To 321gold home page

Home   Links   Editorials

Taking Gold Candy From A Fiat Baby

Stewart Thomson

Dec 7, 2021

  1. Britain lost the Battle of Yorktown in 1781. After 80 years, there was the US civil war, in 1861. About 80 years later, on December 7, 1941, Japan attacked Pearl Harbour. 

  2. Today, December 7, 2021, is another 80year anniversary for America. Does more conflict lie ahead?

  3. Well, the US government and central bank still refuse to abandon their vile fiat money system and replace it with gold. So, rampant debt growth, corruption, and loss of citizen freedom continues.

  4. Socialism’s greatest pillar always has been, and always will be, fiat money.

  5. Please click here now: Double-click to enlarge this long-term dollar versus gold chart. A move through $1923 would fully activate the bear flag pattern.

  6. That would usher in the next leg down for the nation’s fiat “poster boy”. It’s a morbid journey, with a destination that looks a lot like Hades.

  7. Please click here now: Leveraged homeowners took a Corona-oriented hit, but a scenario of rising interest rates would be much worse.

  8. On that note, please click here now: Double-click to enlarge this long-term T-bond chart. A huge top pattern is likely forming, but an inflation-related meltdown is likely still 4-5 years away.

  9. Leveraged homeowners and mortgage investors should be able to weather the early part of a rising rate storm, but what about the stock market?

  10. Please click here now: Double-click to enlarge. The current bull market for US stocks began in 2009. The technical and fundamental drivers of the market are clearly deteriorating.

  11. The Fed is potentially entering an inflation-oriented tightening cycle and the Dow is overbought. Note how far above the 60month moving average the Dow is, with the MACD indicator rolling over ominously.

  12. It’s a classic three-stage bull run, and in 2022… it’s probably done!

  13. Please click here now: Double-click to enlarge this important Dow versus gold chart. I call this the “Time Chart”. Here’s why:

  14. For the past fifty years, the Dow has remained below its 1971 highs for about 80% of the time. The only period when it rose above its 1971 highs versus gold, was during the silly speculative bubble in the 1990s!

  15. Also, stock market investors generally sell stock regularly, and pay tax on their gains. The number of Western investors who have held the Dow (or any stock market) for decades is very small, whereas the number of Asian investors who calmly hold gold for the long term is enormous. The bottom line:

  16. The stock market can rally higher, but for investors, there’s now far more real risk than potential reward.

  17. Gold bugs envision a day where money managers sell the stock market and buy their miners. That day came in the 1970s and it’s coming again, but not until the money managers see the Fed hike rates repeatedly… and those hikes fail to stop the rise of inflation.

  18. Still, the miners are becoming a more solid investment than the stock market, and many of them are free cash flow cows.

  19. Please click here now: Double-click to enlarge this daily gold chart. My 14,7,7 Stochastics oscillator is more oversold now than at any point in the past two years!

  20. Next, please click here now: Double-click to enlarge. With India and China recovering from Corona, citizen demand for gold is set to recover too.

  21. That’s going to help gold push towards its all-time highs, even if there’s a pause in the US inflation theme.

  22. Also, in 2015 most gold bugs were nervous (or in denial) about a Fed rate hike from Janet Yellen. At that time, I predicted a hike… and a massive gold price rally! That’s exactly what happened and when Jay Powell tapers his ludicrous QE program, an even more important gold price rally should occur.

  23. Please click here now: Double-click to enlarge this enticing GDX daily chart. Note the incredibly positive positioning of numerous oscillators.

  24. I don’t think I should say that making money in gold stocks right now is as easy as taking candy from a fiat baby… or should I? It likely is that easy, and I invite gold mining stock enthusiasts around the world to consider joining me with some modest-size buys!



December 7, 2021
Stewart Thomson
Graceland Updates
email for questions:
email to request the free reports:

Tuesday 26th Sep 2023
Special Offer for 321Gold readers
: Send an email to and I'll send you my free “Rates Blowoff & CDNX Rocket Time!” report. I highlight key CDNX miners set to surge, with actionable buy and sell tactics for investors!

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