Oil prices stay elevated as Iran supply fears overshadow Russia measures
The three pillars of governments around the world are debt, fiat, and extortion. National security (debt-funded) and critical minerals are the new buzzwords spouted by the governments and worshipped by the “sheeple”.
Personal prep for a virus crisis is “gone with the corona wind”. Coca leaf tea and CBD oil are deemed far more dangerous than deadly fast food hamburgers and processed cheese drugs, the latter of which have ruined the lives of hundreds of millions of global citizens and are promoted maniacally on TV.
Draft dodger presidents start wars but refuse to fight in them and back up their “tough guy” routines with nothing but more debt, fiat, and extortion. In Iran, fake Ayatollahs pray to their machine guns and internet blackouts instead of to their God.
In Venezuela, an evil election hater, drug dealer, and citizen starvation specialist is suddenly deemed to provide great stability for the millions of citizens she eagerly ruined… as long as she doesn’t send her drugs to America and provides oil (with huge kickbacks for herself?) to her new partners in crime.
In a geopolitical nutshell: global governments are racing to announce everything “big” except… a big focus on savings based on silver and gold.
Billions of Chindians (and a few savvy Westerners) have these savings plans in place, and for them the childish antics of the world’s governments are mostly less worrisome than a fly.
Gold is the money of “citizen kings”. While US fiat is technically due for its fifth pathetic rally against gold in 50 years, that doesn’t mean it has to occur now, and when it does…
Gold-themed savers should be ready to pounce and get more gold (and more silver too)!
The weekly chart. Technically, gold is overbought but it’s also beginning to act exactly like the stock market did in 1995:
RSI and Stochastics oscillators are bottoming in the momentum zone of 50 and then rising above 70 and staying there for extended periods of time.
The actions of debt-funded, fiat-obsessed, and war mongering government extortionists border on madness, and it’s why legendary gold money experts like Pierre Lassonde are targeting prices to surge to close to $20,000 in the coming years.
Some profits can be booked (up to 30% in most cases), but not to call fiat price tops. The fiat cash can be put back to work on the next big price sale… a sale that likely ends well above where the price of gold is now.
Mentally, any price sale can be demoralizing and an investor with no dry fiat powder will have a hard time buying more gold, silver, and miners when the time to do so arrives. That’s the sole purpose of booking partial fiat money profits now.
The fundamentals in favour of gold are “through the roof”. US “Gmen” claim that attacking NATO allies in Greenland is an option that is on the table. The blowback from that statement alone, let alone an actual war, could potentially drive gold another $2000/oz higher against fiat. If there’s an actual war, that $2000 surge could occur… in a single day.
The horrifying Shiller (CAPE) ratio chart. It’s the inflation-adjusted PE ratio of the SP500.
If US Gmen continue to push their war-humbled Euro allies with these extortionist tariff taxes while giggling that war is an on the table option, the blowback won’t be so humble. A breaking point will be hit, and Euro governments and institutions will probably then race to sell all their US government bonds and stock market holdings.
In return the US government would likely freeze those assets, and if that happens, gold will be set to begin rising thousands of fiat dollars higher each day. The US stock market would collapse so fast from the massive Euro zone selling that it could make the crash of 1929 look like an Apollo rocket heading for the moon.
The bottom line: gold is the money of three billion Asian citizen kings and it’s time for the rest of the world to wake up and join the supreme money party. There’s no escape from what lies ahead for the world’s fiat, debt, and extortion-obsessed governments, and in America, the fall from supposed grace could be the biggest (and most well-deserved?) fall of them all.
On that note, the ten-year interest rates chart. The upside breakout carries enormous implications for the US government… and for gold. For decades, I’ve warned that QE to infinity is a fantasy. I predicted it will be replaced with higher rates to infinity, and higher US fiat prices to infinity for gold. I’m more adamant about that prediction now than ever. Loss of confidence in governments and their fiat is in play… and it’s here to stay!
The new Fed chair hasn’t been picked, but frontrunner Kevin favours QT (to infinity?) and views the stock markets as outrageously overvalued. He’ll need massive QT to restore any semblance of confidence in the US government, its bonds, and its fiat.
What I continue to view as one of the greatest base patterns in the history of markets, the CDNX inverse H&S pattern. I’ve suggested the breakout could accompanied by a long-term rates breakout and that prediction looks set to materialize in a magnificent way. My long-term target for the CDNX is 10,000 and many key juniors are almost certain to become “thousand baggers” even before that target is reached.
Another key chart that I urge investors to look at every day is this GDX versus gold chart. Note the key 14,3,3 series Stochastics oscillator at the bottom of the chart. As the fantastic upside breakout unfolds and the rally begins, I expect that oscillator could stay overbought for not just years… but for decades. The bottom line is this:
It’s a new era, a gold bull era, and it’s all about the rise of the savviest citizens as kings!