Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Roughly 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 2 23 2018
By: Ira Epstein

Unintended Consequences, Part 1: Bigger Deficits = Higher Interest Rates =…Many Bad Things
By: John Rubino

A Roman lesson on inflation
By: Alasdair Macleod

COT Gold, Silver and US Dollar Index Report - February 23, 2018
By: GoldSeek.com

One Belt, One Road, One Direction for Precious Metals
By: David Smith

How global growth and infrastructure are driving commodities
By: Richard (Rick) Mills

Gold’s Curious Sentiment
By: Adam Hamilton, CPA

Dow Jones Tanks As Silver Market Price Bottoming
By: Steve St. Angelo

GoldSeek Radio Nugget: Andy Schectman and Chris Waltzek
By: radio.GoldSeek.com

 
Search

GoldSeek Web

 
Gold Stocks: An Inflationary Money Train


 -- Published: Tuesday, 30 January 2018 | Print  | Disqus 

Graceland Updates

By Stewart Thomson

 

1.    Technically and fundamentally, gold is poised to resume its magnificent rally that is taking investors into what I call a “bull era”.

2.    The next FOMC meeting announcement is tomorrow.  I expect the Fed to strongly signal more rate hikes and ramped up quantitative easing.  There’s an outside chance that bank deregulation is addressed, but that’s likely going to happen in the next meeting.

3.    Regardless, everything the Fed is doing is positive for inflation, negative for government bonds, and negative for the dollar.

4.    Please click here now.  Nothing is more terrifying to institutional bond market analysts than the prospect of significant inflation.

5.    The US government is on the ropes.  Rates are rising, QT is creating bond market liquidation, and wages are starting to surge.  The inability of the US government to finance itself in an inflationary environment means rate hikes and QT are negative for both the bond market and the dollar.

6.    Please click here now. Double-click to enlarge this key short term gold chart.

7.    Even though gold has rallied more than $100 an ounce in a very short time frame, the pullback action is very positive.  It’s taking the shape of a small positive wedge formation. Solid Chinese New Year demand is likely behind the positive nature of this soft pullback.  Global gold investors should be buyers at $1328, $1310, and $1300, with a bigger focus on gold stocks than bullion. 

8.    During deflationary times, bullion is the leader.   During the inflationary times that are beginning now, mining stocks are poised to dramatically outperform bullion.

9.    Global growth with inflation and the end for the great global bond market should create at least a decade of gold stock outperformance against gold.  These stocks are essentially poised to enter a period of growth much like Main Street America experienced in the 1950s.

10. While all the current news is very positive for gold market investors, the best news of all may be coming on Thursday.  Please click here now.  On Thursday, India’s national budget is announced and a duty cut may finally happen!

11. Gold’s uptrend against US government fiat ended in 2011 – 2012 as India began increasing the import duty aggressively.  This essentially put millions of jewellery workers on the bread line and shuttered hundreds of thousands of small jewellery shops.

12. The bottom line is that Indian government duty hikes basically nuked Western gold mining stock enthusiasts and put the survivors in a horrifying gulag. 

13. For the past several years, jewellers have begged the government to begin reducing the duty.  Unfortunately, the government has shown no interest in announcing even a tiny cut. 

14. Until now.  While the commerce department has called for a duty cut for years, this is first time the all-powerful finance department has addressed the issue in a positive way.  So, a cut on Thursday is not a “done deal”, but the odds of it happening are now vastly higher than at any time since the import duty peaked at 10% in 2013.

15. Jewellers and dealers are not buying gold in any size now, because they are anticipating the government will finally give them a cut.  That’s created some gold price softness over the past week.  I’ve suggested that a duty cut could be the catalyst that blasts gold over the $1370 area highs.  In turn, that would usher in the start of a rally to massive resistance at $1500. 

16. For gold, a duty cut in India has truly gargantuan ramifications.  It is the equivalent of a corporate tax cut in America.  It restores confidence amongst citizens and shows that the government understands not just sticks, but carrots.  When citizens feel good they are more productive.  GDP grows, bringing the government more tax revenues.  Thursday could be a truly epic win-win day for gold and all its global stakeholders.  Are investors prepared?

17. Please click here now. Institutional money managers are starting to see the myriad of inflationary lights flashing that I predicted were coming.

18. Money velocity is starting to rise.  The upturn is subtle, but it’s there!  As Powell takes over the Fed and ramps up QT, I expect money velocity to surge aggressively from the 60-year lows that it sits at now.  As this happens, gold stocks should essentially “run rickshaw” over bullion.

19. Also, key Chinese gold mining stocks that I use (and own) as key lead indicators for Western miners are staging what can only be described as massive long term chart breakouts.

20. Please click here now. Double-click to enlarge this GDX chart.

21. In the summer of 2017, I outlined the $23 - $18 price zone as a key buying area for all gold stock enthusiasts.  Investors who took my recommendation are looking good now.

22. Note the return line that I’ve highlighted on the chart.  The price is almost there now.  Solid rallies often begin from these technical return lines.

23. Chinese “Golden Week” holidays begin around Valentine’s Day.  That’s still two weeks away.  Gold markets close for a week, and the price usually softens.  The jobs report is this Friday.  Gold typically rallies in the days following the report.  A duty cut, gold-positive statements from the Fed, and post jobs report market strength could see GDX reach my $25 - $26 target by Valentine’s Day. 

24. From there a significant market correction would be expected, followed by a major surge to multi-year highs.  Please click here now. Double-click to enlarge this GDX weekly chart.  In 2018, GDX should surge out of the significant symmetrical triangle that I’ve highlighted.  With powerful institutions buying, it should easily reach my $30 - $32 target zone.  Gold stocks investors are basically sitting on an inflation-themed money train that the Fed is going to turbocharge with rate hikes, QT, and bank deregulation.  All aboard!

 

Thanks

Cheers

St  

 

Stewart Thomson 

Graceland Updates

 

Note: We are privacy oriented.  We accept cheques, credit card, and if needed, PayPal.

 

Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.

 

https://www.gracelandupdates.com  

https://gracelandjuniors.com    

www.guswinger.com  

 

 

Email:

stewart@gracelandupdates.com  

stewart@gracelandjuniors.com 

stewart@guswinger.com  

 

 

Rate Sheet (us funds):

Lifetime: $999

2yr:  $299     (over 500 issues)

1yr:  $199     (over 250 issues)

6 mths: $129 (over 125 issues)

 

To pay by credit card/paypal, please click this link:

https://gracelandupdates.com/subscribe-pp/

To pay by cheque, make cheque 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-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of 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 qualified 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?

 

 


| Digg This Article
 -- Published: Tuesday, 30 January 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.