Gold & stock market: key tactics now

  1. To view the US government’s current report card. The government saved nothing to prepare for any type of crisis, and the result of that failure is obvious.
  2. Double-click to enlarge this important weekly gold chart.
  3. As horrifying as the failure-to-save actions of the government are, I’ve argued that most of the Corona crisis debt is factored into the gold price.
  4. A consolidation of the enormous rally could see gold pull back to the key weekly chart high at $1788, or even to the low at $1671.
  5. From there, gold should rise above the $2000 marker in a more permanent way.
  6. The US government has no intention of creating a piggy bank to manage any future crisis, but they are not alone:
  7. “This will not be the last pandemic… but when the next pandemic comes, the world must be ready, more ready than it was this time.” – World Health Organization (WHO) Director-General Ghebreyesus, Sep 7, 2020.
  8. The WHO wants more investment into health, but the unfortunate reality is that the next crisis (health, markets, or war) can’t be predicted very well, so the best preparation for crisis is always a savings program.
  9. Whether it is government, central banks, or health organizations, what they all have in common is a refusal to make saving money a cornerstone of crisis preparation. 
  10. This is one of the many reasons why gold will never stop rising against fiat over time.
  11. Double-click to enlarge this US stock market chart.
  12. The 27,500 area is a decent support zone.  If it fails, a significant decline is possible, but investors know the government supports what I call stock market socialism.
  13. If the market crashes, the Fed will immediately print vast sums of money and use it to support stock and government bond markets.  This, while many senior citizens and unemployed workers are still waiting to get their first Corona relief check!
  14. Double-click to enlarge.  Each recent stock market meltdown has been caused by the government failing at war. 
  15. The trade war failed, until the Fed stopped the market from crashing with its printing press.  The virus war was also a financial disaster, until the Fed stepped in.
  16.    Each bout of money printing that excludes pensioners and the working class widens the wealth gap.  The poorer citizens are becoming incredibly angry.
  17. It’s only a matter of time before printing money only to save the stock market and the government creates a civil war… unless a lot of that money starts going to Main Street.
  18. If it goes to Main Street, as I’m predicting it will, significant inflation will develop.  Money managers will flock to the metals and the miners.
  19. As noted, patience is required.  That’s because most of the government’s failure in the Corona crisis is factored into the gold price.  Lower prices in the short term are as likely as higher ones.
  20. Double-click to enlarge this SQQQ chart.  The SQQQ is a leveraged bear bet on Nasdaq stocks, and it’s a gargantuan cash cow right now for my subscribers.
  21. The current stock market smash is only a preview of the macabre action that lies ahead.  I believe the 2021-2025 period is going to offer the greatest shorting opportunities in the history of the US stock market. 
  22. The only winners of the upcoming US election will be more debt and more citizen versus citizen hatred.  As the madness continues, the stock market could fall much like it did in 1929.
  23. Double-click to enlarge this SIL chart.  A fresh higher high is in play, and I’ll note that the price of silver is unchanged as I write this sentence, while gold is down about $15.
  24. Silver bullion and silver stocks are the strongest sector of the precious metals asset class right now, and if investors don’t have a position, the current market softness offers a solid opportunity to get onboard!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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