Money Printing Creates Gold Stocks Nirvana Stewart Thomson
April 14, 2020
Another “golden week” is underway, and both the miners and bullion are off to a great start!
Please click here now. Gold bullion ETF purchases are soaring. For the SPDR fund (GLD-NYSE), total tonnage has moved above the key 1000 tonnes marker.
With the Corona virus, here’s where the rubber meets the road: No government has accumulated any savings to deal with this or any other crisis.
That opens the door to significantly higher gold prices.
Please click here now. Double-click to enlarge this fabulous GDX chart.
My guswinger.com swing traders booked solid partial profits yesterday on our latest GDX power trade. We are awaiting an imminent breakout above the key $32 resistance zone.
Please click here now. Double-click to enlarge this buy signal chart for the Dow.
Long before the market crashed, I urged subscribers to prepare to buy Dow 18,300. The low was about 18,213.
To make stock and gold market profits that are retained, investors need to mainly focus on the big support and resistance zones. On this chart, there is also rough broadening formation in play and that’s ominous.
Broadening patterns indicate a market that is… out of control.
The bottom line is that the US stock market can continue to rally (on Fed money printing), but the broadening action is likely to dominate, as it has for the past several years.
More crashes are coming, so more pain for investors is coming.
Why did so many stock market investors get caught flat-footed in the latest crash? Unfortunately, I think most investors were lost in a somewhat pathetic world of worshipping governments and central banks as their saviours.
Sadly, most governments have no savings, and that’s especially true in America, which is an empire that should know better, but doesn’t. The US government never saved money for any crisis.
In good times, the nation’s “Gmen” waste all the money they print, borrow, and extort from citizens. So, when a crisis happens, all the government does is tell grandiose stories about the future, while begging the central bank to print money for them.
In a nutshell… government is pathetic.
Also, investors need to consider the possibility that just as there are gravitational cycles for the sun, moon, and Earth, there can be virus and war cycles.
American involvement in World War Two took place in 1941-1945, almost eighty years ago. Eighty years before that, in 1861-1865, there was the US civil war.
Instead of good times ahead for silly government worshippers, a new and deadly period of war in 2021-2025 could be the unpleasant future that awaits the unprepared citizens of America.
The ominous war cycle fits with the horrific broadening action taking place on the stock market charts.
Next, please click here now. Double-click to enlarge this “work of art” gold chart.
There are beautiful layers of inverse head and shouldering action in play, suggesting a glorious $1975 target price for what I call… the queen of assets, gold bullion!
- Please click here now. Double-click to enlarge this weekly GDXJ chart. Mining stock enthusiasts need to stay focused on the big picture; as gold bullion pushes towards $1975, the virus crisis gets “solved” by money printing. It potentially becomes an even bigger war crisis that is “solved” by even bigger money printing.
Glorious price action lies ahead for the miners. As one crisis morphs into another (war or just significant stagflation), there’s a strong probability that GDXJ takes out the $50 area highs. From there, I’m predicting an immediate rocket blast towards major league resistance at my $63 target zone, and then an assault on the all-time highs near $145!
Apr 14th, 2020
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is a retired Merrill Lynch broker. Stewart writes the Graceland
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