The Nuances Of a Gold Price Sale Stewart Thomson
Jul 10, 2018
- For thousands of years, alchemists have dreamed of creating gold out of thin air. Arguably, today’s alchemists are gold analysts obsessed with calling “market tops and bottoms”.
- The relentless search for this holy market grail doesn’t build retained gold market wealth. That’s because gold is simply an asset that is either on sale or not on sale.
- It is on sale now.
- Shoppers in a grocery store have no interest in market tops or bottoms for tomatoes. All they want to know is if tomatoes are on sale or not. Investors need to approach gold the same way.
- Please click here now. Double-click to enlarge. From the $1380 high to the recent $1240 area low, gold has given investors a $140/ounce price sale.
- Technical indicators are oversold, and when that happens in July or December, gold can stage enormous rallies that build sustained wealth for enthusiastic gold market shoppers.
- Please click here now. Unfortunately, the Chinese yuan and the Indian rupee have tumbled against the dollar.
- Most of the world’s gold demand comes from China and India, and the price sale that investors see there isn’t as big as it is in dollars.
- While it appears to be basing now, the yuan (renminbi) peaked against the dollar in February at Chinese New Year and so did gold.
- Please click here now. The rupee has also declined against the dollar in 2018.
- The bottom line is that there is a fabulous gold price sale for dollar-oriented investors, a modest one for yuan-oriented investors, and a very tiny one for rupee-oriented investors.
- Please click here now. The good news is that most big bank and FOREX analysts agree that the US dollar is in a long term decline. That’s positive for gold.
- A decline in the euro against the dollar can spur gold buying from Europeans. In crisis situations that buying can become large enough to drive the global gold price higher.
- Trump’s second round of corporate tax cuts will likely only cut the rate from 21% to 20%. That’s very modest US economic stimulus compared to the first cut. That’s more good news for gold.
- For a closer look at the current gold price action, please click here now . Double-click to enlarge. The current pullback can be bought, and if gold reaches $1240 it can be bought more aggressively.
- Please click here now . Double-click to enlarge. There’s an order to market cycles. Bank stocks tend to rally with base metal commodity stocks as the economy transitions from strong growth with modest inflation to fading growth with higher inflation.
- The bank stocks are rallying now, base metal stocks are very strong, and that’s a positive sign for gold stocks.
- Please click here now. Double-click to enlarge this fabulous GDX versus gold chart.
- The technical action of gold stocks versus gold is awesome. It’s arguably the first time since the mid 1960s that gold stocks have mounted a sustained rally against gold while gold declined against the dollar.
- This is what happens when the Western world transitions from low rates and deflation to higher rates and inflation. Gold stocks are beginning a long period of outperformance against bullion, just as they did in the mid 1960s.
- A large ascending triangle is forming on that chart now. All gold stock investor eyes should be focused on the 0.185 price zone.
- A breakout above that price opens the door for an enormous gold stocks rally against both gold and the dollar!
- Please click here now. Double-click to enlarge this GDX versus dollar chart.
- GDX has staged a nice upside breakout from a bull wedge pattern and the expected pullback is now in play. Aggressive investors can buy call options on any dip back into the wedge pattern. Everyone else should be buyers of their favourite individual gold stocks. A powerful upside rally to the $24.86 area highs for GDX appears imminent, with that price zone being only a pitstop on the road to much higher prices!
Jul 10, 2018
email for questions: firstname.lastname@example.org
email to request the free reports: email@example.com
|Tuesday 19th Mar 2019
Special Offer for 321Gold readers: Send an email to firstname.lastname@example.org and I'll send you my free “Golden Seniors!” report. I highlight key senior gold stocks with incredible upside potential that are trading at under $10/share. It’s essentially an opportunity to buy senior producers at junior prices! I include key buy and sell zones for each great stock.
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: