LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Is Sound: Investors Hold Their Ground
By: Stewart Thomson, Graceland Updates

Precious Metals Were the Winners in H1 2020
By: Frank Holmes, US Funds

Coin Shortage Ramps Up War on Cash
By: Stefan Gleason, Money Metals Exchange

H.R. 2559: The Gold Transparency Act Of 2019
By: Dave Kranzler

Stocks becoming dangerous, Gold: breakout holding for now
By: Gary Savage

Precious Metals Update Video: More covid shutdowns, Gold is at a challenging point: $1786 area support
By: Ira Epstein

Asian Metals Market Update: July-14-2020
By: Chintan Karnani, Insignia Consultants

Will the Federal Reserve Cause the Next Riots?
By: Dr. Ron Paul

Rep. Mooney seeks to audit gold intervention, ban federal tax on precious metal coins
By: Chris Powell, GATA

Gold & Silver Seeker Report: This Week in Mining Issue #21 - Financing's Galore, Early Q2 Production Numbers, and Go
By: Chris Marchese, Chief Mining Analyst at


GoldSeek Web

The Days the Music Died

 -- Published: Wednesday, 16 October 2019 | Print  | Disqus 

Gary Christenson, The Deviant Investor

The music died many times in the past. To name a few:

  • 1929 Market crash
  • 1933 President Roosevelt confiscates citizen gold and declares it illegal to own more than a few ounces.
  • 1971 President Nixon “closed the gold window” and severed the last link between the devaluing dollar and gold.
  • 1987 Stock market crash
  • 2000 Stock market and “dot-com” crash
  • 2008 Stock market and housing crash
  • 2019? Stock market and “everything bubble” correction/crash
  • 2020-2025? “Inflate or Die” QE, bond monetization, helicopter dollars etc.


  • Too much credit issued by commercial banks.
  • Excessive debt – government, corporate and individual.
  • Massive deficits: Government spends far more than its revenues and borrows the shortfall.
  • Federal Reserve meddling and policies.
  • Wars and catastrophes.
  • Political decisions that encourage wealth transfer to the financial elite: 1933, 1971 and 2008 decisions come to mind.


  • DAX (German Index) hit its high in January 2018
  • FTSE (UK Index) hit its high in May 2018.
  • Russell 2000 Index hit its high in August 2018.
  • Value Line Index hit its high in August 2018.
  • Transports Index hit its high in September 2018.
  • But the DOW, NASDAQ and S&P 500 hit new highs in July 2019 on weak momentum.

Consider charts of the Transports and the S&P 500 Index.

A close up of a map

Description automatically generated

A close up of a map

Description automatically generated


  • Several broad indexes hit their highs in 2018. Big indexes (DOW etc.) hit momentum peaks in January 2018 and slight new highs in July 2019.
  • Will the DOW, S&P and NASDAQ hit new highs?
  • When $15 trillion of sovereign debt “pays” negative interest rates and promises to repay those debts in devalued currency units (guaranteeing losses), very little is impossible. Yes, new S&P 500 Index highs are possible.

From Fed Chair Powell:

“We’re going to continue to act as appropriate to sustain this expansion.”

He will do whatever is necessary to boost stock prices, keep Wall Street happy, Inflate or Die, and support the current administration.

Next year (2020) could see higher highs in some indexes as a prelude to the November 2020 election. The Elliott Wave people think so. It appears less likely to me.


  • Many stocks and indexes peaked long ago.
  • Several indexes made new highs in July.
  • Momentum is weak but new highs are possible.
  • The risk of a crash is significant, the potential reward from marginally higher prices is low. Why shove capital into high risk, low reward options?


  • $15 trillion in negative yielding bonds… is crazy.
  • Negative yielding bonds show economic weakness and central banker desperation.
  • This bond bubble will not end well. Expect large losses and central banker “Inflate or Die” efforts to keep the bubble inflated.
  • Devaluation is inevitable.

From Bill Bonner: “How Democracy Doomed the Money System.”

“But most of America’s $72 trillion in debt cannot be repaid. It was used to buy consumer items – tuna sandwiches, vacations, automobiles, pills – and to pay for the feds’ many boondoggles – drones, surveillance, and giveaways.” [Also mortgages on inflated prices for housing, stock buybacks, and student loans…]

“And since it was a consumer-based expansion rather than a capital investment boom, there will be no stream of income flowing from it to pay off the debt.”

“Instead, it’s either Inflate or Die. Either inflation and debt increase… or the boom collapses.”


Examine the following four charts of the S&P 500 Index in 1987, 1999 – 2000, 2007, and 2019: Note labels 1 – 6 (not Elliott Wave labels) on the charts. These labels mark important lows and highs in similar patterns.

A close up of a map

Description automatically generated

A close up of a map

Description automatically generated

A close up of a map

Description automatically generated

A close up of a map

Description automatically generated

Using calendar days:

From Point 1 to Point 2: 139 days, 158 days, 124 days, and 126 days.

From Point 2 to Point 3: 43 days, 61 days, 31 days, and 33 days.

From Point 3 to Point 4: 97 days, 54 days, 56 days, and 53 days.

From Point 4 to Point 5: 38 days, 46 days, 61 days, and 55 days.

From Point 5 to Point 6: 63 days, 111 days, 97 days, and ?? days.

If 2019 follows the pattern (it might not), then the S&P could fall into point 6 around late November to the end of December. Or, this time might be different…


  • Peace has arrived in the Middle East. Past hatreds have been forgiven and forgotten.
  • Politicians are truthful in 2019 and will be more honest in 2020.
  • Central bankers care about “Main Street” and the bottom 90% of citizens.
  • Democrats and Republicans are working together to reduce spending and corruption.
  • China, Russia and the U.S. are cooperating for mutual benefit.
  • Many of us swallowed the “blue pill.”
  • Nobody three putts.
  • Tom Brady and the Patriots won only because they were lucky for the past 18 seasons.
  • Presidential candidates will agree in 2020 to a new era of political cooperation and sing “Kumbaya” together on national television.

If you are more comfortable with “red pill” realities, consider protecting your savings and retirement with silver and gold, rather than bubblicious bonds, over-valued stocks and nonsensical political promises.

Read: Silver Prices – The Next Five Years

Read: Gold Prices – The Next Five Years

Miles Franklin deals in real money—gold and silver—and will help you protect savings and retirements. Call 1-800-822-8080.

Gary Christenson

The Deviant Investor

| Digg This Article
 -- Published: Wednesday, 16 October 2019 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of 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 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, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC 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, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.