Money Printing Creates Gold Stocks Nirvana Stewart Thomson
April 14, 2020
Gold bullion, the world’s “queen of assets”, has a majestic upside breakout from a large inverse H&S bull continuation pattern.
To view the important price action, please click here now. Is this an “all clear” signal for gold stocks and silver too?
Well, physical metal dealers in Singapore report that silver bullion demand is currently bigger than demand for gold!
Please click here now. Double-click to enlarge this daily silver chart.
Breakout enthusiasts can buy silver now. Value investors already bought when gold traded at $1450 and silver was $12.
Light profit booking can be done at silver $16.50, $17.50, and $19, or as gold trades at $1800 and $1900.
Please click here now. Corona is ravaging America. The government has no savings and there was no effort made to prepare US citizens for germ warfare.
The central bank is printing around $100 billion a day and using it only to pump up financial markets, while New York and many parts of America are becoming a wasteland.
Corona welfare checks for desperate citizens have yet to arrive (and may not arrive until July for many workers supporting large families), while stock market pundits claim all news is “Better than expected!” and is a huge stock market buy signal.
I’m very concerned that the US government has made no effort to build protective bomb shelters and drill the citizens on how to use them. As the government gets backed into a corner by the Corona virus, they may blame external nations and use military aggression as their “solution” to the problem. They belittled the Corona virus when they should have prepared for germ warfare, and now they blame others for their own horrifying incompetence.
America’s government has had lots of fun borrowing money and using it to bully weak nations in faraway lands, while leaving US citizens totally unprepared to manage real crisis and war.
It’s likely only a matter of time before a more formidable opponent decides they have had enough US bullying, and they go on the offensive against America.
The horror of what’s happening now will seem like a walk in the park if that happens.
Please click here now. Money managers were mostly fully invested before the Corona-oriented crash. Are these money managers really what’s driving the stock market higher now, or is it mainly printed money from central banks?
The answer to this question may never be known. What is known is that Robert Mugabe was one of the world’s biggest money printing enthusiasts. As head of Zimbabwe, he lorded over a soaring stock market while the nation wallowed in a horrifying economic depression.
It feels like Western central bankers are copying his playbook today. Since the 2008 crisis trough, the US stock market has been more of a government and central bank “poster boy” than a reflection of the real economy, and now it’s beginning to resemble something even more macabre…
The stock market of Zimbabwe in its darkest hour.
- I’ve urged investors to put some capital into stocks at the Dow 21,700 and Dow 18,300 support zones, and of course that’s been a winning play, but I feel guilt for buying what has become little more than a government poster boy.
- It feels morally wrong to invest in the stock market while Corona lays waste to US citizens. The government’s pathetic actions only make the situation worse.
- Regardless, please click here now. Double-click to enlarge the daily GDX chart.
- There is a trend line breakout in play, and the major breakout for gold bullion suggests higher prices are coming for GDX and individual gold stocks.
- Please click here now. Double-click to enlarge this daily GOAU chart.
- GOAU also has a trend line breakout in play. The $11.80 price area can be used for risk management by stoploss enthusiasts.
- Investors can use a stoploss on just a portion of their position, and hold the rest for much higher prices in the years ahead, years that will be themed on US dollar money printing rampant enough to make Robert Mugabe smile!
Apr 7, 2020
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