To 321gold home page

Home   Links   Editorials

Gold, Fed Speak, & The Inflation Trade

Stewart Thomson

June 15, 2021

  1. Socialism’s biggest pillar, arguably, is fiat money. It is embraced by most political parties, even those claiming to be “right wing” or “capitalist”.

  2. Please click here now. Double-click to enlarge this long-term “train wreck” chart of the dollar versus gold.

  3. The fiat-oriented end of the American empire is as inevitable as that of previous empires… and perhaps more so given the technology that allows fiat money to be printed electronically.

  4. Please click here now. Double-click to enlarge. In the medium-term, the dollar is staging what looks to be a very modest right shoulder rally in a big H&S top pattern.

  5. Investors are told that a Fed “taper” is negative for gold and great news for the US empire of debt and fiat. Unfortunately, the actual situation appears to be dire.

  6. To understand why, please click here now. The world’s greatest fund managers are losing all confidence in the Fed’s ability to keep the fiat ship afloat.

  7. Investors may be about to relive a “super-sized” 1970s life, with rising rates causing an exodus from the dollar.

  8. Then, the dollar collapsed against gold as rates surged but the US government was able to stave off hyperinflation by forcing all oil to be sold in dollars.

  9. Now, America is an oil exporter and electric cars will make gas cars obsolete. So, if the world loses confidence in “Fed Speak”, all that is left to hold US Humpty Dumpty fiat on the wall is probably… war. The bottom line:

  10. Gold is money, and the time to stack it is now. Whether the investor’s stack is coins, bars, or jewellery does not matter.

  11. India’s thirst for gold is insatiable. I refer to Indian citizens as the world’s “titans of ton”. The Corona numbers there are dropping again. It’s only a matter of time (and not much) before Indian gold demand skyrockets again. Elsewhere, China just imported 100+ tons in May and US mint coin sales are soaring.

  12. A global stampede out of fiat and into “private money” gold, silver, crypto, and commodities seems imminent.

  13. It will happen when the current transitory wave of inflation gets replaced with one that is much bigger.

  14. My suggestion for stock market investors is to move to a short-term approach. That will help minimize the risk that a new inflationary wave crushes their holdings. Some long-term gains can be booked, with partial proceeds going into gold and silver miners.

  15. Please click here now. As this Bloomberg chart shows, the miners have become “cash cows on steroids”.

  16. Please click here now. Double-click to enlarge this GOAU daily chart. Investors who followed my suggested path have booked solid profits after buying in November and selling just a month later.

  17. I urged investors to buy in March again, and to sell more recently. The profits booked were stellar.

  18. The current “main stage” play is to hold core positions. Short-term traders can buy the dips, using the lows around $21.25, $20.50, and $19.85 for stoplosses.

  19. Please click here now. Double-click to enlarge. On the daily chart for GOAU, the 20,50 moving average series can be helpful.

  20. The latest buy signal is intact, and a dip to the red 50DMA line could be a good entry point for mine stock enthusiasts.

  21. What about GDX… do the moving averages work as well as they do for GOAU? Please click here now. Double-click to enlarge. The technical action for GDX is not as crisp and clean as for GOAU, but it’s still incredibly positive.

  22. A focus on gold bullion support zones for mine stock buying should be an investor’s “magic marker”.

  23. Fed Speak” day is tomorrow. If the Fed downplays the horrifying fire that is engulfing the government’s fiat money system, legendary investors like Paul Tudor are ready to go all in on the inflation trade.

  24. Now could be the time, for gold bugs to get ready too!



June 15, 2021
Stewart Thomson
Graceland Updates
email for questions:
email to request the free reports:

Tuesday 6th Dec 2022
Special Offer for 321Gold readers
: Send an email to and I'll send you my free “GDXJ: For Golden Play!” report. I highlight eight GDXJ component stocks that eager gold bugs can buy on the current dip, with key tactics to manage risk and lock in gains!

Graceland 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 does.

Subscribe via major credit cards at Graceland Updates - or make checks payable to: "Stewart Thomson" Mail to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 / Canada

Stewart Thomson 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 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 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:

Are You Prepared?

321gold Ltd