
email for questions: email@example.com
email to request the free reports: firstname.lastname@example.org
|Tuesday 26th May 2020
Special Offer for 321Gold readers: Send an email to email@example.com and I'll send you my “ETFs Versus Individual Miners!” free report. I highlight the unique risks and rewards associated with key individual miners and ETFs, so investors can decide whether to own the miners, the ETFS, or both! I include buy/sell points of action for each item.
Updates Subscription Service: Note we are privacy oriented. We accept cheques.
And credit cards thru PayPal only on our website. For your protection
we don't see your credit card information. Only PayPal
|Subscribe via major credit cards
- or make checks payable to: "Stewart Thomson" Mail
to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario
L6H 2M8 / Canada
is a retired Merrill Lynch broker. Stewart writes the Graceland
Updates daily between 4am-7am. They are sent out around 8am. The
newsletter is attractively priced and the format is a unique numbered
point form; giving clarity to each point and saving valuable
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 qualifed 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: